Below is a list of the most commonly used INCO terms. Should you not find the term you looking for or require more detailed information, please contact us.
CFR - Cost and Freight
Seller pays the cost and freight of the goods to the named port of destination. The buyer's risk begins once the goods pass over the ship's rail at the Port of Loading.
CIF - Cost, Insurance and Freight
Seller pays the cost, freight and insurance premium on behalf of the buyer.
CPT - Cost and Freight (....named port of destination)
the seller delivers the good to the carrier nominated by the seller. The seller must in turn pay the cost of carriage necessary to bring the goods to the named destination.
Thus the buyer bears all risks and any other costs occurring after the goods have been so delivered.
DDP - Delivered Duty Paid
Seller is required to pay all charges involved in delivering the goods to the buyer.
DDU - Delivered Duty Unpaid (...named port of destination)
Seller delivers the goods to buyer, not cleared for import, and not unloaded from any arriving means of transport at the named place of destination. The seller has to bear the costs and risks involved in bringing the goods thereto, other than, where applicable, any duties, taxes, and other charges for import in the country of destination.
DES - Delivered Ex Ship (...named port of destination)
the seller delivers when the goods are placed at the disposal of the buyer on board the carrier not cleared for import at the named port of destination. The seller has to bear all the costs of risks involved in bringing the goods to the named port of destination before discharging the goods.
EXW - Ex Works
Sellers only responsibility is to make goods available at his own premises. The buyer bears the full cost and risk in transporting the goods to the final destination.
FAS - Free Alongside Ship
Sellers obligations are fulfilled as soon as the goods are placed alongside the ship on the dock. The buyer bears all costs and risk from then on.
FOB - Free on Board
The seller responsibility is to put the goods on board the vessel as named in the sales contract. The risk transfers from seller to buyer as the goods pass over the ship's rail at the Port of Loading.
FCA - Fee Carrier (Named Port)
Once the goods are transferred into the custody of the Carrier, at the named port, the seller's obligation is met. The risk is then transferred from the seller to the buyer. the term Carrier is defined as " any person by whom or in whose name a contract of carriage by road, rail, air, sea or a combination of modes has been made"
