Makes the seller responsible to place the goods at disposal of the buyer at seller’s facilities or any other named place. EXW terms do not obligate the seller to clear exports or load goods into the collecting vehicle. With this term, the seller has minimum obligation and buyer must bear all costs and risk involved on pick up and transportation of goods from seller’s premises. This term can have one variation that mentions explicit that seller must clear customs or load goods into the vehicle and its similar to FCA term.
It is the firs of F terms, it means that the seller delivers the goods cleared for export to the nominated carrier at the named place. The buyer must nominate the carrier. If the place of delivery is at the sellers premises, seller must load the goods. If delivery takes place in a different place, the seller is not responsible for unloading. The term carrier refers to any party who is in charge of the contract of carriage and will transport the goods by any mode of transportation.
In CPT the seller clears goods for exports and delivers to the nominated carrier at the agreed place of shipment at origin. In this point, the risk is transferred to the seller. The seller is responsible for contracting and paying the main carriage until the agreed named place of destination. The contract of carriage must specify origin and destination. This term can be used for any mode of transportation.This term is popular in Ro-Ro and airfreight shipments. If there is more than one mode of transportation, the risk is transferred when goods have been delivered to the first carrier.
Under CIP terms, the seller clears the goods for export and is responsible for deliver the goods at the agreed place of shipment. The seller must pay the cost of carriage, but seller’s risk ends at place of shipment. The seller must procure the minimum insurance until the named place of destination. The buyer has the option to contract additional insurance. The risk is passed when the goods are received by the first carrier. This term can be used for any mode of transportation.
By using DAT, Delivery at Terminal, the seller clears the goods for exports and is responsible until the goods have arrived at named terminal on destination. Terminal can be understood as quay, warehouse, container yard or any road for rail, air or road. The goods must be unloaded, and it is important to mention clearly the name of the terminal in detail. This term is used with any mode of transportation. It is recommended that seller’s contract with their forwarding company mirrors the contract of sale
In DAP, Delivery at Place, the sellers is responsible for moving the goods from origin until their delivery at the disposal place agreed with the buyer ready for unloading at destination. It is recommended to agree in the point of destination as clear as possible. The seller bears the risk until delivery of goods to the named place and should get a contract of carriage that matches the contract of sell until the agreed delivery point. If there is an extra fee for unloading the goods, the seller cannot charge it to the buyer. This term can be used for any mode of transportation.
Under DAP the seller is responsible for all costs associated until the seller delivers the goods to the buyer, cleared for import at named place of destination. In DDP the seller does not pay for unloading the goods. It is important to mention the exact name of the place of destination. This term can be used for any mode of transportation including multimodal. The term is used under the assumption that the seller is capable of clear customs at destination.
In FAS the seller clears the goods for export and delivers them alongside the vessel at port of origin. This means that the seller is responsible for all cost and risk to the goods up to point of delivery. This term applies only for ocean or inland waterway ports. It is recommended to use this term with the precise location at the port, especially in large ports with multiple locations. FAS term is frequently used in the term of sale of bulk commodities like grains or oil. In case the cargo is containerized, it is common to deliver the goods at carrier container yard or terminal (FCA term will fit best in this case).
By using FOB the seller clear the goods for exports and delivers when the goods have passed the ship’s rail at the agreed port. This term is only used for water transportation either sea or inland water. If both parties do not agree to have goods delivered on board, then FCA is the term to be used.This term was commonly used when commodities were sold and carrier confirmed the reception of goods “on board”. When goods are packed in containerized cargo, then FCA is the most recommended term to use. Because goods will be delivered in the container terminal prior to be loaded on the vessel. The term is used in commodities like oil, bulk cargo or grain. There is a common misuse of this term when goods are loaded on a truck, in that case FCA is the right term to use. In FOB, origin terminal handling charge and all other cost associated to move the goods on board are paid by the seller.
In CIF terms, the seller clears the goods at origin places the cargo on board and pays for insurance until port of discharge at minimum cover. Even though the seller pays for insurance during the main carriage, the risk is transferred to the buyer at time the goods are on board. The term is used for ocean and inland waterway transportation only