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Term

Meaning

Carriage Risks Cost to be transferred transferred arranged


by the buyer When the goods are at the disposal of buyer When the goods are at the disposal of buyer

Modes of transport

EXW-Ex works (named place)

Seller delivers when he places the goods at the disposal of the buyer at the sellers place or another named place (Work factory warehouse) Not cleared for export and not loaded on any collecting vehicle.

FCA-free carrier(named place)

Seller delivers the goods cleared for the export to the carrier nominated by the buyer at the named place FAS-Free Seller delivers when Alongside the goods are placed Shipment(named alongside the vessel at port of the named port of shipment) shipment Requires seller to clear the goods for exports FOB-Free On Seller delivers when Board(named the goods pass the port of ship rail at the named shipment) port of shipment Requires seller to clear the goods for exports CFR-cost and Seller delivers when freight (named the goods pass the port of ships rail of the port destination) of shipment Requires seller to clear the goods for exports

By the buyer or by seller on behalf of the buyer By the buyer

When the goods are delivered to the carrier at the named place When the goods are place alongside the ship

When the goods are delivered to the carrier at the named place When the goods are placed alongside ship

Any mode

Only for sea or inland waterways

By the Buyer

When the goods pass the ships rail

When the goods pass the ships rail

Only for sea or inland waterways

By the seller

When the goods pass the ships rail

CIF-Cost insurance Freight(named port of destination)

Seller delivers when the goods pass the ships rail of the port of shipment Requires seller to clear the goods for exports

By seller along with insurance for the buyers risk

When the goods pass the ships rail

At the port of destination, buyer paying such costs as are not for the sellers account under the contract of carriage At the port of destination, buyer paying such costs as are not for the sellers account under the contract of carriage

Only for sea or inland waterways

Only for sea or inland waterways

CPT-carriage paid to(named place of destination)

Seller delivers the goods to the carrier nominated by the buyer and also pay the cost necessary to pay the cost of carriage to bring the goods to the named destination Seller delivers the goods to the carrier nominated by the buyer and also pays the cost of carriage to bring the goods to the named destination.

By the seller

When the goods are delivered to carrier

CIP-Carriage and insurance paid(named place of destination)

By the seller along with insurance for the buyers risk

When the goods are delivered to carrier

At the port of destination, buyer paying such costs as are not for the sellers account under the contract of carriage At the port of destination, buyer paying such costs as are not for the sellers account under the contract of carriage When the goods are delivered at frontier

Any mode including multimodal

Any mode including multimodal

DAF-Delivered at frontier(named place)

DES-Delivered Ex ship(port of destination)

Seller delivers when the goods are placed at the disposal of the buyer on the arriving mean of the transport not unloaded, cleared for export, but not cleared for import at the named point & place at frontier but before the custom borders of the country. Seller delivers when the goods are placed at the disposal of the buyer on board, the ship not cleared for import, at the named port of destination

By the seller

When the goods are delivered at frontier

Any mode including multimodal

By the seller

When the goods are at the disposal of buyer on board the ship.

When the goods are at the disposal of buyer on board the ship.

DEQ- delivery Ex Quay(named port of destination)

Seller delivers when the goods are placed at the disposal of the buyer not cleared for import on the Quay (Wharf)

By the seller

When the goods are at the disposal of buyer on the Quay

When the goods are at the disposal of buyer on the Quay

Only for sea or inland waterways or multi modal transport on a vessel in the port of destination(i.e. last mode should be waterway) Only for sea or inland waterways or multi modal transport on discharging from a vessel onto the quay

DDU- delivered duty unpaid(named place of destination)

DDP-Delivered Duty paid

Seller delivers the goods to the buyer not cleared for import and not unloaded from any arriving mean at the named place of destination. Seller delivers the goods to the buyer, cleared from the import, and not unloaded from any arriving means of transport at the named place of destination

By the seller

When the goods are at the disposal of buyer

When the goods are at the disposal of buyer

in the port of destination Used irrespective of the mode of transport

By the seller

When the goods are at the disposal of buyer

When the goods are at the disposal of buyer

Used irrespective of the mode of transport

Carrier: means any person who. In a contract of the carriage, undertakes to perform the performance of the transport by rail, road, air, or any other or by combination of such modes. Note: the term Frontier may be used for any frontier including that of the country of export. Hence, it is vital that the frontier is defined precisely by always naming the point and place in the term. IMP NOTE: 1. Under EXW seller has minimum risk only making the goods available at his own premises. 2. Under F terms, and under FCA unless or other wise agreed, the seller arranges and pays for the pre-carriage in the country of export 3. Under C terms the seller arranges for the main carriage but without the risk of the main carriage 4. Under D terms the sellers cost/risk is maximized because he must make the goods available upon arrival at the agreed destination