EXW – Ex Works

Seller makes the goods available for collection, suitably packaged, at the agreed location, which is usually the seller’s yard. Buyer assumes responsibility for the rest of the transport.

 

FCA – Free Carrier

Seller arranges transport to departure port or warehouse and completes export clearance. Buyer assumes responsibility once the goods are delivered to the named place. Can be used for all modes of transport, and popular with container shipments.

 

FAS – Free Alongside Ship

Like FCA, seller export clears the goods, and delivers to the terminal ready to be loaded to the vessel. Buyer is then responsible for loading on board, freight and onward costs / risks. Commonly used in bulk shipping e.g. grain.

 

FOB – Free On Board

Seller delivers the goods to the departure port, cleared for export and is responsible for loading the cargo on board the vessel. Costs and risks are transferred to the buyer once the goods are loaded on board.

 

CFR – Cost and Freight

Seller arranges and pays for the freight up to a named port at destination, however buyer assumes the risk once the cargo is loaded on board the vessel at origin port. Seller is not responsible for arranging marine insurance.

 

CIF – Cost, Insurance & Freight

CIF rules are the same as CFR, however the seller is also responsible for arranging marine insurance.

 

CPT – Carriage Paid To

Common in air freight shipments, CPT rule is similar to CFR where the seller is responsible for paying for transport to named place at destination, however the risk is transferred to the buyer once the goods are made available to the first carrier (airline, shipping line etc) as opposed to being loaded on board the sea vessel like with CFR.

 

CIP – Carriage and Insurance Paid To

CIP rules are the same as CPT, however the seller is also obligated to arrange and pay for suitable marine insurance.

 

DAP – Delivery At Place

Seller is responsible for all costs and risks involved with transporting goods to the named place at destination, often the buyer’s premises. Risk is transferred to buyer once the goods are made available for unloading, so buyer needs to arrange unloading at their own cost, plus import clearance, taxes and applicable duties.

 

DPU – Delivered At Place Unloaded

DPU rules are the same as DAP, however with these rules, the seller is responsible for costs and risk of unloading the goods at the named place of delivery. As with DAP, buyer is responsible for import clearance, taxes and applicable duties.

 

DDP – Delivered Duties Paid

Like DAP, the seller arranges transport to named place at destination, and buyer is responsible for unloading cargo, however with DDP rules, the seller is also responsible for arranging and paying for import clearance, taxes and any applicable duties.

 

For further information, or if you have any confusion over Incoterms, please contact us and we will be happy to assist.