Question

The seller must place the goods, cleared for export, alongside the Bessel at the named port of shipment. Which INCOTERM is this?

a) CFR (Cost and Freight)
b) FCA (Free Carrier)
c) DAP (Delivered at Place)
d) CPT (Carriage Paid To)

Answer 1

The INCOTERM that matches the described situation is FCA (Free Carrier), which requires the seller to deliver goods, cleared for export, alongside the vessel at the named port of shipment.

Step-by-step explanation:

The INCOTERM that requires the seller to place the goods, cleared for export, alongside the vessel at the named port of shipment is FCA (Free Carrier).

This term obligates the seller to deliver the goods to the carrier nominated by the buyer at the seller's premises or another named place. It is the buyer's responsibility to enter into the contract of carriage and to clear the goods for export. Although CFR (Cost and Freight) involves the seller clearing the goods for export, the responsibility includes loading the goods on the vessel.