Chapter 2 Intern ati onal Trade Terms 1 2 3 4 5 6 7 8 9 10 I. Multiple choices B C A C C D A B C D II. True or false stateme nts T T F F T F F F F T Explain the followi ng terms shipme nt con tract Shipme nt con tract is a con tract using an In coterm which in dicates that the delivery happe ns at the time or before the time of shipme nt. symbolic delivery Symbolic delivery is a delivery situation in which when the seller delivers the buyer does not physically receive the goods. This kind of delivery is proved by the submissi on of tran sport docume nt by the seller to the buyer. arrival con tract Arrival con tract means a con tract using an In coterm which in dicates that the delivery happe ns whe n the goods arrive at the desti natio n. actual delivery Actual delivery refers to a delivery situation in which when the seller delivers the buyer does physically receive the goods. Short questi ons Who pays for loadi ng for shipme nt un der FOB ? The seller. Who pays for un loadi ng un der CIF? The buyer. Compare and con trast FOB, CFR and CIF? Similarities: a. The seller's risk will be transferred to the buyer when the goods are loaded on board, b. The seller is responsible for export customs formalities while the buyer is responsible for import customs formalities, c. The buyer is resp on sible for uni oadi ng the goods at the port of desti nati on, d. All three terms can only be used for waterway tran sportatio n. Differen ces: a. FOB requires the buyer to arrange and pay for the ocea n tran sportatio n; CFR requires the seller to arrange and pay for the ocean transportation; CIF requires the seller to arrange and pay for the ocean tran sportati on and in sura nce aga inst the buyer's risk. What are the two types of trade terms concerning the tran sfer of risks? Shipme nt con tract terms vs. arrival con tract terms. Un der shipme nt con tract terms the seller's risk will be tran sferred to the buyer before the g