EXW Ex Works

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• The seller/exporter makes the goods available to the buyer in their own warehouse and is only responsible for packing the goods.

• The buyer/importer therefore bears all of the costs and responsibilities from the moment the goods cross the warehouse prior to loading. Insurance is not mandatory but should it be required it would be taken out by the buyer as they bear the risk.

 

FCA Free Carrier

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• The seller delivers the goods to an agreed place and bears the costs and risks up to the point of delivery of those goods at the agreed place, including the cost of export clearance. The seller is responsible for inland transport and export customs clearance unless the designated place is the seller’s premises (FCA warehouse), in which case the goods are delivered there and loaded onto the means of transport arranged by the buyer at the buyer’s expense.

• The buyer bears the costs from loading on board to unloading, including insurance if taken out because they bear the risk when the goods are loaded onto the first means of transport.

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FAS Free Alongside Ship

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• The seller delivers the merchandise at the loading dock of the port of origin and assumes the expenses, as well as the export customs procedures.

• The buyer manages the cargo on board, stowage, freight and other expenses until delivery at destination, including import clearance. It also assumes the risks once the merchandise is at the loading dock before being loaded onto the ship.

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FOB Free On Board

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• The seller bears the costs until the goods are loaded onto the ship, at which point the risks are transferred as well as responsibility for export clearance and costs at origin. The seller also arranges the transport although the buyer bears the cost.

• The buyer is responsible for the cost of freight, unloading, import clearance and delivery at destination as well as insurance should they take it out. The transfer of risk occurs when the goods are on board.

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CFR Cost and Freight

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• The seller is responsible for all costs until the goods arrive at the destination port, including export clearance, costs at origin, freight and usually unloading costs.

• The buyer is responsible for import procedures and transport to destination. They also bear the risks from the moment the goods are on board, hence, although it is not mandatory the buyer usually takes out insurance.

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CIF Cost, Insurance and Freight

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• The seller assumes, as in CFR, he must also take out insurance although the risk is transferred to the buyer once the merchandise is loaded on board.

• The buyer is the one who assumes the import costs and the internal transport to the destination.

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CPT Carriage Paid To

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• The seller bears the costs until the goods are delivered to an agreed place, i.e., they are responsible for all of the costs at origin, export clearance, the main transport and usually, costs at destination.

• The buyer is responsible for import procedures and insurance if taken out as it is not mandatory. The risk is transferred to the buyer once the goods are loaded onto the first means of transport arranged by the seller.

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CIP Carriage and Insurance Paid

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• The seller bears the costs up to delivery at an agreed place at destination, i.e., the costs at origin, export clearance, freight and also insurance which is mandatory.

• The importer is responsible for import clearance and delivery at destination and takes on the risk when the goods are loaded onto the first means of transport.

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DPU Delivered at place Unloaded

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• The seller bears the costs and risks arising at origin, packing, loading, export clearance, freight, unloading at destination and delivery at the agreed point.

• The buyer is responsible for import clearance procedures.

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DAP Delivered At Place

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• The seller bears all the costs and risks of the operation apart from import clearance and unloading at destination, i.e., all costs at origin, freight and inland transport.

• The buyer is only responsible for import clearance and unloading.

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DDP Delivered Duty Paid

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• The seller bears all costs and risks from packing and checking in their warehouses to delivery at final destination, including export and import clearance, freight and insurance, if taken out.

• The buyer only has to receive the goods and usually unloads them, although this can also be done by the seller.