EXW – EX WORKS (…named place): seller delivers when he places the goods at the disposal of the buyer at the seller’s premises or another named place
(factory, warehouse, etc.). Goods are not cleared for export and not loaded on any collecting vehicle.
The EXW term represents the minimum obligation for the seller. The buyer bears all costs and risks involved in taking the goods from the seller’s premises.
FCA – FREE CARRIER (…named place): seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the named place. It should be noted that the chosen place of delivery has an impact on the obligations of loading and unloading the goods at the named place. If delivery occurs at the seller’s premises, the seller is responsible for loading. If delivery occurs any other place, the seller is not responsible for unloading. “Carrier” means any person who, in a contract of carriage, undertakes to perform or procured the performance of transport by rail, road, air, sea, inland waterway or by a combination of such modes.
The FCA term may be used irrespective of the mode of transport, including multimodal transport.
FAS – FREE ALONSIDE SHIP (…named port of shipment): seller delivers when the goods are placed alongside the vessel at the named port of shipment. This means the buyer has to bear all costs and risks of loss of or damage to the goods from that moment.
The FAS term requires the seller to clear the goods for export. This term can be used only for sea or inland waterway transport.
FOB – FREE ON BOARD (…named port of shipment): seller delivers when the goods pass the ships’ rail at the named port of shipment. This means the buyer has to bear all costs and risks of loss of or damage to the goods from that port.
The FOB term requires the seller to clear the goods for export. This term can be used only for sea or inland waterway transport. If the parties do not intend to deliver the goods across the ships’s rail, the FCA term should be used.
CFR – COST AND FREIGHT (…named port of destination): seller delivers when goods pass the ship’s rail in the port of shipment. The term means the seller must pay the costs and freight necessary to bring the goods to the named port of destination. The risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are the responsibility of the buyer.
The CFR term requires the seller to clear the goods for export. This term can be used only for sea and inland waterway transport. If the parties do not intend to deliver the goods across the ship’s rail, the CPT term should be used.
CIF – COST INSURANCE AND FREIGHT (…named port of destination): seller delivers when the goods pass the ship’s rail in the port of shipment. The seller pays the costs and freight required to bring the goods to the named port of destination. The risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer. In CIF the seller also has to provide marine insurance against the buyer’s risk of loss or damage to the goods during the carriage. Under this term the seller is required only to provide insurance on minimum coverage. If the buyer wants to have greater coverage, he needs to agree as much with the seller or make extra insurance arrangements at his own expense.
The CIF term requires the seller to clear the goods for export. This term can be used only for sea and inland waterway transport. If the parties do not intend to deliver the goods across the ship’s rail, the CIP Term should be used.

Additional information can be found in “Incoterms 2000” published by ICO Publishing, Inc.CPT – CARRIAGE PAID TO (…named place of destination): seller delivers the goods to the carrier nominated by him. The seller must also pay the cost of carriage necessary to bring the goods to the named destination. This means the buyer bears all risks and any other costs occurring after the goods have been so delivered. “Carrier” is any person who, in a contract of carriage, undertakes to perform or to procure the performance of transport, transport by rail, road, air, sea, inland waterway or combination of these modes. Should subsequent carriers be used for the carriage to the agreed destination, risk passes when the goods have been delivered to the first carrier.
The CPT term requires the seller to clear the goods for export. This term may be used with any mode of transport including multimodal transport.
CIP – CARRIAGE INSURANCE PAID TO (…named place of destination): the seller delivers the goods to the carrier nominated by him, but the seller must in addition pay the cost of carriage necessary to bring the goods to the named destination. This means the buyer bears all the risks and any additional costs occurring after the goods have been so delivered. However, in CIP the seller also has to procure insurance against the buyer’s risk of loss or damage to the goods during the carriage. “Carrier” is any person who, in a contract of carriage, undertakes to perform or to procure the performance of transport, by rail, road, air, sea, inland waterway or by a combination of such modes. Should subsequent carriers be used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier.
The CIP term requires the seller to clear the goods for export. This term may be used irrespective of the mod of transport, including multimodal transport.
DAF – DELIVERED AT FRONTIER (…named place): seller delivers when the goods placed at the disposal of the buyer on the arriving means of transport. The goods are not unloaded or cleared for export. They are not cleared for import at the named point and place at the frontier. The term “frontier” may be used for any frontier including that of the country of export. Therefore, it is of vital importance the frontier in question be defined precisely, always naming the point and place in the term.
The DAF term is used for any mode of transport when goods are to be delivered at a land frontier.
DES – DELIVERED EX SHIP (…named port of destination): seller delivers when the goods are placed at the disposal of the buyer on board the ship. The goods are not cleared for import at the named port of destination. The seller bears all the costs and risks involved in bringing the goods to the named port of destination before discharging.
The DES term used only when the goods are to be delivered by sea or inland waterway or multimodal transport on a vessel in the port of destination.
DEQ – DELIVERED EX QUAY (…named port of destination): seller delivers when the goods are placed at the disposal of the buyer. The goods are not cleared for import on the quay (wharf) at the named port of destination. The seller bears costs and risks involved in bringing goods to the named port of destination and discharging the goods on the quay (wharf). The DEQ term requires the buyer to clear the goods for import and pay for all formalities, duties, taxes and other charges upon import.
This term can be used only when the goods are delivered by sea or inland waterway or multimodal transport on discharging from a vessel onto the quay (wharf) in the port of destination.Additional information can be found in “Incoterms 2000” published by ICO Publishing, Inc.DEQ – DELIVERED EX QUAY (…named port of destination): seller delivers when the goods are placed at the disposal of the buyer. The goods are not cleared for import on the quay (wharf) at the named port of destination. The seller bears costs and risks involved in bringing goods to the named port of destination and discharging the goods on the quay (wharf). The DEQ term requires the buyer to clear the goods for import and pay for all formalities, duties, taxes and other charges upon import.
This term can be used only when the goods are delivered by sea or inland waterway or multimodal transport on discharging from a vessel onto the quay (wharf) in the port of destination
DDU – DELIVERED DUTY UNPAID (…named place of destination): seller delivers the goods to the buyer, not cleared for import, and not unloaded from any arriving means of transport at the named place of destination. The seller bears the costs and risks involved in bringing the goods thereto, other than, where the risks of the carrying out of customs formalities, and the payment of formalities, customs duties, taxes, and other charges) for import in the country of destination. The “duty” is borne by the buyer in addition to any costs and risks caused by his failure to clear the goods for import in time.
This term may be used irrespective of the mode of transport.
DDP – DELIVERED DUTY PAID (…named place of destination): seller delivers the goods to the buyer, cleared for import, not unloaded from any arriving means of transport at the named destination. The seller bears all the costs and risks involved in bringing the goods to the named destination including any “duty” (this term includes the responsibility for and the risk of carrying out customs formalities and payment of any formalities, customs duties, taxes, and other charges) for import in the country of destination.
This term is used for all modes of transport, however when delivery takes place in the port of destination on board the vessel or on the quay (wharf), terms DES or DEQ should be used.