EXW (Ex Works)
Seller
fulfills the obligation to deliver when he or she has made the
goods available at his/her premises (i.e., works, factory,
warehouse, etc.) to the buyer. In particular, the seller is
not responsible for loading the goods in 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.
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FCA (Free Carrier)
Seller fulfills
their obligation when he or she has handed over the goods,
cleared for export, into the charge of the carrier named by
the buyer at the named place or point. If no precise point is
indicated by the buyer, the seller may choose, within the
place or range stipulated, where the carrier should take the
goods into their charge.
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FAS (Free Alongside
Ship)
Seller fulfills 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.
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FOB (Free On Board)
Seller fulfills his or her 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 to loss of or damage to the goods from
that point. The FOB term requires the seller to clear the
goods for export.
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CFR (Cost and Freight)
Seller pays the costs and freight necessary to bring the goods
to the named port of destination, Terms of Sale but the risk
of loss of or damage to the goods, as (continued) 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.
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CIF (Cost, Insurance
and Freight)
Seller has the same obligations as under the CFR but
also has to procure marine insurance against the buyer's risk
of loss or damage to the goods during the carriage. The seller
contracts for insurance and pays the insurance premium. The
CIF term requires the seller to clear the goods for export.
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CPT (Carriage Paid To)
Seller pays the freight for the carriage of the goods to
the named destination. 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 to the carrier,
is transferred from the seller to the buyer when the goods
have been delivered into the custody of the carrier. If
subsequent carriers are used for the carriage to the agreed
upon destination, the risk passes when the goods have been
delivered to the first carrier. The CPT term requires the
seller to clear the goods for export.
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CIP (Carriage and
Insurance Paid To)
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 required to obtain
insurance only on minimum coverage. The CIP term requires the
seller to clear the goods for export.
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DAF (Delivered At
Frontier)
Seller fulfill their obligation to deliver when the goods
have been made available, cleared for export, at the named
point and placed at the frontier, but before the customs Terms
of Sale border of the adjoining country.
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DDU (Delivered Duty
Unpaid)
Seller fulfills 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 of carrying out customs
formalities. The buyer has to pay any additional costs and to
bear any risks caused by failure to clear the goods for in
time.
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DDP (Delivered Duty
paid)
Seller fulfills 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, clear for importation. While
the EXW term represents the minimum obligation for the seller,
DDP represents the maximum.
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DES (Delivered Ex Ship)
Seller fulfills his/her 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 destination.
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DEQ (Delivered Ex Quay,
[Duty Paid])
When the goods
have been 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 of delivering the goods thereto.
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Cash in Advance
Upfront cash to exporters before shipment.
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Letter of Credit (L/C)
A
letter issued by a bank authorizing the bearer to draw a
stated amount of money from the issuing bank, its branches, or
other associated banks or agencies.
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Open Account
An
unpaid credit order.
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Consignment
Payments
deferred until goods sold.
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Telegraphic Transfer (T/T)
Electronic transfers of funds through banks.
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