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EXW Ex Works (... named place)
Under these terms, the exporter concludes his participation in the negotiation when he packs the merchandise ready for shipment (in a crate, bag, etc.) and makes it available his own address within the specified time. It then falls to the foreign importer to take the measures for collecting the merchandise from the exporter's establishment, for internal transportation, loading for overseas shipment, licensing and the contracting of international freight and insurance, etc. The term "EXW" should not be used when the vendor is not able to obtain, directly or indirectly, the documents needed for exporting the goods. As can be seen, the buyer assumes all risks and costs involved in transporting the merchandise from the place of origin to its destination.
FCA FCA - Free Carrier (... named place)
Under these terms, the vendor (exporter) concludes his obligations on delivery of the merchandise, cleared for export, into the hands of the international transporter assigned by the buyer, at the specified location in the country of origin. It should be noted that the location chosen for delivery has an impact on the obligations for shipment to and discharge of the merchandise at the chosen location. If delivery occurs at the vendor's premises, the vendor is responsible for shipment. If delivery is to take place at any other location, the vendor is not responsible for discharge of the goods. That way, it falls to the buyer (importer) to contract freight procedures and international insurance. Such terms can be utilized for any mode of transport.
FAS FAS - Free Alongside Ship (... named port of shipment)
Under these terms, vendor's responsibility ends when the merchandise is delivered alongside the transport vessel, at the specified port of loading. The international freight and insurance contract shall be to the account of the buyer. The vendor shall be responsible for clearance of the goods for export. These terms may only be used for water transportation (sea, river or lake).
FOB FOB - Free on Board (... named of shipment)
Under these terms, the vendor's responsibility for the merchandise ends once it has crossed the ship's rail, at the port of loading, even though placement of the merchandise on board ship is also, in principal, a task for which the vendor is responsible. The expression FOB requires that the vendor clears the merchandise for exportation. It should be stressed that the international transporter is contracted by the buyer (importer). Hence, for a "FOB" sale, the exporter needs to know what the loading terms agreed upon by the buyer and the ship owner are, in order to verify which party should cover loading expenses for the merchandise. These terms may only be used for waterborne shipments (sea, river or lake).
CFR CFR - Cost and Freight (... named port of destination)
Under these terms, the vendor assumes all of the costs prior to loading, plus the international freight contract for transporting the merchandise to the port of destination indicated. It should be pointed out that the risks for loss or damage of the goods are transferred from the vendor to the buyer, while still at the port of loading (like the FOB term used for "ship's rail"). In this way, negotiations (strictly speaking, the sale) occur while still in the vendor country. The CFR terms require that the vendor clears the goods for export. These terms may only be used for water transportation (sea, river or lake).
CIF CIF - Cost, Insurance and Freight (... named port of destination)
Under these terms, the vendor has the same obligations as with the "CFR" mode and, in addition, has to contract marine insurance against risk of damage and loss during transportation. Since the business is still being negotiated in the exporter country (the ship's rail at the port of loading, is the point where the transference of responsibility for the goods occurs), the buyer must observe "CIF" terms and the vendor is only obliged to contract minimum cover insurance. CIF terms require that the vendor clears the goods for export. These terms may only be used for water transportation (sea, river or lake).
CPT CPT - Carriage Paid to (... named place of destination)
Under these terms, the vendor contracts the freight for transportation of the merchandise to the assigned location. The risks for damage and loss of the merchandise, plus any additional cost incurred for events that occur after delivery of the merchandise to the transporter, are transferred by the vendor to the buyer, when the merchandise is delivered into the hands of the transporter. CPT terms require that the vendor clears the goods for export. These terms can be used for any mode of transportation, including multimodal.
CIP CIP - Carriage and Insurance Paid to (...named place of destination)
Under these terms, the vendor has the same obligations as those defined for "CPT" and also bears the cost for insurance against risk of damage and loss of the merchandise during international transportation. The buyer should note that, under "CIP" terms, the vendor is only obliged to contract minimum cover insurance, given that the sale (transference of responsibility of the merchandise) is carried out in the vendor country. CIP terms require that the vendor clears the goods for export. These terms can be used for any mode of transportation, including multimodal.
DAF DAF - Delivered at Frontier (... named place)
Under these terms, the vendor has fulfilled his obligations when the merchandise is delivered, cleared for export, at a specified point of the frontier, described as precisely as possible. Delivery of the goods to the buyer shall occur at a point before the customs depot in the neighboring country. "DAF" terms can be used for any mode of transport. It is, however, most commonly used for overland transportation (road or rail).
DES DES - Delivered Ex Ship (... named port of destination)
Under these terms, the vendor has fulfilled his obligations when the merchandise is delivered, onboard ship, not cleared for export, at the landing port. The vendor shall assume all costs and risks during the international voyage. The buyer (importer) shall be responsible for taking the goods off the ship and obtaining clearance for importation. These terms may only be used for water transportation (sea, river or lake).
DEQ DEQ - Delivered Ex Quay (... named port of destination)
Under these terms, the vendor "delivers" the merchandise when it is placed at the disposal of the buyer, cleared for export, but not cleared for importation, on the quayside of the specified destination port. The vendor shall be obligated to take the merchandise to the destination port and clear it on the quayside. The risks and costs are transferred from the vendor to the buyer from the moment of "delivery" at the destination port quayside. These terms may only be used when the merchandises has to be delivered for marine, inland waterway or multimodal transportation, on discharge from the vessel at the quayside (berth) at the port of destination.
DDU DDU - Delivered Duty Unpaid (... named place of destination)
DDU - Delivered Duty Unpaid (... named place of destination) Under these terms, the vendor will only have fulfilled his obligations when the merchandise is made available at the specified location in the destination country, not cleared for importation. All damage and loss risk of the merchandises shall be assumed by the vendor up to the point of delivery at the specified location, except for the duties, taxes and other official charges incurred on the importation, plus the costs and risks for clearance from customs formalities. These terms can be used for any mode of transportation, including multimodal.
DDP DDP - Delivered Duty Paid (... named place of destination)
Under these terms, the vendor shall only fulfilled his obligations when the merchandise has been made available at the specified location in the final destination country, cleared for importation. The vendor shall assume all risks and costs, including duties and taxes and other charges levied in importation. Contrary to "EXW" terms, which presents the minimum amount of obligations to the vendor, the "DDP" mode places the maximum amount of risk on the vendor. "DDP" terms should not be used when the vendor is not able, either directly of indirectly, to obtain the documents needed for importing the merchandise. These terms can be used for any mode of transportation, including multimodal.