| EXW |
Ex Works (named
place) |
|
- "Ex Works" means that the seller fulfils his obligation to
deliver when he has made the goods available at his premises (i.e. works, factory,
warehouse, etc.) to the buyer. In particular, he is not responsible for loading the goods
on the "vehicle" provided by the buyer or for clearing the goods for export,
unless otherwise agreed. The buyer bears all costs and risks involved in taking the goods
from the seller's premises to the desired destination. This term thus represents the
minimum obligation for the seller.
- This term should not be used when the buyer cannot carry out directly or indirectly
the export formalities. In such circumstances, the FCA
term should be used.
|
| FCA |
Free Carrier (named
place) |
|
- "Free Carrier" means that the seller fulfils his obligation
to deliver when he has handed over the goods, cleared for export, into the charge of the
carrier named by the buyer at the named placed 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, according to commercial practice, the seller's
assistance is required in making the contract with the carrier (such as in rail or air
transport), the seller may act at the buyer's risk and expense.
- This term may be used for any mode of transport, including multimodal transport.
|
| FAS |
Free Alongside
Ship (named port of shipment) |
|
- "Free Alongside Ship" means that the seller fulfils his
obligation to deliver when the goods have been placed alongside the vessel on the quay or
in lighters 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 buyer to clear the goods for export. It should not be used when the
buyer cannot carry out directly or indirectly the export formalities.
-
- This term can only be used for sea or inland waterway transport.
|
| FOB |
Free On Board (named
port of shipment) |
|
- "Free On Board" means that the seller fulfils his obligation
to deliver when the goods have passed over 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 only be used for sea or inland waterway transport. When the ship's
rail serves no practical purpose, such as in the case of roll-on/roll-off or container
traffic, the FCA term is more appropriate
to use.
|
| CFR |
Cost and
Freight (named port of destination) |
|
- "Cost and Freight" means that the seller must pay the costs
and freight necessary to bring the goods to the named port of destination but the risk of
loss of or damage to the goods, as well as any additional costs due to events occurring
after the time the goods have been delivered on board the vessel is transferred from the
seller to the buyer when the goods pass the ship's rail in the port of shipment. The CFR
term requires the seller to clear the goods for export.
- This term can only be used for sea and inland waterway transport. When the ship's
rail serves no practical purpose, such as in the case of roll-on/roll-off or container
traffic, the CPT term is more appropriate
to use.
|
| CIF |
Cost, Insurance
and Freight (named port of destination) |
|
- "Cost, Insurance and Freight" means that the seller has the
same obligations as under CFR but with
the addition that he has to procure marine insurance against the buyer's risk of loss of
or damage to the goods during the carriage. The seller contracts for insurance and pays
the insurance premium. The buyer should note that under the CIF term the
seller is only required to obtain insurance on minimum coverage. The CIF
term requires the seller to clear the goods for export.
- This term can only be used for sea and inland waterway transport. When the ship's
rail serves no practical purposes such as in the case of roll-on/roll-off or container
traffic, the CIP term is more appropriate
to use.
|
| CPT |
Carriage Paid
To (named place of destination) |
|
- "Carriage Paid To..." means that the seller pays the freight
for the carriage of the goods to the named destination. This risk of loss of or damage to
the goods, as well as any additional costs due to events occurring after the time the
goods have been delivered to the carrier is transferred from the seller to the buyer when
the goods have been delivered into the custody of the carrier. "Carrier"
means any person who, in a contract or carriage, undertakes to perform or to procure the
performance of carriage, by rail, road, sea, air, inland waterway or by a combination of
such modes. If subsequent carriers are used for the carriage to the agreed destination,
the risk passes when the goods have been delivered to the carrier. The CPT
term requires the seller to clear the goods for export.
- This term may be used for any mode of transport including multimodal transport.
|
| CIP |
Carriage and Insurance
Paid to (named place of destination) |
|
- "Carriage and Insurance Paid to..." means that the seller has
the same obligations as under CPT but
with the addition that the seller has to procure cargo insurance against the buyer's risk
of loss of or damage to the goods during the carriage. The seller contracts for insurance
and pays the insurance premium. The buyer should note that under the CIP
term the seller is only required to obtain insurance on minimum coverage. The CIP
term requires the seller to clear the goods for export.
- This term may be used for any mode of transport including multimodal transport.
|
| DAF |
Delivered At
Frontier (named place) |
|
- "Delivered At Frontier" means that the seller fulfils his
obligation to deliver when the goods have been made available, cleared for export, at the
named point and place at the frontier, but before the customs border of the adjoining
country. The term "frontier" may be used for any frontier
including that of the country of export. Therefore, it is of vital importance that the
frontier in question be defined precisely by always naming the point and place in the
term.
- The term is primarily intended to be used when goods are to be carried by rail or
road, but it may be used for any mode of transport.
|
| DES |
Delivered Ex
Ship (named port of destination) |
|
- "Ex Ship" means that the seller fulfils his obligation to
deliver when the goods have been made available to the buyer on board the ship uncleared
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.
- This term can only be used for sea or inland waterway transport.
|
| DEQ |
Delivered Ex
Quay (duty paid) (named port of destination) |
|
- "Delivered Ex Quay (duty paid)" means that the seller fulfils
his obligation to deliver when he has made the goods available to the buyer on the quay
(wharf) at the named port of destination, cleared for importation. The seller has to bear
all risks and costs including duties, taxes and other charges or delivering the goods
thereto.
- This term should not be used if the seller is unable directly or indirectly to
obtain the import license. If the parties wish the buyer to clear the goods for
importation and pay the duty the words "duty unpaid" should be
used instead of "duty paid". If the parties wish to exclude
from the seller's obligation some of the costs payable upon importation of the goods (such
as value added tax (VAT)), this should be made clear by adding words to this effect:
"Delivered ex quay, VAT unpaid (named port of destination)".
- This term can only be used for sea or inland waterway transport.
|
| DDU |
Delivered Duty
Unpaid (named place of destination) |
|
- "Delivered Duty Unpaid" means that the seller fulfils his
obligation to deliver when the goods have been made available at the named place in the
country of importation. The seller has to bear the costs and risks involved in bringing
the goods thereto, (excluding duties, taxes and other official charges payable upon
importation) as well as the costs and risks or carrying out customs formalities. The buyer
has to pay any additional costs and to bear any risks caused by his failure to clear the
goods for import in time. If the parties wish the seller to carry out customs formalities
and bear the costs and risks resulting therefrom, this has to be made clear by adding
words to this effect. If the parties wish to include in the seller's obligations some of
the costs payable upon importation of the goods (such as value added tax (VAT), this
should be made clear by adding words to this effect: "Delivered duty unpaid,
VAT paid, ... (named place of destination)".
- This term may be used irrespective of the mode of transport.
|
| DDP |
Delivered Duty
Paid (named place of destination) |
|
- "Delivered Duty Paid" means that the seller fulfils his
obligation to deliver when the goods have been made available at the named place in the
country of importation. The seller has to bear the risks and costs, including duties,
taxes and other charges of delivering the goods thereto, cleared for importation. Whilst
the EXW term represents the minimum
obligation for the seller, DDP represents the maximum obligation. This
term should not be used if the seller is unable directly or indirectly to obtain the
import license. If the parties wish the buyer to clear the goods for importation and to
pay the duty, the term DDU should be
used. If the parties wish to exclude from the seller's obligations some of the costs
payable upon importation of the goods (such as value added tax (VAT), this should be made
clear by adding words to this effect: "Delivered Duty Paid, VAT unpaid, ...
(named place of destination)".
- This term may be used irrespective of the mode of transport.
|
TERMS