INCOTERMS

EXW: ExWorks

The seller delivers when it places the goods at the disposal of the buyer at the seller’s premises or at another named place (i.e., works, factory, warehouse, etc.). The seller does not need to load the goods on any collecting vehicle, nor does it need to clear the goods for export, where such clearance is applicable.

Seller Obligations:

• Delivery of goods and local authorisations
• Packaging

Buyer Obligations:

• Goods cost
• Freight in origin
• Custom Clearance
• Export fees
• International freight, from export point to import place
• Import fees
• Transportation in place of destination

FCA: Free Carrier

The seller delivers the goods to the carrier or another person nominated by the buyer at the seller’s premises or another named place. The parties are well advised to specify as clearly as possible the point within the named place of delivery, as the risk passes to the buyer at that point.

Seller Obligations:

• Delivery of goods and local authorisations
• Packaging
• Carriage to port of export
• Custom Clearance
• Export fees

Buyer Obligations:

• Goods cost
• Freight, from export place to destination
• Import fees
• Custom clearance
• Delays

FAS – Free Alongside Ship

The seller delivers when the goods are placed alongside the vessel nominated by the buyer at the named port of shipment. The risk of loss of or damage to the goods passes when the goods are alongside the ship, and the buyer bears all costs from that moment onwards.<

Seller Obligations:

• Delivery of goods and local authorisations
• Packaging
• Carriage to port of export
• Custom Clearance
• Export fees

Buyer Obligations:

• Goods cost
• Freight, from export place to destination
• Custom clearance
• Delays

FOB – Free On Board

The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel, and the buyer bears all costs from that moment onwards.

Seller Obligations:

• Delivery of goods and local authorisations
• Packaging
• Carriage to port of export
• Custom Clearance
• Export fees

Buyer Obligations:

• Goods cost
• Freight, from export place to destination
• Import fees
• Custom
• Delays

CPT – Carriage Paid to

The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination.

Seller Obligations:

• Delivery of goods and local authorisations
• Packaging
• Carriage to port of export
• Custom Clearance
• Export fees
• Freight, from export place to destination

Buyer Obligations:

• Goods cost
• Import fees
• Freight from import place
• Custom clearance
• Delays

CIP – Carriage and Insurance Paid to

The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination. The seller also contracts for insurance cover against the buyer’s risk of loss of or damage to the goods during the carriage. The buyer should note that under CIP the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have more insurance protection, it will need either to agree as much expressly with the seller or to make its own extra insurance arrangements.

Seller Obligations:

• Delivery of goods and local authorisations
• Packaging
• Carriage to port of export
• Custom Clearance
• Export fees
• Freight and insurance, from export place to destination
• Import fees (warehousing, agents…)

Buyer Obligations:

• Goods cost
• Import fees (warehousing, agents…)
• Freight from import place
• Custom clearance
• Delays

CFR – Cost and Freight

The seller delivers the goods on board the vessel or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel. the seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.

Seller Obligations:

• Delivery of goods and local authorisations
• Packaging
• Carriage to port of export
• Custom Clearance
• Export fees
• Freight and isurance, from export place to destination

Buyer Obligations:

• Goods cost
• Import fees (warehousing, agents…)
• Freight from import place
• Custom clearance
• Delays

CIF – Cost, Insurance and Freight

The seller delivers the goods on board the vessel or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel. The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination. The seller also contracts for insurance cover against the buyer’s risk of loss of or damage to the goods during the carriage. The buyer should note that under CIF the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have more insurance protection, it will need either to agree as much expressly with the seller or to make its own extra insurance arrangements.

Seller Obligations:

• Delivery of goods and local authorisations
• Packaging
• Carriage to port of export
• Custom Clearance
• Export fees
• Freight and isurance, from export place to destination
• Delays

Buyer Obligations:

• Goods cost
• Import fees
• Freight from import place
• Custom clearance

DAT – Delivered at Terminal

The seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination. “Terminal” includes a place, whether covered or not, such as a quay, warehouse, container yard or road, rail or air cargo terminal. The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination.

Seller Obligations:

• Delivery of goods and local authorisations
• Packaging
• Carriage to port of export
• Custom Clearance
• Export fees
• Freight and isurance, from export place to destination
• Delays

Buyer Obligations:

• Goods cost
• Import fees
• Freight from import place

DAP – Delivered at Place

The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. The seller bears all risks involved in bringing the goods to the named place.

Seller Obligations:

• Delivery of goods and local authorisations
• Packaging
• Carriage to port of export
• Custom Clearance
• Export fees
• Freight
• Delays

Buyer Obligations:

• Goods cost
• Import fees (warehousing, agents…) when delivering the goods
• Custom Clearance
• Freight from import place

DDP – Delivered Duty Paid

The seller delivers the goods when the goods are placed at the disposal of the buyer, cleared for import on the arriving means of transport ready for unloading at the named place of destination. The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import, to pay any duty for both export and import and to carry out all customs formalities.

Seller Obligations:

• Delivery of goods and local authorisations
• Packaging
• Carriage to port of export
• Custom Clearance
• Export fees
• Freight, from import to export point
• Import fees
• Freight and insurance from import place
• Delays

Buyer Obligations:

• Goods cost