EXW

EX WORKS (…named place)
“Ex works” means that the seller delivers when he places the goods at the disposal of the buyer at the seller’s premises or another named place (i.e. works, factory, warehouse, etc.) not cleared for export and not loaded on any collecting vehicle.

This term thus represents the minimum obligation for the seller, and the buyer has to bear all costs and risks involved in taking the goods from the seller’s premises.

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.

It should be noted that the chosen place of delivery has an impact on the obligations of loading and unloading the goods at that place. If delivery occurs at the seller’s premises, the seller is responsible for loading. If the delivery occurs at any other place, the seller is not responsible for unloading.

This term can be used irrespective of the mode of transport, including multimodal transport.

FAS

FREE ALONGSIDE SHIP (…named port of shipment)
“Free Alongside 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.

The FAS term 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 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 point. The FOB term requires the seller to clear the goods for export.

This term can be used only for sea or inland waterway transport.

If the parties do not intend to deliver the goods across the ship’s rail, the FCA term should be used.

CFR

 COST AND FREIGHT (…named port of destination)
“Cost and Freight” means that the seller delivers when the goods pass the ship’s rail in the port of shipment.

The seller must pay the 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 additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer.

The CFR term 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 the ship’s rail in the port of shipment.

The seller must pay the 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 additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer. However, 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 carriage.

The CIF term requires the seller to clear the goods for export.

DDU

 DELIVERED DUTY UNPAID (…named place of destination)
“Delivered duty unpaid” means that the seller delivers the goods to the buyer, not cleared for import, and not unloaded from any arriving means of transport at the named place of destination. The seller has to bear the costs and risks involved in bringing the goods thereto, other than, where applicable, any duty for import in the country of destination. Such duty has to be borne by the buyer as well as any costs and risks caused by his failure to clear the goods for import in time.

DDP

 DELIVERED DUTY PAID (…named place of destination)
“Delivered 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 has to bear the all the costs and risks involved in bringing the goods thereto including, where applicable, any duty for import in the country of destination.

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