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First thing is that you should see what the contract is between the buyer and your company.
Customer is paying or not it is secondary.
1) EXW - Ex Works
This means, once you make ready of goods at your plant, it is the responsibility of the buyer to
arrange for transportation for picking up the cargo and the transportation cost to that extent will be his
responsibility.
In exports, this term will be used. That is once the exporter produces the material and ready for
export, he will organize a vehicle for transporting the goods to delivery to sea / airport. Till the cargo
unloaded at the respective port, it is the responsibility of the exporter to take care of the cargo. Once
it is unloaded at the port, then the responsibility will be passed on to buyer for which, the necessary
shipment information has to be given to the buyer
When the exporter exports his material, till the buyers port, it is the responsibility of the buyer and
whatever charges incurred till that destination will have to be incurred by the exporter, including
Insurance for the cargo
This is similar to sl.no.3 but the insurance part will be taken care of by the buyer
The exporter has to deliver the goods at buyers' warehouse and till that place whatever expenses he
incurred, will have to borne by the exporter excepting the duty payable at importer's customs.
6. Ex-factory
For instance Ex-factory means the responsibility and cost of the product is defined as outside the
gates of the factory. The customer will have to take responsibility outside the gates of the factory.
Group F – Main carriage unpaid
FCA – Free Carrier (named place)
The seller hands over the goods, cleared for export, into the custody of the first carrier
(named by the buyer) at the named place. This term is suitable for all modes of
transport, including carriage by air, rail, road, and containerised / multi-modal
transport.
FAS – Free Alongside Ship (named loading port)
The seller must place the goods alongside the ship at the named port. The seller must
clear the goods for export; this changed in the 2000 version of the Incoterms. Suitable
for maritime transport only.
FOB – Free on board (named loading port)
The seller must load the goods on board the ship nominated by the buyer, cost and
risk being divided at ship's rail. The seller must clear the goods for export. Maritime
transport only. It also includes Air transport when the seller is not able to export the
goods on the schedule time mentioned in the letter of credit. In this case the seller
allows a deduction of sum equivalent to the carriage by ship from the air carriage.
Unlo
Unload Entr
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Loa Expor Transp from ng Transp g Transpo
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Incoter d to t- duty ort to truck charg ort to charges rt to Insuran
from ms es
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the clearan and
k nt r's port origi origin' r's port importe ion
importe ce Taxe
n's s port r's port
rs' port s
port
EXW No No No No No No No No No No No No
FCA Yes Yes Yes No No No No No No No No No
FAS Yes Yes Yes Yes No No No No No No No No
FOB Yes Yes Yes Yes Yes No No No No No No No
CFR Yes Yes Yes Yes Yes Yes Yes No No No No No
CIF Yes Yes Yes Yes Yes Yes No No No Yes No No
CPT Yes Yes Yes Yes Yes Yes No No No No No No
CIP Yes Yes Yes Yes Yes Yes No No No Yes No No
DAF Yes Yes Yes Yes Yes Yes No No No No No No
DES Yes Yes Yes Yes Yes Yes No No No No No No
DEQ Yes Yes Yes Yes Yes Yes Yes No No No No No
DDU Yes Yes Yes Yes Yes Yes Yes Yes Yes No No No
DDP Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes