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EXW |
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Ex Works |
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FCA |
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Free Carrier |
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FAS |
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Free Along Side Ship |
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FOB |
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Free on Board |
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CFR or C&F |
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Cost and Freight |
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CIF |
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Cost Insurance and Freight |
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CPT |
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Carriage paid to |
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CIP |
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Carriage and Insurance paid to |
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DAF |
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Delivered at Frontier |
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DES |
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Delivered ex Ship |
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DEQ |
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Delivered ex Quay |
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DDU |
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Delivery Duty Unpaid |
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DDP |
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Delivery Duty Paid |
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EXW - Ex Works....named place
The seller “delivers” when he places the goods at the disposal of the buyer at the seller’s premises (or other named place) not cleared for export and not loaded on any vehicle. This is the minimum obligation for the seller. The buyer bears all costs and risks involved in taking the goods from the seller’s premises. If the parties wish the seller to be responsible for the loading of the goods on departure and to bear the risks and all of the costs of such loading, this should be made clear in the contract of sale. |
FCA - Free Carrier....named place
“Free Carrier” means that the seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the named place. Delivery can occur at the seller’s premises or at the main carrier’s terminal. If at the seller’s premises, the seller is responsible for loading. If at any other place, the seller is not responsible for unloading. |
FAS - Free Along Side Ship....named port of shipment
“Free Along Side Ship” means, that the seller delivers when the goods are placed alongside the vessel at the named port of shipment. This means, that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment. This requires the seller to clear the goods for export. |
FOB - Free on Board....named port of shipment
“Free on Board” means that the seller delivers when the goods pass the ship’s rail (or truck/vessel/Airplane) at the named port of shipment. The buyer bears all costs and risk of loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export. |
CFR or C&F - Cost and Freight....named port of destination
“Cost and Freight” means, that the seller delivers when the goods pass the ship’s vessel (or truck/vessel/Airplane) at the named port of shipment. The seller bears all costs and freight necessary to bring the goods to the named port of destination, but the risk of loss of or damage to the goods, as well as any other additional costs due to events occurring after the time of delivery, are on the buyer, not the seller. The CFR (or C&F) requires the seller to clear the goods for export. |
CIF - Cost, Insurance and Freight....named port of destination
“Cost, Insurance and Freight” means that the seller delivers when The goods pass a ship’s rail (or truck) at the named port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination, but the risks of loss of or damage to the goods, as well as any other additional costs due to events occurring after the time of delivery, are on the buyer following delivery, not on the seller. In CIF, the seller also has to procure marine insurance against the buyer’s risk of loss of or damage to the goods during the main carriage. The seller therefore contracts for the insurance and pays for the insurance permium. This only requires the seller to obtain minimum cover. |
CPT - Carriage paid to....named place of destination
“Carriage paid to” means that the seller delivers the goods to the carrier nominated by him but the seller must, in addition, pay the cost of carriage necessary to bring the goods to the named destination. This means that the buyer bears all risks and any other costs occurring after the goods have been so delivered. |
CIP - Carriage and Insurance paid to....named place of dest.
“Carriage and Insurance paid to” means that the seller delivers the goods to the carrier nominated by him but the seller must, in addition, pay the cost of carriage necessary to bring the goods to the named destination. This means that the buyer bears all risks and any other costs occurring after the goods have been so delivered. In “CIP”, the seller also has to procure insurance against the buyer’s risk of loss of or damage to the goods during the carriage. The seller therefore contracts for insurance and pays the insurance permium. |
DAF - Delivered at Frontier....named place
“Delivered at Frontier” means that the seller delivers the goods when they are placed at the disposal of the buyer on the transport conveyance, unloaded, cleared for export, but not cleared for import at the named point and place of the frontier. This is before the customs porter of the adjoining country. This is typically used in rail carriage. The frontier in question must be defined precisely by naming the point and place in the term. |
DES - Delivered ex Ship....named port of destination
“Delivered ex Ship” means that the seller delivers when the goods are placed at the disposal for buyer on board the ship, not cleared for import at the named port of destination. The seller has to bear all the costs and risks involved in bringing the goods to named port of destination before discharging. If the parties wish the seller to bear the cost and risk of the discharging of the goods, then the DEQ term should be used. |
DEQ - Delivered ex Quay....named port of destination
“Delivered ex Quay” means that the seller delivers when the goods are placed at the disposal for buyer, not cleared for import on the wharf or dock at the main port of destination. The seller bears the costs and risks involved in bringing the goods to the named port of destination and discharging goods onto the wharf. The buyer is required to clear the goods for import and to pay all charges on import. Ifr the parties wish to extend the seller’s obligations, risks and costs of the handling of the goods from the quay to another place inland (eg a terminal or warehouse), then the DDU or DDP terms can be used. |
DDU - Delivery Duty Unpaid....named place of destination
“Deliver Duty Unpaid” means that the seller delivers the goods to the buyer, not cleared for import, and not unloaded from any means of transport at the named place of destination. The seller has to bear the costs and risks involved in bringing the goods to the point, with the exception that, where applicable, any duties payable and custom formalities for the import into the country of destination are the responsibility of the buyer. This duty has to be born by the buyer as well as any costs and risks caused by affiliated to clear the goods for import in time. |
DDP - Delivered Duty Paid....named place of destination
“Delivery Duty Paid” means that the seller delivers the goods to the buyer, cleared for import, and not unloaded from any arriving means of transport at the named place of destination. The seller must pay all costs and risks involved in bringing the goods to that point and where applicable, any duty for the import in the country of destination. |
Note: EXW represents the minimum obligation to the seller DDP the maximum obligation. DDU is used, in contrast, where the parties wish to buy or to bear all risks and costs of import.
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