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EXW {+
the named place} |
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Ex Works |
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Ex means from. Works
means factory, mill
or warehouse, which
is the seller's
premises. EXW
applies to goods
available only at
the seller's
premises. Buyer is
responsible for
loading the goods on
truck or container
at the seller's
premises, and for
the subsequent costs
and risks. In
practice, it is not
uncommon that the
seller loads the
goods on truck or
container at the
seller's premises
without charging
loading fee.
In the quotation,
indicate the named
place (seller's
premises) after the
acronym EXW, for
example EXW Kobe and
EXW San Antonio.
The term EXW is
commonly used
between the
manufacturer
(seller) and
export-trader
(buyer), and the
export-trader
resells on other
trade terms to the
foreign buyers. Some
manufacturers may
use the term Ex
Factory, which means
the same as Ex
Works.
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FCA {+
the named point of
departure} |
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Free Carrier |
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The delivery of
goods on truck, rail
car or container at
the specified point
(depot) of
departure, which is
usually the seller's
premises, or a named
railroad station or
a named cargo
terminal or into the
custody of the
carrier, at seller's
expense. The point
(depot) at origin
may or may not be a
customs clearance
center. Buyer is
responsible for the
main
carriage/freight,
cargo insurance and
other costs and
risks.
In the air shipment,
technically
speaking, goods
placed in the
custody of an air
carrier is
considered as
delivery on board
the plane. In
practice, many
importers and
exporters still use
the term FOB in the
air shipment.
The term FCA is also
used in the RO/RO
(roll on/roll off)
services.
In the export
quotation, indicate
the point of
departure (loading)
after the acronym
FCA, for example FCA
Hong Kong and FCA
Seattle.
Some manufacturers
may use the former
terms FOT (Free On
Truck) and FOR (Free
On Rail) in selling
to export-traders.
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FAS {+
the named port of
origin} |
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Free Alongside Ship |
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Goods are placed in
the dock shed or at
the side of the
ship, on the dock or
lighter, within
reach of its loading
equipment so that
they can be loaded
aboard the ship, at
seller's expense.
Buyer is responsible
for the loading fee,
main
carriage/freight,
cargo insurance, and
other costs and
risks.
In the export
quotation, indicate
the port of origin
(loading) after the
acronym FAS, for
example FAS New York
and FAS Bremen.
The FAS term is
popular in the
break-bulk shipments
and with the
importing countries
using their own
vessels.
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FOB {+
the named port of
origin} |
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Free On Board |
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The delivery of
goods on board the
vessel at the named
port of origin
(loading), at
seller's expense.
Buyer is responsible
for the main
carriage/freight,
cargo insurance and
other costs and
risks.
In the export
quotation, indicate
the port of origin
(loading) after the
acronym FOB, for
example FOB
Vancouver and FOB
Shanghai.
Under the rules of
the INCOTERMS 1990,
the term FOB is used
for ocean freight
only. However, in
practice, many
importers and
exporters still use
the term FOB in the
air freight.
In North America,
the term FOB has
other applications.
Many buyers and
sellers in Canada
and the U.S.A.
dealing on the open
account and
consignment basis
are accustomed to
using the shipping
terms FOB Origin and
FOB Destination.
FOB Origin means the
buyer is responsible
for the freight and
other costs and
risks.
FOB Destination
means the seller is
responsible for the
freight and other
costs and risks
until the goods are
delivered to the
buyer's premises,
which may include
the import customs
clearance and
payment of import
customs duties and
taxes at the buyer's
country, depending
on the agreement
between the buyer
and seller.
In international
trade, avoid using
the shipping terms
FOB Origin and FOB
Destination, which
are not part of the
INCOTERMS
(International
Commercial Terms).
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CFR {+
the named port of
destination} |
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Cost and Freight |
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The delivery of
goods to the named
port of destination
(discharge) at the
seller's expense.
Buyer is responsible
for the cargo
insurance and other
costs and risks. The
term CFR was
formerly written as
C&F. Many importers
and exporters
worldwide still use
the term C&F.
In the export
quotation, indicate
the port of
destination
(discharge) after
the acronym CFR, for
example CFR Karachi
and CFR Alexandria.
Under the rules of
the INCOTERMS 1990,
the term Cost and
Freight is used for
ocean freight only.
However, in
practice, the term
Cost and Freight
(C&F) is still
commonly used in the
air freight.
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CIF {+
the named port of
destination} |
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Cost, Insurance and
Freight |
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The cargo insurance
and delivery of
goods to the named
port of destination
(discharge) at the
seller's expense.
Buyer is responsible
for the import
customs clearance
and other costs and
risks.
In the export
quotation, indicate
the port of
destination
(discharge) after
the acronym CIF, for
example CIF Pusan
and CIF Singapore.
Under the rules of
the INCOTERMS 1990,
the term CIF is used
for ocean freight
only. However, in
practice, many
importers and
exporters still use
the term CIF in the
air freight.
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CPT {+
the named place of
destination} |
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Carriage Paid To |
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The delivery of
goods to the named
place of destination
(discharge) at
seller's expense.
Buyer assumes the
cargo insurance,
import customs
clearance, payment
of customs duties
and taxes, and other
costs and risks.
In the export
quotation, indicate
the place of
destination
(discharge) after
the acronym CPT, for
example CPT Los
Angeles and CPT
Osaka.
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CIP {+
the named place of
destination} |
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Carriage and Insurance
Paid To |
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The delivery of
goods and the cargo
insurance to the
named place of
destination
(discharge) at
seller's expense.
Buyer assumes the
import customs
clearance, payment
of customs duties
and taxes, and other
costs and risks.
In the export
quotation, indicate
the place of
destination
(discharge) after
the acronym CIP, for
example CIP Paris
and CIP Athens.
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DAF {+
the named point at
frontier} |
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Delivered At Frontier |
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The delivery of
goods to the
specified point at
the frontier at
seller's expense.
Buyer is responsible
for the import
customs clearance,
payment of customs
duties and taxes,
and other costs and
risks.
In the export
quotation, indicate
the point at
frontier (discharge)
after the acronym
DAF, for example DAF
Buffalo and DAF
Welland.
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DES {+
the named port of
destination} |
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Delivered Ex Ship |
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The delivery of
goods on board the
vessel at the named
port of destination
(discharge), at
seller's expense.
Buyer assumes the
unloading fee,
import customs
clearance, payment
of customs duties
and taxes, cargo
insurance, and other
costs and risks.
In the export
quotation, indicate
the port of
destination
(discharge) after
the acronym DES, for
example DES Helsinki
and DES Stockholm.
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DEQ {+
the named port of
destination} |
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Delivered Ex Quay |
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The delivery of
goods to the quay
(the port) at
destination at
seller's expense.
Seller is
responsible for the
import customs
clearance and
payment of customs
duties and taxes at
the buyer's end.
Buyer assumes the
cargo insurance and
other costs and
risks.
In the export
quotation, indicate
the port of
destination
(discharge) after
the acronym DEQ, for
example DEQ
Libreville and DEQ
Maputo.
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DDU {+
the named point of
destination} |
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Delivered Duty Unpaid |
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The delivery of
goods and the cargo
insurance to the
final point at
destination, which
is often the project
site or buyer's
premises, at
seller's expense.
Buyer assumes the
import customs
clearance and
payment of customs
duties and taxes.
The seller may opt
not to insure the
goods at his/her own
risks.
In the export
quotation, indicate
the point of
destination
(discharge) after
the acronym DDU, for
example DDU La Paz
and DDU Ndjamena.
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DDP {+
the named point of
destination} |
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Delivered Duty Paid |
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The seller is
responsible for most
of the expenses,
which include the
cargo insurance,
import customs
clearance, and
payment of customs
duties and taxes at
the buyer's end, and
the delivery of
goods to the final
point at
destination, which
is often the project
site or buyer's
premises. The seller
may opt not to
insure the goods at
his/her own risks.
In the export
quotation, indicate
the point of
destination
(discharge) after
the acronym DDP, for
example DDP
Bujumbura and DDP
Mbabane
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