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CFR (Cost and FReight) - means that the seller must pay the costs and freight necessary to bring the goods to the named port of destination but the risk of loss of or damage to the goods as well as nay additional costs due to events occurring after the time the goods have been delivered on board the vessel, is transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment. The CFT term requires the seller to clear the goods for export.
CIF (Cost, Insurance and Freight) - means that the seller has the same obligations as under CFR but with the addition that he has to procure marine insurance against the buyer's risks of loss of or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium.
CIP (Carriage and Insurance Paid to) - means that the seller has the same obligations under CPT but with the addition that seller has to procure cargo insurance against the buyer's risk of loss of or damage to the goods during the carrieage. The seller contracts for insurance and pays the insurance premium.
CPT (Carriage Paid To) - means that the seller pays the freight for the carriage of the goods to the named destination. The risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered to the carrier, is transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier.
DDP (Delivered Duty Paid) - means that the seller fulfils his obligation to deliver when the goods have made available at the named palce in the country of importation. The seller has to bear the risks and costs, including duties, taxes and other charges of delivering the goods thereto, cleared for importation. While the EXW term represents the minimum obligation for the seller, DDP represents the maximum obligation.
DDU (Delivered Duty Unpaid) - means that the seller fulfils his obligation to deliver when the goods have made available at the named place in the country of importation. The seller has to bear the cost and risks involved in bringing the goods thereto (excluding duties, taxes and other charges payable upon importation as well as the cost and risks of carrying out customs formalities).
DEQ (Delivered Ex Quay - duty paid) - means that the seller fulfils his obligation to deliver when he has made the goods available to the buyer on board the quay (wharf) at the named port of destination, cleared for importation. The seller has to bear all risks and cost including duties, taxes and other charges of delivering the goods thereto.
DES (Delivered Ex Ship) - means that the seller fulfils his obligation to deliver when the goods have been made available to the buyer on board the ship uncleared for import at the named port of destination. The seller has to bear all the costs and risks involved in bringing the goods to named port of destination.
EXW (EX Works) - means that the seller fulfills his obligation to deliver when he has made the goods available at his premises (i.e. works, factory, warehouse, etc) to the buyer, he is not responsible for loading the goods on the vehicle provided by the buyer or for clearing the goods for export, unless otherwise agreed. The buyer bears all cost and risks involved in taking the goods from the seller's premises to the desired destination. This terms thus represents the minimum obligation for the seller.
FAS (Free AlongSide) - means that the seller fulfils his obligation to deliver when the goods have been placed alongside the vessel on the quay or in lighters at the named port of shipment. This means that the buyer has to beall all costs and risks of loss of or damage to the goods from that moment.
FCA (Free CArrier) - means that the seller fulfill his obligation to deliver when he handed over the goods, cleared for export, into the charges of the carrier named by the buyer at the named place or point. If no precise point is indicated by the buyer, the seller may choose within the place or range stipulated where the carrier shall take the goods into his charge. When, according to commercial practice, the seller's assistance is required in making the contract with the carrier (such as in rail or air transport) the seller may act at the buyer's risk and expense.
FOB (Free On Board) - means that the seller fulfils his obligation to deliver when the goods have passed over the named port of shipment. This means that the buyer has to bear all costs ad risks of loss of or damage to the goods from that point. The FOB terms require the seller to clear the goods for export.
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