Incoterms

EXW: Ex Works (followed by a place name) means that the shipment is entirely at the risk of the receiving party. Responsibility for documentation lies with the buyer of the shipment.

FCA: Free Carrier (followed by a place name) also assigns all transport risks to the receiving party. The difference from Ex Works is that risks are transferred at the moment the shipment is loaded. Responsibility for documentation lies with the seller of the shipment.

CPT: Carriage Paid To (followed by a place name) means that the sender is responsible up to the agreed location. In most cases involving air and sea freight, the destination (air)port is chosen for this purpose. From the arrival of the vessel or aircraft, costs are transferred to the buying party.

CIP: Carriage and Insurance Paid To (followed by a place name) is essentially the same as CPT. The only difference is that the buyer is required to obtain transport insurance.

DAP: Delivered At Place (followed by a place name) means that the shipment must be delivered by the selling party to the agreed place of destination. The delivery/unloading itself is not included in this.

DPU: Delivered at Place Unloaded (followed by a place name) is virtually the same as DAP, except the sending party is also responsible for unloading the shipment.

DDP: Delivered Duty Paid (followed by a place name) is the same as DPU, with the additional requirement that the sending party is responsible for customs clearance and the full financial settlement of the shipment. Any import duties and VAT will also be charged back to the sending party.

FAS: Free Alongside Ship (followed by a place name) means that the selling party must ensure the goods are placed alongside the vessel, i.e., on the quay. The buyer is responsible for loading the shipment onto the vessel.

FOB: Free on Board (followed by a place name) is used in sea freight when the sender is responsible for the pre-carriage and remains responsible until the shipment is loaded onto the vessel. This means that local port charges are for the account of the sending party, as is the preparation of documentation.

CFR: Cost and Freight (followed by a place name) applies when the supplier is responsible for and bears the costs up to the port of destination. The supplier ensures the shipment is loaded onto the vessel, handles the documentation, and covers the transit by sea. When the vessel arrives at the port of destination, the buying party will take over the shipment.

CIF: Cost, Insurance and Freight (followed by a place name) is virtually the same as CFR. The only difference is that the seller is required to obtain transport insurance for this shipment.