Incoterm Groups

Incoterm

Description

Group E $/$ Departure

ExW

Ex Works $(...$ named place$)$

Group F $/$ Main carriage unpaid

FCA

Free Carrier $(...$ named place$)$

FAS$**$

Free Alongside Ship $(...$ named port of shipment$)$

FOB$**$

Free on Board $(...$ named port of shipment$)$

Group C $/$ Main carriage paid

CFR$**$

Cost and Freight $(...$ named port of destination$)$

CIF$**$

Cost, Insurance, and Freight $(...$ named port of destination$)$

CPT

Carriage Paid to $(...$ named place of destination$)$

CIP

Carriage and Insurance Paid to $($named place of destination$)$

Group D $/$ Arrival

DAT

Delivered at terminal $(...$named terminal at destination$)$

DAP

Delivered at place $(...$named place of destination$)$

DDP

Delivered Duty Paid $(...$ named place of destination$)$

$**$To be only used with non$-$containerized freight and waterway$/$ocean shipments

A company in Beijing, China purchases machines from a manufacturer in Chicago, IL$.$ The terms of sale are that any repair parts while a machines is under warranty, are to be replaced by the Chicago company at no cost$.$ The Chicago company pays all freight, insurance, and taxes associated with shipping the parts to China. For such as parts shipments, which Incoterm would be appropriate?

Group of answer choices

DDP Beijing, China.

DDP Chicago, IL

EXW Beijing China

EXW Chicago, IL