EXW

EX WORKS

Ex Works means that the vendor prepares the goods for the purchaser to collect at his premises or other agreed place (establishment, factory, storage warehouse etc.) without clearing it through customs for exportation and without loading it on the means of collection. This Incoterm involves the minimum commitment level for the vendor whereas the purchaser must take on all the expenses and risks involved in picking up the goods from such premises.

FCA

FREE CARRIER

Free Carrier means that the vendor hands the goods over, cleared through customs for exportation, to the carrier appointed by the purchaser in the place agreed. Pay particular attention to the fact that the chosen place of consignment is crucial for the loading and unloading arrangements of the goods in such place.

If the goods are consigned at the vendor's premises, the latter is responsible for the loading jobs. If the goods are consigned in another place, the vendor is not responsible for the unloading jobs.

FAS

FREE ALONGSIDE SHIP

Free Alongside Ship means that the vendor consigns the goods alongside the ship in the agreed port of shipment. 

The purchaser must therefore take on all the expenses and risks of loss or damage to the goods as of this moment. The goods are therefore intended cleared through customs for exportation on behalf of the vendor.

FOB

FREE ONBOARD VESSEL

Free On Board the vessel means that the vendor consigns the goods when they exceed the broadside of the ship in the agreed port of shipment. The purchaser must therefore take on all the expenses and the risks of loss or damage to the goods as of this moment. In FOB the goods are cleared through customs for exportation on behalf of the vendor.

CFR (C&F)

COST & FREIGHT

Cost & Freight means that the vendor consigns the goods when they exceed the broadside of the ship in the port of shipment. The vendor must take on all the expenses involved in transporting the goods to the agreed port of destination, but all the risks of loss or damage (including any additional expenses caused after this moment) are automatically transferred to the purchaser from the time of consignment of the goods.

In CFR the goods are cleared through customs for exportation on behalf of the vendor.

CIF

COST INSURANCE FREIGHT

Cost Insurance Freight means that the vendor consigns the goods when they exceed the broadside of the ship in the port of shipment. The vendor must take on all the expenses involved in transporting the goods to the agreed port of destination, but all the risks of loss or damage (including  any additional expenses caused after this moment) are automatically transferred to the purchaser from the time of consignment of the goods.

In CIF the vendor must also provide a marine insurance to the favour of the purchaser to cover the goods againts the risks of loss or damage during transport.

CPT

TRANSPORT PAID TO (agreed place of destination) 

Transport Paid To means that the vendor hands the goods over to the carrier designated by himself but in this case the vendor must take on all the expenses involved in transporting the goods to the agreed place of destination.

This means that the purchaser takes on all the risks and any other expense involved after it has been consigned.

CIP

CARRIAGE INSURANCE PAID TO (agreed place of destination) 

Carriage Insurance Paid to means that the vendor hands the goods over to the carrier designated by himself but in this case the vendor must take on all the expenses involved in transporting the goods to the agreed place of destination.

This means that the purchaser takes on all the risks and any other expense involved after it has been consigned. 

In CIP the vendor must also provide an insurance policy to the favour of the purchaser to cover the goods againts all risks of loss or damage during transport.

DAF

DELIVERED AT FRONTIER (agreed place)

The vendor hands the goods over to the purchaser, cleared through customs for exportation, but not cleared through customs for importation (non unloaded from the means that transported it) in the place and point agreed at the border, but before the customs border of the adjoining country.

The wording may be used to indicate any border, including that of the country of exportation.

For this reason it is important to precisely define the border involved in the DAF wording and always to specify the point and place of consignment.

DES

DELIVERED EX SHIP (agreed port of destination)

In Ex Ship the vendor consigns the goods, not cleared through customs for importation, handidng it over to the purchaser onboard the ship in the agreed port of destination.

The vendor must take on all the expenses and risks involved in transporting the goods up to the agreed port of destination, before unloading.

DEQ

DELIVERED EX QUAY (agreed port of destination)

The vendor consigns the goods, not cleared through customs for importation, handing them over to the purchaser on the quay in the agreed port of destination.

The vendor must take on all the expenses and risks involved in transporting the goods up to the port of destination and relative unloading onto the quay (wharf).

In DEQ the clearance of the goods for importation and the payment of the formalities, duties, taxes and any other expense to which the goods may be subject for importation are to the charge of the purchaser.

DDU

DELIVERED DUTY UNPAID (agreed place of destination)

DDU means that the vendor consigns the goods, handing it over to the purchaser, not cleared through customs for importation and not unloaded from the means of transport, in the agreed place of destination, but he is not responsible for any customs duties possibly involved in clearing the goods through customs in the country of destination.

These customs duties are to the charge of the purchaser. The purchaser must also take on all the expenses and risks caused if the latter should fail to clear the goods through customs for importation in time.

DDP

DELIVERED DUTY PAID (agreed place of destination)

DDP means that the vendor consigns the goods, handing them over to the purchaser, cleared through customs for importation and not unloaded from the means of transport in the agreed place of destination.

The vendor must take on all the expenses and risks involved in transporting the goods in such place, including any customs duties possibly involved to clear the goods through customs for importation in the country of destination.