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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

Under the structure of Incoterms 2020, each rule sets out the obligations of the seller and the buyer in ten parallel articles, A1 to A10 and B1 to B10. Which pairing correctly describes the articles in the structure?

In Incoterms 2020, articles A1/B1 cover general obligations, A2/B2 cover delivery and A3/B3 cover transfer of risks. Later articles cover carriage, insurance, documents, clearance, checking and packaging, costs and notices. Price and dispute resolution are not covered.

  1. AA2/B2 deal with delivery; A3/B3 deal with price and payment
  2. BA1/B1 deal with general obligations; A2/B2 deal with delivery; A3/B3 deal with transfer of risksCorrect
  3. CA1/B1 deal with delivery; A2/B2 deal with export licences; A3/B3 deal with insurance
  4. DA1/B1 deal with transfer of risks; A2/B2 deal with contracts of carriage; A3/B3 deal with dispute resolution

Explanation

In Incoterms 2020, A1/B1 are general obligations, A2/B2 delivery, A3/B3 transfer of risks, A4/B4 carriage, A5/B5 insurance, A6/B6 delivery/transport document, A7/B7 export/import clearance, A8/B8 checking, packaging and marking, A9/B9 allocation of costs, A10/B10 notices. The other options mix up the order or include topics, such as dispute resolution and price, that Incoterms do not cover.

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