EXW EX WORKS (…named place) “Ex works” means the seller’s
only responsibility is to make the goods available at the seller’s premises,
i.e., the works or factory. The seller is not responsible for loading the
goods on the vehicle provided by the buyer unless otherwise agreed. The buyer
bears the full costs and risk involved in bringing the goods from there to the
desired destination. Ex works represents the minimum obligation of the
seller.
FCA FREE CARRIER (…named place) This term has been
designed to meet the requirements of multimodal transport, such as container
or roll-on, roll-off traffic by trailers and ferries. It is based on the same
name principle as F.O.B. (free on board), except the seller fulfils its
obligations when the goods are delivered to the custody of the carrier at the
named place. If no precise place can be named at the time of the contract of
sale, the parties should refer to the place where the carrier should take the
goods into its charge. The risk of loss or damage to the goods is transferred
from seller to buyer at that time and not at the ship’s rail. The term
“carrier” means any person by whom or in whose name a contract of carriage by
road, rail, air, sea, or a combination of modes has been made. When a seller
has been furnished a bill of lading, way bill or carrier’s receipt, the seller
duly fulfils it’s obligation by presenting such a document issued by a
carrier.
FAS FREE ALONGSIDE SHIP (…named port of shipment) Under
“F.A.S.” or “free alongside ship” requires the seller to deliver the goods
alongside the ship on the quay. From that point on, the buyer bears all costs
and risks of loss and damage to the goods. Unlike F.O.B., F.A.S. requires the
buyer to clear the goods for export and pay the cost of loading the goods.
FOB FREE ON BOARD (…named port of destination) Under
“F.O.B.” or “free on board,” the goods are placed on board the ship by the
seller at a port of shipment named in the sales agreement. The risk of loss of
or damage to the goods is transferred to the buyer when the goods pass the
ship’s rail (i.e., off the dock and placed on the ship). The seller pays the
cost of loading the goods.
CFR COST AND FREIGHT (…named port of destination) “CFR”
requires the seller to pay the cost 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 increased, are transferred from the seller to the buyer when the
goods pass the ship’s rail in the port of shipment. Insurance is the buyer’s
responsibility.
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.
CPT CARRIAGE PAID TO (…named place of destination). This
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
increase 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, way
bill, or carrier receipt, the seller duly fulfils its obligation by presenting
such a document issued by the person contracted with for carriage to the main
destination.
CIP CARRIAGE AND INSURANCE PAID TO (…named place of
destination). This 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.
DAF DELIVERED AT FRONTIER (…named place) “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.
DES DELIVERED EX SHIP (…named port of destination). Means
the seller shall make the goods available to t
