Incoterms
EXW- Ex Works
Seller informs buyer that the goods are ready on predetermined date. Buyer receives the goods and prepares documents necessary for export, implements customs procedures and imports the goods. Following EXW delivery of the goods, entire expenses and risks shall be borne by the buyer.
FCA – Free Carrier
Once Seller fulfills customs procedures and delivers goods to the initial carrier on predetermined date and place, delivery shall be deemed as performed. As of that date, all expenses and risks of the goods shall be to the account of the buyer. Freight costs just like all other expenses shall be borne by the buyer.
CPT – Carriage Paid To
Seller shall be liable to bear freight charges up to destination point. Once goods are delivered to initial carrier, all risks and expenses but freight-related ones shall be to the account of the buyer.
CIP – Carriage And Insurance Paid To
Seller shall have the same liabilities as in CPT. However, in addition thereto, seller shall be liable to make insured the goods for missing and damage risks during transportation.
DAT – Delivered At Terminal
The goods are delivered to the buyer at terminal point mutually agreed by the buyer and seller (may be a port, customs warehouse or buyer’s plant) whereas unloading expenses are borne by the seller. All customs procedures, expenses, duties fees and charges shall be borne by the buyer.
DAP – Delivered At Place
Goods are delivered to the buyer at mutually agreed unloading place by the buyer and seller (a port, customs point or airport) on transportation vehicle. Entire customs procedures, expenses, duties fees and charges shall be borne by the buyer. Seller shall undertake transportation costs / terminal-related damage risks.
DDP – Delivered Duty Paid
Seller prepares the goods in accordance with the contract and issues necessary documentation to be used in homeland and in the country of the Buyer. The Seller fulfills export and import customs procedures, provides transportation vehicle and undertakes freight charges. All risks and expenses until delivery are to the account of the seller. Delivery is made at predetermined place and date in the buyer’s country in a manner customs duty are settled. Buyer makes payment in accordance with contractual conditions and receives goods.
B) Rules related to marine and inland water transportation
FAS – Free Alongside Ship
Seller’s delivery liability ends once goods are placed at predetermined port alongside ship on the pier or barge. Buyer shall bear loading, unloading, shipment and insurance costs.
FOB – Free on Board
Seller, on predetermined date and place, loads goods on board of the vessel provided by the buyer. Once goods are on board, any and all damages, missing and risks shall be to the account of the Buyer. Seller issues export documentation and delivers goods by completing customs procedures.
CFR – Cost and Freight
Seller, by undertaking all risks and expenses, bring the goods to loading port. Seller fulfills customs procedures, undertakes freight charges, and loads the goods. As of that moment, entire risks and expenses but freight charges shall be borne by the Buyer.
CIF – Cost, Insurance and Freight
Seller undertakes insurance, freight and loading expenses and bring the goods to the loading port. Seller enters into an agreement with the marine agent and informs buyer that the goods are loaded on predetermined date and place. Seller undertakes insurance premium and makes goods insured in narrowest scope in accordance with the goods. Once goods are loaded on board, Buyer shall bear entire risks and expenses but the ones related to freight and insurance.