Seller delivers goods to the carrier at agreed place of delivery and pays transport to the named destination. Risk is transferred at place of delivery, whereas seller pays for transport to the destination.
Carrier and Insurance Paid to (CIP)
The seller pays for the carriage and insurance to the named destination point, but risk passes when the goods are handed over to the first carrier.
Cost and Freight (CFR)
Seller must pay the costs and freight to bring the goods to the port of destination. Although the risk is transferred to the buyer, when the goods are loaded on the ship.
Cost, Insurance and Freight (CIF)
It’s exactly like CFR except that the seller must in addition procure and pay for the insurance.
Delivered at Place (DAP)
Seller delivers goods to disposal of buyer on arriving means of transport, at agreed place. Seller assumes risk until goods are made ready for unloading from the arriving means of transport.
Delivered at Terminal (DAT)
Seller delivers goods unloaded at a specified place inside agreed terminal. Risk is transferred as soon as goods have been unloaded.
Delivered Duty Place (DDP)
The seller is responsible for delivering the goods to the named place in the country of the buyer, and pays all costs in bringing the goods to the destination.
Ex Works (EXW)
The seller makes the goods available at its location, so the buyer can
take over all the transportation costs and also bears the risks of bringing the
goods to their final destination.
Free Alongside Ship (FAS)
The seller must place the goods alongside the ship at the named port, the risk of loss or damage to the goods passes when the goods are alongside the ship, and the buyer bears all the costs from that moment on.
Free Carrier (FCA)
The seller hands over the goods into the disposal of the first carrier. After the buyer takes over all the costs, the risk passes when the goods are handed over to the first carrier.
Free on Board (FOB)
The seller must load the goods on board of the ship, nominated by the buyer. Cost and risk are divided when the goods are actually on board.
