Ex works is when the Exporter places the goods at the disposal of the importer at the exporter’s premises or at another named place (i.e., works, factory, warehouse, etc.).
The exporter does not need to load the goods on any collecting vehicle. Nor does it need to clear them for export, where such clearance is applicable.
2. FCA – Free Carrier
The exporter delivers the goods to the carrier or another person nominated by the importer at the exporter’s premises or another named place.
The parties are well advised to specify as explicitly as possible the point within the named place of delivery, as the risk passes to the buyer at that point.
3. FAS – Free Alongside Ship
The exporter delivers when the goods are placed alongside the vessel (e.g., on a quay or a barge) nominated by the importer at the named port of shipment.
The risk of loss of or damage to the goods passes when the products are alongside the ship. The importer bears all costs from that moment onwards.
4. FOB – Free On Board
The exporter delivers the goods on board the vessel nominated by the importer at the named port of shipment or procures the goods already so delivered.
The risk of loss of or damage to the goods passes when the products are on board the vessel. The importer bears all costs from that moment onwards.
5. CFR – Cost and Freight
The exporter delivers the goods on board the vessel or procures the goods already so delivered.
The risk of loss of or damage to the goods passes when the products are on board the vessel.
The exporter must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.
6. CIF – Cost, Insurance and Freight
The exporter delivers the goods on board the vessel or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the products are on the ship.
The exporter must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.
The exporter also contracts for insurance cover against the importer’s risk of loss of or damage to the goods during the carriage.
The importer should note that under CIF the exporter is required to obtain insurance only on minimum cover. Should the importer wish to have more insurance protection, it will need either to agree as much expressly with the exporter or to make its own extra insurance arrangements.
7. CPT – Carriage Paid To
The exporter delivers the goods to the carrier or another person nominated by the exporter at an agreed place (if any such site is agreed between parties).
The exporter must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination.
8. CIP – Carriage And Insurance Paid To
The exporter has the same responsibilities as CPT, but they also contract for insurance cover against the importer’s risk of loss of or damage to the goods during the carriage.
The importer should note that under CIP the exporter is required to obtain insurance only on minimum cover. Should the importer wish to have more insurance protection, it will need either to agree as much expressly with the exporter or to make its own extra insurance arrangements.
9. DAP – Delivered At Place
The exporter delivers when the goods are placed at the disposal of the importer on the arriving means of transport ready for unloading at the named place of destination.
The exporter bears all risks involved in bringing the goods to the named place.
10. DPU – Delivered At Place Unloaded
DPU replaces the former Incoterm® DAT (Delivered At Terminal). The exporter delivers when the goods, once unloaded are placed at the disposal of the importer at a named place of destination.
The exporter bears all risks involved in bringing the goods to, and unloading them at the named place of destination.
11. DDP – Delivered Duty Paid
The exporter delivers the goods when the goods are placed at the disposal of the importer, cleared for import on the arriving means of transport ready for unloading at the named place of destination.
The exporter bears all the costs and risks involved in bringing the goods to the place of destination. They must clear the products not only for export but also for import, to pay any duty for both export and import and to carry out all customs formalities.
