PRACTICAL CASE INCOTERMS

PRACTICAL ASSUMPTION 1

The Spanish company MUEBLES LEVANTE SA based in Ibi (Alicante) is negotiating with

an American importer, SUNRISE FURNITURE LTD from Orlando (Florida) the sale of a

container of your products.

The importer has requested prices for the following Incoterms:

1. EXW Ibi, Incoterms 2010

2. FCA Ibi, Incoterms 2010

3. FCA Maritime Terminal Port of Valencia Incoterms 2010.

4. CPT Terminal Port of Jacksonville (Florida) Incoterms 2010.

5. CIP Terminal Port of Jacksonville (Florida) Incoterms 2010.

6. DAT Terminal Terminal Port of Jacksonville (Florida) Incoterms 2010.

7. DAP Orlando (Florida) Incoterms 2010.

8. DDP Orlando (Florida) Incoterms 2010.

This is a shipment consisting of 30 wooden shelves. Each shelf is transported

dismantled in a box of 1 x 1 x 2 meters (width x height x length) and weighing 190 kilos gross.

The shipment will be transported from the exporter’s warehouse to that of the importer in a

40-foot high cube container.

The cost relationship of the operation is as follows:

COSTS AT ORIGIN

265 € / Shelf

COST OF CONTAINERS AND PACKAGING: €2.7 / Shelf

CERTIFICATE OF ORIGIN: 60 €

INTERNAL TRANSPORT TO VALENCIA PORT: 450 €

EXPORT DISPATCH: 90 €

FREIGHT 'STRICT LINER TERMS' VALENCIA / JACKSONVILLE: 1,328 €, surcharges included

TRANSPORT INSURANCE: 150 €

DESTINATION COSTS (EXCHANGE: 1 €/ 1.25 USD)

-Unloading of merchandise, 450 €

IMPORT DISPATCH: 56 USD = 45€

850 USD = 680 €

1802 USD = 1,460 €

INTERNAL TRANSPORT TO ORLANDO: 725 USD = 580 €

It is requested:

Mark the costs that the exporter would be responsible for in each of the Incoterms
that the importer requests a quote.

PRACTICAL SUPPOSITION 2

The company MARVAL, dedicated to the production of vegetable preserves, wishes to carry out a
commercial offer to an American company. Calculate the value of the commercial offer in
FCA, FAS, FOB position, knowing that the offer is made under the following terms:

Price of the products (EXV)............................................................. 110,000 €

Internal transport (from the factory to the shipping port)...... 460 €

Loading costs..................................................................................... 254 €

Shipping....................................................................................................... 1,140 €

Export tariff rights....................................................... 60 €

Import duties ………………………………..… 60 €

Insurance.................................................................................................... €153

Transport from the port of destination to the buyer's warehouse......... €142

PRACTICAL ASSUMPTION 3

The company VIMAR, dedicated to the marketing of ceramic products, wishes to carry out
a commercial offer to a Japanese company. Calculate the value of the commercial offer in
CFR and CIF positions, knowing that the offer is made in the following terms:

Price of the products............................................................. 120,000 €

Internal transport (from the factory to the shipping port)...... 580 €

Loading expenses..................................................................................... 254 €

Freight....................................................................................................... €1,540

Export tariff rights........................................................ 60 €

Importation office expenses …………………………………….. 120 €

Insurance............................................................................................... 155 €

Transport from the destination port to the buyer's warehouse......... 142 €

PRACTICAL ASSUMPTION 4

VALCA S.A. is a company dedicated to the manufacture of electronic components and wishes to
make a commercial offer to a Korean company. Calculate the value of the commercial offer
in CPT and CIP position, knowing that the offer is made under the following terms:

Price of the products (EXV)............................................................. €12,300

Transport to air cargo terminal .................... 214€

Export dispatch expenses........................................................... 102€

Loading expenses on the plane ................................................................. 146€

Air transport fee........................................................................... 1,258€

Air transport insurance ......................................................................... 236€

Goods unloading …………………………………………........ 132€

PRACTICAL ASSUMPTION 5

VALCA S.A. is a company dedicated to the marketing of cosmetic products and wishes
make a commercial offer to a Canadian company. Calculate the value of the offer
commercial in CFR, CIF, CPT, and CIP position, knowing that the offer is made in the following
terms:

Price of the products (EXV)…………………………………….100,000€

Transport to air cargo terminal.......................350€

Internal transport (from the factory to the shipping port) .......... 400€

Shipping costs (plane or ship)..................................................200€

Freight shipping............................................................... 1,600€

Air transport …………………………………………………………..€1,200

Boat transport insurance...................................................................................240€

Air transport insurance ................................................................................300€

Cargo of goods ....................................................... 250€

Transport from destination port or airport to buyer's warehouse ………600€

Customs procedures and export duties … …………………………….200€

Customs procedures and import tariff duties .............................190€

PRACTICAL ASSUMPTION 6

The company TRISA, dedicated to the manufacture of machinery for footwear, wishes to carry out
a commercial offer to a Russian company. Calculate the value of the commercial offer in position
DAT, DAP, and DDP, knowing that the offer is made under the following terms:

Price of the products (EXV)............................................................. 210,000 €

Internal transport (from the factory to the shipping port)...... €4,600

Loading costs ..................................................................................... 854 €

Freight....................................................................................................... 1,940 €

Tariff duties importation ....................................................... 621 €

Insurance.................................................................................................... 353 €

Transport from the destination port to the buyer's warehouse......... 542 €

Export dispatch costs (customs agent procedures)……… 154 €

Import dispatch expenses (customs agent, licenses)……… 152 €

PRACTICAL ASSUMPTION 7

The company LUNASA, dedicated to the manufacture of mirrors, wants to make an offer.
commercial offer to a Chinese company. Calculate the value of the commercial offer in EXW, FCA position.
FAS, FOB, CFR, CIF, CPT, CIP, DAT, DAP, and DDP, knowing that the offer is made in the
following terms:

Price of the products (EXV)............................................................. 300,000 €

Internal transport (from the factory to the port or airport)...... €2,400

Port/Airport loading expenses........................................................ 654 €

Port/Airport discharge costs.............................. 750 €

Shipping 1,840 €

Import duties........................................................................... 643 €

Transport insurance................................................................................... 251 €

Transport from port/airport to buyer's warehouse €640

Export dispatch expenses (customs agent procedures)........ 184 €

Operation taxes (VAT) ......................... 200 €

Import dispatch expenses (customs agent, licenses)……… 252 €

Packaging of the merchandise ...................................................................... 200€

Inspection of goods prior to shipment ............................................. 60€

GLOBAL PRACTICAL ASSUMPTION

The company POMASA, dedicated to the commercialization of vegetable preserves, wishes to carry out
a commercial offer to an Indian company. Calculate the value of the commercial offer in position
EXW, FCA, FAS, FOB, CFR, CIF, CPT, CIP, DAT, and DDP, knowing that the offer is made in the
following terms:

Price of the products (EXV)............................................................. 280,000 €

Internal transport, from the factory to the port/airport............ 800 €

Transport from destination port/airport to buyer's warehouse €640

Loading costs at port/airport of origin....................................... 564 €

Unloading costs at the port/airport of destination............................ 650 €

Warehouse seller loading costs....................................................... 654 €

Buyer warehouse unloading costs............................................... 450 €

Freight ship............................................................................................. €1,540

Air transport …………………………………………………..… 2,000 €

Tariff rights importation........................................................ 643 €

Transport insurance................................................................................... 251 €

Export dispatch expenses (customs agent procedures)……… 184 €

Operation taxes (VAT) …………………………………….. 200 €

252 €

Packaging of the merchandise ...................................................................... 200€

Pre-shipment inspection of goods required by buyer.......... €60

EXERCISES TO BE SOLVED IN CLASS. INCOTERMS

Put true or false:

Proposal True or False

The Incoterms CIP is for use in

any means of transportation except
the maritime

The Incoterm CIF and the Incoterm FOB

they coincide in the transfer of the
risk

In the Incoterm FAS, the procedures for

exportation is borne by the
buyer

The insurance coverage in CIF must

to be made in a different currency than the
of the contract

2-If in an FCA operation the delivery of the goods to the first carrier designated by

the buyer is made at the seller's own warehouses, so it would be the same as

use the Incoterm EXW. Comment on whether you agree or not, and why.

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3- Based on the described situation, place the Incoterm correctly and

complete.

Operational Situation Correct Incoterm

We import 100 tons of a certain product.

Fertilizer coming from India. The freight and
the merchandise insurance was paid in
origin, from India to Tucumán. The
risks are transferred when the merchandise
arrives at our warehouses in Tucumán, no
despite the customs procedures in Argentina
they have run at our expense. The
merchandise is delivered without unloading from the
truck.

We import staples from Shanghai. The

sales conditions include costs and expenses
until the merchandise is found on
the ship at the Port of Shanghai.

We export honey to the USA, the means of

Transportation will be
our maritime y
responsibility regarding costs and risks
culminates when we deliver the merchandise to the
carrier. The goods must be
shipped for export. We cannot
fill a complete container, so
we resorted to an agent to do the
consolidation with goods from others
exporters. This one asks us to
let's deliver the goods in Córdoba for
to carry out the consolidation there.

A Spanish company, dedicated to the manufacture of plastic products, wishes to carry out a
commercial offer to a Russian company. Knowing that the offer is made in the following
terms:

200,000 €

2. Internal transport (from the factory to the shipping port): 2,500 €

3. Loading expenses .......................................................... 500 €

4. Freight ......................................................... 2,000 €

5. Customs duties export …………………………………….... 240 €

Insurance ............................................................. 300 €

7. Unloading expenses ………………………………………………….…… 340 €

8. Customs duties importation. ……………………………………... 220 €

9. Transport from the destination port to the buyer's warehouse …….… 250 €

10. Operation taxes (VAT) ................................. 32,000 €

11. Import dispatch expenses (customs agent)…………….….. 160 €

12.Export dispatch costs (customs agent)………….……... 158 €

Calculate the value of the commercial offer in FCA, FAS, FOB, CFR, CIF, CPT, CIP, DAT position.

DAP and DDP