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ACCA Applied Skills · Corporate and Business Law (Global) · Introduction to the UN Convention on Contracts for the International Sale of Goods and ICC Incoterms

Marlow Co is drafting an export contract for goods that will be carried by a single sea voyage in bulk, with delivery on board the vessel. Its adviser says the choice must be limited to the rules suitable for sea and inland waterway transport only. Which of the following is such a rule under Incoterms 2020?

FOB is the correct answer. Under Incoterms 2020 only FAS, FOB, CFR and CIF are restricted to sea and inland waterway transport, whereas CPT, DAP and EXW can be used for any mode of transport.

  1. ACPT
  2. BDAP
  3. CFOBCorrect
  4. DEXW

Explanation

Incoterms 2020 divides rules into those for any mode(s) of transport (EXW, FCA, CPT, CIP, DAP, DPU, DDP) and those for sea and inland waterway only (FAS, FOB, CFR, CIF). FOB is in the second group. The other options are multimodal-suitable rules.

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