APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 6

Which of the following rules specifies whether the importer is responsible for insuring cargo?

Answer options

• A. World Trade Organization (WTO) rule
• B. Lloyds of London rule
• C. Incoterms ® rule
• D. Shipper's rule

Correct answer: A

Explanation

The World Trade Organization (WTO) rule outlines the responsibilities of importers and exporters, including the obligation to insure cargo. The other options, while related to trade and shipping, do not specifically address insurance responsibilities for importers.