Which of the following Incoterms® 2020 rules should be used if the firm wants risk to transfer at the manufacturing plant?

A company purchases raw materials from a domestic supplier that offers competitive overland transportation rates. The firm requires the goods be delivered to its manufacturing plant.

Which of the following Incoterms® 2020 rules should be used if the firm wants risk to transfer at the manufacturing plant?
A . CIP
B . DAP
C . FCA
D . FOB

View Answer

Answer: B

Explanation:

DAP (Delivered at Place) specifies that the seller bears all risks and costs until the goods are delivered to the specified location, in this case, the manufacturing plant. This ensures risk transfer at the point of delivery.

Reference: Incoterms® 2020 by ICC.