EXW – Ex Works
This term places the maximum obligation on the buyer and the minimum obligations on the seller. The buyer assumes all transportation costs and also the risks to bring the goods to their final destination. The seller does not load the goods for transport or release them for export. If the seller does load the goods, he does so below the buyer’s full cost and risk.
FCA – Free Carrier
The seller delivers the goods, free for export, to at the disposal of the first carrier (named by the buyer), at the agreed place. The seller pays for the carriage to the point designated as place of departure, and the risk is transferred when the goods are delivered to the first carrier.
CFR/ CIF – Cost, Insurance, Freight
The seller bears the transportation costs. The risk is transferred to the buyer after delivery of the goods to the first carrier.
DAP – Delivered at Place
The seller pays for transportation to the terminal, except for import-related costs (customs clearance), and assumes all risks up to the point where the goods are unloaded at the terminal.
DPU – Delivered at place unloaded
The seller delivers the goods – and transfers the risk – to the buyer when the goods, after being unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named place of destination or at an agreed point. The seller assumes all risks associated with bringing the goods to the place of destination and unloading them.
DDP – Delivered Duty Paid
The seller is responsible for delivering the goods to the named place within the buyer’s country and assumes all costs to bring the goods to the destination, including import duties and taxes. This term places the maximum obligations on the seller and minimum obligations on the Buyer.
FAS – Free Alongside Ship
The seller must place the goods alongside the ship at port. The seller must take care of all bureaucratic aspects to release the goods for export. No applies to multimodal sea transport.
FOB – Free on Board
The seller must place the goods on board the vessel designated by the buyer. Costs and risks are divided when the goods are on board the vessel. The seller must release the goods for export. Does not apply to multimodal sea transport.
CFR/ CNF – Cost and Freight
The seller must pay the costs and freight to bring the goods to the port of destination. However, the risk is transferred to the buyer as soon as the goods are loaded on board the vessel. Sea freight and insurance for goods not are included.
CIF – Cost, Insurance and Freight
Exactly the same as CFR, except that the seller also must pay the insurance.
FAS – Free Alongside Ship
The seller must place the goods alongside the ship at port. The seller must take care of all bureaucratic aspects to release the goods for export. No applies to multimodal sea transport.
FOB – Free on Board
The seller must place the goods on board the vessel designated by the buyer. Costs and risks are divided when the goods are on board the vessel. The seller must release the goods for export. Does not apply to multimodal sea transport
CFR/ CNF – Cost and Freight
The seller must pay the costs and freight to bring the goods to the port of destination. However, the risk is transferred to the buyer as soon as the goods are loaded on board the vessel. Sea freight and insurance for goods not are included.
CIF – Cost, Insurance and Freight
Exactly the same as CFR, except that the seller also must pay the insurance.