EXW EX WORKS

FCA FREE CARRIER

FAS FREE ALONGSIDE SHIP

FOB FREE ON BOARD

CFR COST AND FREIGHT

CIF COST, INSURANCE AND FREIGHT

CPT CARRIAGE PAID TO

CIP CARRIAGE AND INSURANCE PAID TO

DAF DELIVERED AT FRONTIER

DES DELIVERED EX SHIP

DEQ DELIVERED EX QUAY

DDU DELIVERED DUTY UNPAID

DDP DELIVERED DUTY PAID

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Page 2 How to benefit from export merchant or agent?

Page 3 About Foreign Distributor & Import Agent

Page 4 Socialist Countries
Licensing and Join Venture

Page 5 Sales Procedure for Export Export Contract

Page 6 Incoterms describe the responsibilities of seller and buyer

<< This Page 7 Definitions of INCOTERMS trade terms

Page 8 About commercial disputes and arbitration

Page 9 About The World Trade Center Association

CFR requires the seller to pay the costs and freight necessary to bring the goods to the named destination, but the risk of loss or damage to the goods, as well as any cost increases, are transferred from the seller to the buyer when the goods pass the ship's rail at the port of shipment (i.e. off the dock and placed on the ship).

Insurance or marine insurance is the buyer's responsibility as well as stevedore charges at the named port of destination.

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CIF COST, INSURANCE AND FREIGHT
(... named port of destination)

CIF is CFR with the additional requirement that the seller procure transport insurance against the risk of loss or damage to goods.

The seller must contract with the insurer and pay the insurance premium. Insurance is generally more important in international shipping than domestic shipping, because U.S. laws generally hold a common carrier to be liable for lost or damaged goods.

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CPT CARRIAGE PAID TO
(... named place of destination)

This CPT term means the seller pays the freight for the carriage of the goods to the named destination.

The risk of loss or damage to the goods and any cost increases transfers from the seller to the buyer when the goods have been delivered to the custody of the first carrier, and not at the ship's rail.

Accordingly, "freight/carriage paid to" can be used for all modes of transportation, including container or roll-on roll-off traffic by trailers and ferries.

When the seller is required to furnish a bill of lading, airway bill, or carrier receipt, the seller duly fulfills its obligation by presenting such a document issued by the person contracted with for carriage to the main destination.

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This CIP term is the same as "freight/carriage paid to (CPT)" but with the additional requirement that the seller has to procure transport insurance against the risk of loss or damage to the goods during the carriage.

The seller contracts with the insurer and pays the insurance premium.

"Delivered at frontier" means that the seller's obligations are fulfilled when the goods have arrived at the frontier but before the customs border of the country named in the sales contract.

The term is primarily used when goods are carried by rail or truck.

The seller bears the full cost and risk in delivering the goods up to this point, but the buyer must arrange and pay for the goods to clear customs.

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DES Means the seller shall make the goods available to the buyer on board the ship at the place named in the sales contract.

The seller bears the full cost and risk involved in bringing the goods there.

The cost of unloading the goods and any customs duties must be paid by the buyer.

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DEQ Means the seller has agreed to make the goods available to the buyer on the quay or wharf at the place named in the sales contract.

The seller bears the full cost and risks in delivering the goods to that point including unloading.

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Under these DDU terms, the seller fulfills his obligation to deliver when the goods have been available to the buyer "not cleared" for import at the point or place of the named destination.

The seller bears all costs and risks involved in bringing the goods to the point or place of named destination.

There is no obligation for import clearance. 

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DDP DELIVERED DUTY PAID
(... named place of destination)

DDP Represents the seller's maximum obligation.

The term "DDP" is generally followed by words indicating the buyer's premises.

It notes that the seller bears all risks and all costs until the goods are delivered.

This term can be used irrespective of the mode of transport.

If the parties wish to make clear that the seller is not responsible for certain costs, additional word should be added (for example, "delivered duty paid exclusive of VAT and/or taxes").