ExWorks (EXW): the seller fulfills his obligations by having the
goods available for the buyer to pick up at his premises or another named place
(i.e. factory, warehouse, etc.). Buyer bears all risk and costs starting when he
picks up the products at the seller's location until the products are delivered
to his location. Seller has no obligation to load the goods or clear them for export.
Free Carrier (FCA): the seller delivers the goods export cleared
to the carrier stipulated by the buyer or another party authorized to pick up goods
at the seller's premises or another named place. Buyer assumes all risks and costs
associated with delivery of goods to final destination including transportation
after delivery to carrier and any customs fees to import the product into a foreign
country.
Carriage Paid To (CPT): seller clears the goods for export and
delivers them to the carrier or another person stipulated by the seller at a named
place of shipment. Seller is responsible for the transportation costs associated
with delivering goods to the named place of destination but is not responsible for
procuring insurance.
Carriage and Insurance Paid To (CIP): seller clears the goods for
export and delivers them to the carrier or another person stipulated by the seller
at a named place of shipment. Seller is responsible for the transportation costs
associated with delivering goods and procuring minimum insurance coverage to the
named place of destination.
Delivered at Terminal (DAT): seller clears the goods for export
and bears all risks and costs associated with delivering the goods and unloading
them at the terminal at the named port or place of destination. Buyer is responsible
for all costs and risks from this point forward including clearing the goods for
import at the named country of destination.
Delivered at Place (DAP): clears the goods for export and bears
all risks and costs associated with delivering the goods to the named place of destination
not unloaded. Buyer is responsible for all costs and risks associated with unloading
the goods and clearing customs to import the goods into the named country of destination.
Delivered Duty Paid (DDP): seller bears all risks and costs associated
with delivering the goods to the named place of destination ready for unloading
and cleared for import.
Free Alongside Ship (FAS): seller clears the goods for export and
delivers them when they are placed alongside the vessel at the named port of shipment.
Buyer assumes all risks/costs for goods from this point forward.
Free on Board (FOB): seller clears the goods for export and delivers
them when they are onboard the vessel at the named port of shipment. Buyer assumes
all risks/cost for goods from this moment forward.
Cost and Freight (CFR): seller clears the goods for export and
delivers them when they are onboard the vessel at the port of shipment. Seller bears
the cost of freight to the named port of destination. Buyer assumes all risks for
goods from the time goods have been delivered on board the vessel at the port of
shipment.
Cost, Insurance, and Freight (CIF): seller clears the goods for
export and delivers them when they are onboard the vessel at the port of shipment.
Seller bears the cost of freight and insurance to the named port of destination.
Seller's insurance requirement is only for minimum cover. Buyer is responsible for
all costs associated with unloading the goods at the named port of destination and
clearing goods for import. Risk passes from seller to buyer once the goods are onboard
the vessel at the port of shipment.