|
EXW - Ex-Works,
It means that the seller X has the goods ready for collection at his premises (Works, factory, warehouse, plant) on the date agreed upon. The buyer pays all transportation costs and also bears the risks for bringing the goods to their final destination. This term requires that the buyer must be able to carry out export formalities in the country of supply, these days almost impossible. Therefore in the vast majority of cases where terms are quoted EXW they actually intend the seller to carry our export formalities which means that the correct term is FCA (Seller's premises).
FCA - Free Carrier, The seller delivers the goods into the custody of the first carrier, and this is where risk passes from seller to buyer. The buyer pays for the transportation.
It can be used for all modes of transportation including multimodal transport, such as in shipping containers where the ship's rail plays no relevant part in determining a shipping point. FCA is also the term to use in place of FOB for airfreight transactions.
FAS - Free Alongside Ship,
It means that the seller pays for transportation of the goods to the port of shipment. The buyer pays loading costs, freight, insurance, unloading costs and transportation from the port of destination to his factory. The passing of risk occurs when the goods have been delivered to the quay at the port of shipment
FOB - Free On Board vessel, also commonly but incorrectly referred to as "Freight on Board". It means that the seller pays for transportation of the goods to the port of shipment, plus loading costs. The buyer pays freight, insurance, unloading costs and transportation from the port of destination to his factory. The passing of risks occurs when the goods pass the ship's rail at the port of shipment. Internationally the term specifies the port of loading.
CFR - Cost and Freight,It means that the seller pays for transportation to the port of shipment, loading and freight. The buyer pays for the insurance and transportation of the goods from the port of destination to his factory. The passing of risk occurs when the goods pass the ship's rail at the port of shipment which means that this term cannot be used for airfreight or land transport and also is inappropriate for most containerized sea shipments - the term CPT is the appropriate one for these.
CIF - Cost, Insurance and Freight,is a common term in a sales contract that may be encountered in international trading when ocean transport is used.
When a price is quoted CIF, it means that the selling price includes the cost of the goods, the freight or transport costs and also the cost of marine insurance. CIF is an international commerce term.
CPT - Carriage Paid To,
It can be used for all modes of transport including multimodal transport. The seller pays for the freight to the named point of destination. The buyer pays for the insurance. The passing of risk occurs when the goods have been delivered into the custody of the first carrier.
CIP - Carriage and Insurance Paid To, The passing of risk occurs when the goods have been delivered into the custody of the carrier. This means that the buyer bears all risk and any additional costs occurring after the goods have been so delivered .It is the same as CPT except that the seller also pays for the insurance.
DAF - Delivered At Frontier, It can be used when the goods are transported by rail and road. The seller pays for transportation to the named place of delivery at the frontier. The buyer arranges for customs clearance and pays for transportation from the frontier to his factory. The passing of risk occurs at the frontier.
DES - Delivered Ex-Ship, It means that the seller has to pay for the same as in CIF, but the passing of risk does not occur until the ship has arrived at the port of destination, but before the goods have been unloaded.
DEQ - Delivered Ex-Quay, It means the same as DES, but the passing of risk does not occur until the goods have been unloaded at the port of destination.
DDU - Delivered Duty Unpaid, It means that the seller pays for all transportation costs and bears all risk until the goods have been delivered, but does not pay for the duty.
DDP - Delivered Duty Paid, It means
that the seller pays for all transportation costs and bears
all risk until the goods have been delivered and pays the
duty.
If you require any other
information, contact us at
mgranizo@atlaslogistics.net
|
