INCOTERMS

1. Ex Works (EXW) (named place)

2. Free Carrier (FCA) (named place)

3. Free Alongside Ship (FAS) (named port of shipment)

4. Free On Board (FOB) (named port of shipment)

5. Cost and Freight (CFR) (named port of destination)

6. Cost, Insurance and Freight (CIF) (named port of destination)

7. Carriage Paid To (CPT) (named place of destination)

8. Carriage and Insurance Paid To (CIP) (named place of destination)

9. Delivered At Frontier (DAF) (named place)

10. Delivered Ex Ship (DES) (named port of destination)

11. Delivered Ex Quay (DEQ) (named port of destination)

12. Delivered Duty Unpaid (DDU) (named place of destination)

13. Delivered Duty Paid (DDP) (named place of destination)

1. EX WORKS (EXW)

"Ex Works" means that the seller delivers when he places the goods at the disposal of the buyer at the seller’s premises or another named place. (i.e. works,factory,warehouse etc.) not cleared for export and not loaded on any collecting vehicle.

This term thus represents the minimum obligation fort he seller and the buyer has to bear all costs and risks involved in taking the goods from the seller’s premises.

2. FREE CARRIER (FCA)

"Free Carrier" means that 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 and unloading the goods at that place. 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. “Carrier” means any person who, in a contract of carriage, undertakes to perform or to procure the performance of transport by rail, road, air, sea, inland waterway or by a combination of such modes.

3. FREE ALONGSIDE SHIP (FAS)

"Free Alongside ship" means that the seller delivers when the goods are placed alongside the vessel at the named port of shipment. This means that 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 the goods for export.
This is a reversal from previous incoterm versions which required the buyer to arrange for export clearance. This term can be used only for sea or inland waterway transport.

4. FREE ON BOARD (FOB)

"Free On Board" means that the seller delivers when the goods pass the ship’s rail at the named port of shipment. This means that 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.

5. COST and FREIGHT (CFR)

"Cost And Freight" means that 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 or damage to the goods, as well as any additional costs due to events ocurring 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 or inland waterway transport.

6. COST INSURANCE and FREIGHT (CIF)

"Cost, Insurance and Freight" means that 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 or damage to the goods, as well as any additional costs due to events ocurring after the time of delivery, are transferred from the seller to the buyer. However, in CIF the seller also has to procure marine insurance against the buyer’s risk of loss of or damage to the goods during the carriage.
The CIF term requires the seller to clear the goods for export.
This term can be used only for sea or inland waterway transport.

7. CARRIAGE PAID TO (CPT)

"Carriage Paid To" means that 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.
This means that the buyer bears all risks and any other costs occuring after the goods have been so delivered.
The CPT term requires the seller to clear the goods for export.
This term can be used irrespective of the mode of transport including multimodal transport.

8. CARRIAGE and INSURANCE PAID to (CIP)

"Carriage and Insurance Paid to" means that 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. This means that the buyer bears all risks and any additional costs occuring after the goods have been so delivered. However, in CIP the seller also has to procure insurance against the buyer’s risk of loss of or damage to the goods during the carriage.
The CIP term requires the seller to clear the goods for export.
This term can be used irrespective of the mode of transport including multimodal transport.

9. DELIVERED AT FRONTIER (DAF)

"Delivered At Frontier" means that 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 can be used irrespective of the mode of transport when the goods are to be delivered at a land frontier.

10. DELIVERED EX SHIP (DES)

"Delivered Ex Ship" means that 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.
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.

11. DELIVERED EX QUAY (DEQ)

"Delivered Ex Quay" means that 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 the 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 be used only when the goods are to be delivered by sea or inland waterway or multimodal transport on discharging from a vessel onto the quay in the port of destination.

12. DELIVERED DUTY UNPAID (DDU)

"Delivered Duty Unpaid" means that 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” 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.
This term can be used irrespective of the mode of transport.

13. DELIVERED DUTY PAID (DDP)

"Delivered Duty Paid" means that 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 the costs and risks involved in bringing the goods thereto including, where applicable any “duty” for import in the country of destination.
This term can be used irrespective of the mode of transport.