1. Theory
 Compare CIF and CFR Incoterms 2010.
Similar: The seller will take care of additional costs from chartering, to carriage
and loading of goods, as well as insurance for risks during transportation. Risk
transfer from the seller to the buyer when the goods pass the ship’s rail. Cost
transfer at the port of destination, buyer paying such costs as are not for the
seller’s account under the contract of carriage.
Differences:
CIF (Carriage and insurance to be CFR (Carriage to be arranged by the
arranged by the seller)
seller)
The seller delivers the goods on board
the vessel or procures the goods
already so delivered. The risk of loss of
or damage to the goods passes when
the goods are on board the vessel. The
seller must contract for and pay the
costs and freight necessary to bring the
goods to the named port of destination.
The seller also contracts for insurance
cover against the buyer’s risk of loss of
or damage to the goods during the
carriage.
The seller must pay the costs and
freight necessary to bring the goods to
the named port of destination. The risk
of loss of or damage to the goods, as
well as any additional costs due to
events occurring after the time the
goods have been delivered on board
the vessel is transferred from the seller
to the buyer when the goods pass the
ship’s rail in the port of shipment. CFR
is used when a buyer prefers to rely on
its own insurance company, rather than
the sellers.
 Compare DAT Incoterms 2010 and DPU Incoterms 2020.
Similar: The seller delivers the goods to the buyer when the goods have been
removed from the means of transport and placed at the disposal of the buyer at
the place of destination mentioned in the contract.
Differences:
DAT Incoterms 2010
DPU Incoterms 2020
Delivery: The seller must deliver the Delivery: The seller must deliver the
goods by placing the goods at the goods by placing the goods at the
disposal of the buyer on the arriving disposal of the buyer as soon as they
means of transport ready for unloading are unloaded from the arriving means
at the agreed place, if any, at of transport at the agreed place, if any,
destination on the date or within the at the place of destination on the date
agreed delivery period.
or within the agreed period. agreed
delivery.
Transfer risk: The seller must bear all Transfer risk: The seller bears all risks
risks of loss of or damage to the goods of loss of or damage to the goods until
until they have been delivered to the they have been delivered to the agreed
agreed place and ready for unloading.
place and unloaded.
Practice:
Task 1: Seller from Đồng Tháp sells 18.000 tons of corn to buyer in Busan
(South Korea), goods will be delivered in Kobe (Japan). Choose the suitable
Incoterms when:
1. Goods are delivered to buyer at the warehouse of seller, loading charge to
truck, export formalities and other cost to deliver cargo are at the buyer’s
account. EXW
2. Buyer arranges transport and pay for main transport freight. Seller handles
export formalities and bears the cargo risks until it is delivered on board the
vessel. FOB
3. Seller does not agree with term (2), he wants to handle export custom
clearance, arrange for main transport feight. Risks will be transferred after
cargo is delivered on board the vessel at loading port. CFR
4. Seller and Buyer agrees with term (3), but seller will buy cargo insurance. CIF
5. Seller suggests to bear all the risks and cost until cargo is unloaded safely at
the discharge port; buyer will handle import formalities and others. DPU
Task 2: Stuffing shoes into container and make price

Calculate the pairs of shoes that best fit a 20 feet container
(L5,867mxW2,33mxH2,35m)
Dimensions per carton: 20cmx30cmx40cm = 0.2mx0.3mx0.4m
Volume of each carton = 0.2x03x04 = 0.024 (m3)
Container volume = 5.867x2.33x2.35 = 32 (m3)
Number of cartons per container = 32/0.024 = 1.333 (cartons)
Quantity of goods to fill a container = 1.333 x 6 = 7,998 children’s pairs of
shoes.

Make export price quotation (in $) for a pair of shoes under FOB Hai
Phong Incoterms 2010, when ex-work Hanoi factory price is 1.56$/pair.
Inland transport for 1 container 20ft from Ha noi to Hai Phong is 4.8 million
VND/cont. Bill of Landing Issuing fee is 30$/bill, terminal handling charge
is 200$/container. Exchange rate is 1$=22.000VND.
Export price (FOB) for 7,998 children’s pair of shoes: finished goods price +
domestic shipping cost for 1 container + bill fee + container lifting costs =
(1.56$ x 7,998) + 219$ + 30$ + 200$ = 12,926$
The price of each children’s pair of shoes: 12,926$/ 7,998 = 1.62$ per pair.