EXW
(Ex-works; Ex-factory; Ex-warehouse,Ex-mil) The seller delivers
when he places the goods at the disposal of the buyer at
the seller's premises or another named place.
The buyer has to bear all costs and risks involved in taking
the goods from the sellers' premises.
FCA
(Free carrier) 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 the goods at
that place, the seller is responsible for loading. If delivery
occurs at any other place, the seller is not responsible
for unloading.
This term may be used irrespective of the mode of transport,
including multimodal transport.
FOB
(Free on board) The seller delivers when the goods pass
the ship's rail at the named port of shipment. 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.
FAS
(Free alongside ship) The seller delivers when the goods
are placed alongside the vessel at the named port of shipment.
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 for export.
However, if the parties wish the buyer to clear the goods
for export, this should be made clear by adding explicit
wording to this effect in the contract of sale.
CFR
(Cost and freight) 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.This term can be used only for sea and inland waterway
transport.
CIF
(Cost, insurance and freight) 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.
Consequently, the seller contracts for insurance and pays
the insurance premium. The buyer should note that under
the CIF term the seller is only required to obtain insurance
on minimum cover. The CIF term requires the seller to clear
the goods for export.
CPT
(Carried paid to) 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. The buyer bears all risks and any other costs
occurring after the goods have been so delivered.
The CPT term requires the seller to clear the goods for
export.This term may be used irrespective of the mode of
transport including multimodal transport.
CIP
(Carriage and insurance paid) 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. The buyer bears all risks
and additional costs occurring after the goods have been
so delivered. The seller also has to procure insurance against
the buyer's risk of loss of or damage to the goods during
the carriage. The buyer should note that under the CIP term
the seller is only required to obtain insurance only on
minimum cover.
The CIP term requires the seller to clear the goods for
export.
This term may be used irrespective of the mode of transport,
including multimodal transport.
DAF
(Delivered at frontier) The seller delivers when the goods
are placed at the disposal of the buyer on the arriving
means of transport not unloaded, cleared for export, but
not cleared for import at the named point and place at the
frontier, but before the customs border of the adjoining
country.
This term may be used irrespective of the mode of transport
when goods are to be delivered at a land frontier. When
delivery is to take place in the port of destination, on
board a vessel or on the quay (wharf), the DES or DEQ terms
should be used.
DES
(Delivered ex-ship) The seller delivers when the goods are
placed at the disposal of the 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 the named port of destination before discharging
the goods.
This term can be used only when the goods are to be delivered
by sea or inland waterway or multimodal transport on a vessel
in the port of destination
DEQ
(Delivered ex-quay) The seller delivers when the goods are
placed at the disposal of the buyer not cleared for import
on the quay at the named port of destination. The seller
has to bear costs and risks involved in bringing the goods
to the named port of destination and discharging the goods
on the quay. The DEQ term requires the buyer to clear the
goods for import and to pay for all formalities, duties,
taxes and other charges upon import.
This term can only be used when the goods are to be delivered
by sea or inland waterway or multimodal transport on discharging
from a vessel onto the quay (wharf) in the port of destination.
DDU
(Delivered duty unpaid) 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"
(which term includes the responsibility for and the risks
of the carrying out of customs formalities, and the payment
of formalities, customs duties, taxes and other charges)
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) 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 all the costs and risks involved in bringing
the goods thereto including, where applicable, any "duty"
(which term includes the responsibility for and the risks
of the carrying out of customs formalities and the payment
of formalities, customs duties, taxes and other charges)
for import in the country of destination.
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