incoterms
options

EXW
(Ex Works)
                                           

FCA
(Free Carrier)                                                       


CPT
(Carriage Paid To)

CIP
(Carriage & insurance Paid to)

DAT
(Delivered At Terminal)

 

 

DAP
(Delivered At Place)

 

 

 

 

DDP
(Delivered Duty Paid)


 

FAS
(Free Alongside Ship - named port of
shipment)

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FOB
(Free On Board - named port of shipment)

 


 

CFR
(Cost and Freight)

CIF
(Cost, Insurance & Freight)

The buyer bears all costs and risks involved in taking the goods from the seller's premises to the desired
destination. The seller's obligation is to make the goods available at his premises (works, factory, warehouse).
This term represents minimum obligation for the seller. This term can be used across all modes of transport.

The seller's obligation is to hand over the goods, cleared for export, into the charge of the carrier named by
the buyer at the named place or point. If no precise point is indicated by the buyer, the seller may choose
within the place or range stipulated where the carrier shall take the goods into his charge. When the seller's
assistance is required in making the contract with the carrier the seller may act at the buyers risk and
expense. This term can be used across all modes of transport.

The seller pays the freight for the carriage of goods to the named destination. The risk of loss or damage to
the goods occurring after the delivery has been made to the carrier is transferred from the seller to the buyer.
This term requires the seller to clear the goods for export and can be used across all modes of transport.


The seller has the same obligations as under CPT but has the responsibility of obtaining insurance against
the buyer's risk of loss or damage of goods during the carriage. The seller is required to clear the goods for
export however is only required to obtain insurance on minimum coverage. This term requires the seller to
clear the goods for export and can be used across all modes of transport.

New Term - May be used for all transport modes
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
quay, warehouse, container yard or road, rail or air terminal. Both parties should agree the terminal and if
possible a point within the terminal at which point the risks will transfer from the seller to the buyer of the
goods. If it is intended that the seller is to bear all the costs and responsibilities from the terminal to another
point, DAP or DDP may apply.

Responsibilities
•  Seller is responsible for the costs and risks to bring the goods to the point specified in the contract
•  Seller should ensure that their forwarding contract mirrors the contract of sale
•  Seller is responsible for the export clearance procedures
•  Importer is responsible to clear the goods for import, arrange import customs formalities, and pay import
  duty
•  If the parties intend the seller to bear the risks and costs of taking the goods from the terminal to another
  place then the DAP term may apply

New Term - May be used for all transport modes
Seller delivers the goods when they are placed at the disposal of the buyer on the arriving means of transport
ready for unloading at the named place of destination. Parties are advised to specify as clearly as possible
the point within the agreed place of destination, because risks transfer at this point from seller to buyer. If
the seller is responsible for clearing the goods, paying duties etc., consideration should be given to using
the DDP term.

Responsibilities
•  Seller bears the responsibility and risks to deliver the goods to the named place
•  Seller is advised to obtain contracts of carriage that match the contract of sale
•  Seller is required to clear the goods for export
•  If the seller incurs unloading costs at place of destination, unless previously agreed they are not entitled
  to recover any such costs
•  Importer is responsible for effecting customs clearance, and paying any customs duties

The seller is responsible for delivering the goods to the named place in the country of importation, including
all costs and risks in bringing the goods to import destination. This includes duties, taxes and customs
formalities. This term may be used irrespective of the mode of transport.

The seller must place the goods alongside the ship at the named port. The seller must clear the goods for
export. Suitable only for maritime transport but NOT for multimodal sea transport in containers (see
Incoterms 2010, ICC publication 715). This term is typically used for heavy-lift or bulk cargo.

The seller must load themselves the goods on board the vessel nominated by the buyer. Cost and risk are
divided when the goods are actually on board of the vessel (this rule is new!). The seller must clear the goods
for export. The term is applicable for maritime and inland waterway transport only but NOT for multimodal
sea transport in containers (see Incoterms 2010, ICC publication 715). The buyer must instruct the seller
the details of the vessel and the port where the goods are to be loaded, and there is no reference to, or
provision for, the use of a carrier or forwarder. This term has been greatly misused over the last three
decades ever since Incoterms 1980 explained that FCA should be used for container shipments.

The seller must pay the costs and freight required in bringing the goods to the named port of destination.
The risk of loss or damage is transferred from seller to buyer when the goods pass over the ship's rail in the
port of shipment. The seller is required to clear the goods for export. This term should only be used for sea
or inland waterway transport.

The seller has the same obligations as under CFR however he is also required to provide insurance against
the buyer's risk of loss or damage to the goods during transit. The seller is required to clear the goods for
export. This term should only be used for sea or inland waterway transport.