EXW       - Ex Works (Insert named place of delivery)

Seller delivers when it places the goods at the disposal of the buyer at the seller’s premises or at another named place (i.e. works, factory, warehouse etc). The seller does not need to load the goods on any collecting vehicle, nor does it need to clear the goods for export.

Seller responsibility: EXW represents the minimum obligation for the seller.

 

FCA        - Free Carrier (Insert named place of delivery)

Seller delivers goods to the carrier or another person nominated by the buyer at the sellers premises or another named place. FCA requires the seller to clear the goods for export.

Seller responsibility: The seller has no obligation to clear the goods for import, pay import duty or carry out any import customs formalities.

 

FAS        - Free Alongside Ship (Insert named port of shipment)

Seller delivers when the goods are placed alongside the vessel (e.g. on a quay or a barge) nominated by the buyer at the named port of shipment. The risk of loss or damage to the goods passes when the goods are alongside the ship, and the buyer bears all costs from that moment onwards. Where the goods are in containers, it is typical for the seller to hand the goods over to the carrier at a terminal and not alongside the vessel. In such situations, the FAS rule would be inappropriate, and the FCA rule should be used.

Seller responsibility: FAS requires the seller to clear the goods for export. However the seller has no obligation to clear the goods for import, pay any import duty or carry out any import customs formalities.

 

FOB        - Free On Board (Insert named port of shipment)

Seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment. The risk of loss or damage to the goods passes when the goods are on board the vessel, and the buyer bears all costs from that moment onwards.

Seller Responsibility: FOB requires the seller to clear the goods for export. However, the seller has no obligation to clear the goods for import, pay any import duty or carry our any import customs formalities.

 

CFR        - Cost And Freight (Insert named port of destination)

Seller delivers the goods on board the vessel . The risk of loss or damage to the goods passes when the goods are on board the vessel. The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination. CFR may not be appropriate where goods are handed over to the carrier before they are on board the vessel, for example goods in containers, which are typically delivered at a terminal. In such circumstances, the CPT rule should apply. When CFR is used the seller fulfils its obligation to deliver when it hands the goods over to the carrier and not when the goods reach the place of destination.

Seller responsibility: CFR requires the seller to clear the goods for export. However, the seller has no obligation to clear the goods for import, pay any import duty or carry our any import customs formalities.

 

CIF          - Cost Insurance And Freight (Insert named port of destination)

Seller delivers the goods on board the vessel. The risk of loss or damage to the goods passes when the goods are on board the vessel. The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination. The seller also contracts for insurance cover against the buyer’s risk of loss or damage to the goods during the carriage. When CIF is used the seller fulfils its obligation to deliver when it hands the goods over to the carrier and not when the goods reach the place of destination.

Seller responsibility: CIF requires the seller to clear the goods for export. However, the seller has no obligation to clear the goods for import, pay any import duty or carry our any import customs formalities.

 

CPT        - Carriage Paid To (Insert named place of destination)

Seller delivers the goods to the carrier or another person nominated by the seller at an agreed place and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination. When CPT is used the seller fulfils its obligation to deliver when it hands the goods over to the carrier and not when the goods reach the place of destination.

Sellers responsibility: CPT requires the seller to clear the goods for export. The seller has no obligation to clear the goods for import, pay any import duty or carry our any import customs formalities.

 

CIP         - Carriage and Insurance Paid To (Insert named place of destination)

Seller delivers the goods to the carrier or another person nominated by the seller at an agreed place and that the seller must contract for an pay the costs of carriage necessary to bring the goods to the named place of destination. The seller also contracts for insurance cover against the buyers risk of loss or damage to the goods during the carriage. When CIP is used the seller fulfils its obligation to deliver when it hands the goods over to the carrier and not when the goods reach the place of destination.

Sellers responsibility: CIP requires the seller to clear the goods for export. The seller has no obligation to clear the goods for import, pay any import duty or carry out any import customs formalities.