EXW EX WORKS
(... named place) "Ex works" means the seller's only responsibility is
to make the goods available at the seller's premises, i.e., the works or
factory. The seller is not responsible for loading the goods on the vehicle
provided by the buyer unless otherwise agreed. The buyer bears the full costs
and risk involved in bringing the goods from there to the desired destination.
Ex works represents the minimum obligation of the seller.
FCA FREE CARRIER (... named place)
This term has been designed to meet the requirements of multimodal
transport, such as container or roll-on, roll-off traffic by trailers and
ferries. It is based on the same name principle as F.O.B. (free on board),
except the seller fulfills its obligations when the goods are delivered to the
custody of the carrier at the named place. If no precise place can be named at
the time of the contract of sale, the parties should refer to the place where
the carrier should take the goods into its charge. The risk of loss or damage to
the goods is transferred from seller to buyer at that time and not at the ship's
rail. The term "carrier" means any person by whom or in whose name a
contract of carriage by road, rail, air, sea, or a combination of modes has been
made. When a seller has been furnished a bill of lading, way bill or carrier's
receipt, the seller duly fulfills its obligation by presenting such a document
issued by a carrier.
FAS FREE ALONGSIDE SHIP (... named port of
shipment) "F.A.S." or "free alongside ship" requires the
seller to deliver the goods alongside the ship on the quay. From that point on,
the buyer bears all costs and risks of loss and damage to the goods. Unlike
F.O.B., F.A.S. requires the buyer to clear the goods for export and pay the cost
of loading the goods.
FOB FREE ON BOARD (... named port of
shipment) Under "F.O.B." or "free on board," the goods are
placed on board the ship by the seller at a port of shipment named in the sales
agreement. The risk of loss of or damage to the goods is transferred to the
buyer when the goods pass the ship's rail (i.e., off the dock and placed on the
ship). The seller pays the cost of loading the goods.
CFR COST AND FREIGHT (... named port of
destination) "CFR"requires the seller to pay the costs and freight
necessary to bring the goods to the named destination, but the risk of loss or
damage to the goods, as well as any cost increases, are transferred from the
seller to the buyer when the goods pass the ship's rail in the port of shipment.
Insurance is the buyer's responsibility.
CIF COST,
INSURANCE AND FREIGHT (... named port of destination) "CIF" is CFR.
with the additional requirement that the seller procure transport insurance
against the risk of loss or damage to goods. The seller must contract with the
insurer and pay the insurance premium. Insurance is generally more important in
international shipping than domestic shipping, because U.S. laws generally hold
a common carrier to be liable for lost or damaged goods.
CPT CARRIAGE PAID TO (... named place of
destination) This term means the seller pays the freight for the carriage of the
goods to the named destination. The risk of loss or damage to the goods and any
cost increases transfers from the seller to the buyer when the goods have been
delivered to the custody of the first carrier, and not at the ship's rail.
Accordingly, "freight/carriage paid to" can be used for all modes of
transportation, including container or roll-on roll-off traffic by trailers and
ferries. When the seller is required to furnish a bill of lading, way bill, or
carrier receipt, the seller duly fulfills its obligation by presenting such a
document issued by the person contracted with for carriage to the main
destination.
CIP CARRIAGE AND INSURANCE PAID TO (... named
place of destination) This term is the same as "freight/carriage paid to
(CPT)" but with the additional requirement that the seller has to procure
transport insurance against the risk of loss or damage to the goods during the
carriage. The seller contracts with the insurer and pays the insurance premium.
DAF DELIVERED
AT FRONTIER (... named place) "Delivered at frontier" means that the
seller's obligations are fulfilled when the goods have arrived at the frontier
but before the customs border of the country named in the sales contract. The
term is primarily used when goods are carried by rail or truck. The seller bears
the full cost and risk in delivering the goods up to this point, but the buyer
must arrange and pay for the goods to clear customs.
DES DELIVERED EX SHIP (... named port of
destination) Means the seller shall make the goods available to the buyer on
board the ship at the place named in the sales contract. The seller bears the
full cost and risk involved in bringing the goods there. The cost of unloading
the goods and any customs duties must be paid by the buyer.
DEQ DELIVERED
EX QUAY (... named port of destination) Means the seller has agreed to make the
goods available to the buyer on the quay or the wharf at the place named in the
sales contract. The seller bears the full cost and risks in delivering the goods
to that point including unloading.
DDU DELIVERED
DUTY UNPAID (... named place of destination) Under these terms, the seller
fulfills his obligation to deliver when the goods have been available to the
buyer uncleared for import at the point or place of the named destination. The
seller bears all costs and risks involved in bringing the goods to the point or
place of named destination. There is no obligation for import clearance.
DDP DELIVERED
DUTY PAID (... named place of destination) represents the seller's maximum
obligation. The term "DDP." is generally followed by words indicating
the buyer's premises. It notes that the seller bears all risks and all costs
until the goods are delivered. This term can be used irrespective of the mode of
transport. If the parties wish to make clear that the seller is not responsible
for certain costs, additional word should be added (for example, "delivered
duty paid exclusive of VAT and/or taxes").
