Glossary

Glossary

EXW - Ex Works (named place)

Seller - Goods are made available at their location, completing requirements of the transaction. They have minimum responsibility, risks, and obligations. Buyer - Responsible for all charges with potential greater responsibility of risks for bringing goods to final destination.

FCA – Free Carrier (named place)

Seller - Goods are cleared for export and handed to first carrier appointed by the buyer at named place. Pays for carriage to named point of destination. Buyer - Selects named location.

FAS – Free Alongside Ship (named loading port)

Seller -Places goods alongside ship at named port and clears goods for export.

FOB – Free On Board (named loading port)

Seller - Loads goods on board ship appointed by buyer and clears goods for export. Buyer - Advises seller of ship and port where goods are to be loaded.

CFR – Cost and Freight (named destination port)

Seller - Pays costs and freight to bring goods to the port of destination. Buyer - Bears risk of goods once goods have crossed ship's rail.

CIF – Cost, Insurance and Freight (named destination port)

Seller - Pays costs and freight to bring goods to the port of destination. Also procures and pays for insurance for buyer. Buyer - Bears risk of goods once goods have crossed ship's rail.

CPT – Carriage Paid To (named place of destination)

Seller - Pays for carriage of freight to point of destination named by buyer. Risk transfers to buyer upon delivery of first carrier. Buyer - Selects point of destination, bears risk when goods are handed to first carrier.

CIP – Carriage and Insurance Paid to (named place of destination)

Seller: Pays for carriage and insurance to named destination point. Risk transfers when goods are handed over buyer upon delivery of first carrier. Buyer: Selects point of destination, bears risk when goods are handed to first carrier.

DDP - Delivered Duty Paid (named destination place)

Seller: Responsible for delivery, duty and transportation costs of goods to named destination/country.

DAP – Delivered at Place

Seller: Pays for carriage to named place with exception of import clearance costs, assumes all risks of goods prior to unloading of goods by buyer. Buyer: Names destination, unloads goods from seller and assumes risks upon unloading.

DAT – Delivered at Terminal

Seller: Pays for carriage to terminal, except for import clearance costs, assumes all risks of goods prior to unloading of goods at terminal.