Incoterms

EXW: Ex Works
“Ex Works” means that the 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, where such clearance is applicable.

FCA: Free Carrier
“Free Carrier” means that the seller delivers the goods to the carrier or another person nominated by the buyer at the seller’s premises or another named place. The parties are well advised to specify as clearly as possible the point within the named place of delivery, as the risk passes to the buyer at that point.

CPT: Carriage Paid To
“Carriage Paid To” means that the 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.

CIP: Carriage And Insurance Paid To
“Carriage and Insurance Paid to” means that the seller delivers the goods to the carrier or another person nominated by the seller at an agreed place. The seller must contract for and pay the costs of carriage. The seller also contracts for insurance cover against the buyer’s risk of loss of or damage to the goods (minimum cover).

DAT: Delivered At Terminal
“Delivered at Terminal” means that the seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination. The seller bears all risks involved in bringing and unloading the goods.

DAP: Delivered At Place
“Delivered at Place” means that the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. The seller bears all risks involved.

DDP: Delivered Duty Paid
“Delivered Duty Paid” means that the seller delivers the goods when they are placed at the disposal of the buyer, cleared for import on the arriving means of transport ready for unloading. The seller bears all costs and risks, including export/import duties and customs formalities.

FAS: Free Alongside Ship
“Free Alongside Ship” means that the seller delivers when the goods are placed alongside the vessel nominated by the buyer at the named port of shipment. The risk of loss or damage passes when the goods are alongside the ship.

FOB: Free On Board
“Free On Board” means that the seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment. The risk of loss or damage passes when the goods are on board the vessel.

CFR: Cost and Freight
“Cost and Freight” means that the seller delivers the goods on board the vessel. The risk passes when the goods are on board. The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.

CIF: Cost, Insurance and Freight
“Cost, Insurance and Freight” means that the seller delivers the goods on board the vessel. The seller pays the costs and freight, and also contracts for insurance cover (minimum cover) against the buyer’s risk of loss or damage during carriage.