| Term |
Description |
Place of Transfer |
| EXW |
Ex-Works |
(.... named place) |
| FCA |
Free-Carrier |
(.... named place) |
| FAS |
Free Alongside Ship |
(.... named port of
shipment) |
| FOB |
Free On Board |
(.... named port of
shipment) |
| CFR |
Cost & Freight |
(.... named port of
destination) |
| CIF |
Cost, Insurance and
Freight |
(.... named port of
destination) |
| CPT |
Carriage Paid To |
(.... named place of
destination) |
| CIP |
Carriage, Insurance
Paid To |
(.... named place of
destination) |
| DAF |
Delivered At Frontier |
(.... named place) |
| DES |
Delivered Ex-Ship |
(.... named port of
destination) |
| DEQ |
Delivered Ex-Quay |
(.... named port of
destination) |
| DDU |
Delivered Duty Unpaid |
(.... named place of
destination) |
| DDP |
Delivered Duty Paid |
(.... named place of
destination) |
EXW - Ex-Works
Ex-works means that the seller's responsibility to deliver
the goods to the buyer is completed when the seller has made
the goods available to the buyer at the seller's premises.
The seller is not responsible for loading them on vehicles
provided by the buyer or clearing them for export. The buyer
bears the cost and risks in the transport of the goods from
the seller's works to the destination. This term provides
the minimum obligations on a seller.
FCA - Free-Carrier
Free-Carrier means the seller's responsibility is to hand
the goods over to the carrier at the place indicated in the
shipping terms, cleared for export. This can involve some
transportation at the seller's cost from the factory to the
carrier. Sellers may, and commonly do, act as buyers' agents
in arranging transportation at buyers' cost. Used for any
mode of transport (air, sea, rail, truck or multimodal), the
carrier is the transporter, including a freight forwarder,
if the buyer designates a forwarder to receive the goods.
FAS - Free Alongside
Ship
Free Alongside Ship means the seller's responsibilities are
completed when the goods have been placed alongside the ship
on the quay or in lighters at the named place of transfer.
The buyer bears all costs and risks of loss or damage to the
goods from that moment. Unlike FCA and FOB, this term does
not require the seller to clear the goods for export. "Alongside"
means within reach of the carrying ship's tackle. This term
should only be used for ocean or inland water transportation.
FOB - Free On Board
Free On Board means the seller's responsibilities are completed
when the goods, cleared for export, are placed on board a
ship by the seller at the named place of transfer. The risk
of loss or damage to the goods is transferred from the seller
to the buyer when the goods pass the ship's rail. This term
should only be used for ocean or inland water transportation.
If other transportation modes are used, or if the ship's rail
serves no purpose in delineating the passage of title, such
as with container, roll-on/roll-off cargo, then FCA is the
closest equivalent term.
CFR - Cost & Freight
Cost & Freight means the seller must clear the goods for
export and pay the costs and freight necessary to bring them
to the named place of transfer, but the risk of loss or damage
to the goods, and any cost increases, is transferred to the
buyer when the goods pass the ship's rail in the port of shipment.
This term is properly used only for waterway transportation
(sea or inland). If other modes are used, or if the ship's
rail serves no purpose in delineating the passage of title,
such as with container, roll-on/roll-off cargo, then CPT (Carriage
paid to...) is the closest equivalent term.
CIF - Cost, Insurance
and Freight
Cost, Insurance and Freight is similar to the term CFR (Cost
& Freight), but the seller must also procure marine insurance
on the buyer's behalf. The seller contracts with the insurer
and pays the insurance premium, although the buyer has the
risk of loss from the time the goods pass the ship's rail
in the port of shipment. This term is properly used only for
waterway transportation (sea or inland). CIP (Carriage and
insurance paid) is the closest equivalent term for other transportation
modes.
CPT - Carriage Paid To
Carriage Paid To is equivalent to CFR (or C&F) for transportation
other than by ship.
CIP - Carriage, Insurance
Paid To
Carriage, Insurance Paid To is equivalent to CIF for transportation
other than by ship.
DAF - Delivered At Frontier
Delivered At Frontier means the seller completes his responsibilities
when the goods, cleared for export, are made available at
the named place. The named place is before the destination
customs border is reached, so the buyer must clear the goods
through his customs. In fact, the frontier can be the export
country's frontier, so it is very important to specify where
the relevant delivery point is. The seller bears all costs
and risks to that point. This term can be used when goods
are shipped by any method, but is designed for rail or road
transport. It is useful when shipping to a bonded customs
warehouse or a free trade zone.
DES - Delivered Ex-Ship
Delivered Ex-Ship means the risks and costs are transferred
on the ship at the named place of destination. Goods are not
cleared for import. This term should only be used for shipments
by sea.
DEQ - Delivered Ex-Quay
Delivered Ex-Quay means the risks and costs are transferred
on the quay at the named place of transfer. Goods must have
been cleared for import, at seller's expense (including duties
and taxes). The seller is also responsible for discharge costs.
This term should only be used for shipments by sea.
DDU - Delivered Duty
Unpaid
Delivered Duty Unpaid means that the seller must handle everything,
to deliver the goods to the named place except Customs clearance
at the country of destination. The buyer is responsible for
payment of duties and taxes.
DDP - Delivered Duty
Paid
Delivered Duty Paid means that the seller must handle everything,
including Customs clearance, to deliver the goods to the named
place. Since the named place is usually the buyer's own place,
the seller arranges and pays for every step of the way. This
term provides the maximum obligations on a seller.
We would be happy to provide advice concerning the correct
usage of Incoterms and the most appropriate term to
suit your particular requirements.
Please click here for more information on terms and conditions.
SOS - Your Call for Help in International Logistics and Supply Chain Solutions.
|
