"The basic freight forwarding terms are EXW, FCA, FAS, FOB, CFR, CIF, CPT, CIP, DAF, DES, DEQ, DDU, DDP.
These 13 trade terms, from left to right, have increasing obligations for the seller and vice versa for the buyer. In other words, among the above mentioned trade terms, the seller has the least responsibility under EXW, while the seller has the most responsibility under DDP.
EXW Factory Delivery
It means that when the seller puts the goods at the disposal of the buyer at its location or other designated places (such as workshops, factories or warehouses), that is, the delivery is completed, and the seller does not clear the goods for export or load the goods onto any means of transport.
The term is the seller to take responsibility for the smallest term.
FCA Goods to Carrier
It means that the seller as long as the goods in the designated location to the buyer's designated carrier, and for export clearance procedures, that is, complete delivery.
It should be noted that the choice of place of delivery has an impact on the obligation to load and unload the goods at that location. The term can be used for all modes of transport, including multimodal transport.
FAS Free Alongside Ship
means that the seller completes delivery of the goods by handing them over the side of the ship at the named port of shipment. The buyer must assume all risk of loss of or damage to the goods from that point forward.
FOB
means name of goods + quantity of goods + unit price + FOB + port of shipment. The transfer of risk is at the time of crossing the ship's rail. As the goods do not cross the ship's rail the liability should be borne by the seller's company.
If the boom breaks during lifting, and the cement does not fall into the sea but into the ship's deck, the risk is transferred to the buyer, and the responsibility should be borne by the buyer's company.
CFR Cost plus Freight
It means that the seller completes the delivery when the goods cross the ship's rail at the port of shipment, and the seller has to pay the freight and expenses required to transport the goods to the designated port of destination.
However, the risk of loss of or damage to the goods after delivery, as well as any additional costs due to various events, is transferred from the seller to the buyer.
The term applies only to sea or inland waterway transport. If the parties do not intend to deliver over the side of the vessel, the CPT term shall be used.
CIF Cost, Insurance and Freight
means that the seller completes delivery when the goods cross the ship's rail at the port of shipment. This term is only applicable to sea and inland waterway transport.
If the parties do not intend to deliver over the ship's rail then the CIP term should be used.
CPT Carriage Paid To (named place of destination)
means that the seller delivers the goods to the carrier nominated by the seller (Carrier Paid to Carrier), but the seller must also pay the freight charges for transporting the goods to the destination. That is, the buyer assumes all risks and other costs after delivery.
CIP Freight and Insurance
It means that the seller delivers the goods to the international freight forwarder appointed by the seller, but the seller must also pay the freight charges for transporting the goods to the destination, i.e., the buyer bears all the risks and additional costs after the seller delivers the goods.
The term can be applied to all modes of transport, including multimodal transport.
DAF Delivered at Frontier
Delivery is completed when the seller places at the border the goods not yet unloaded from the conveyance in which they were delivered at the disposal of the buyer at a designated place and specific point of delivery, in front of the customs border of the adjoining country, where the goods are cleared for export but not yet cleared for import.
DES Delivery on board at port of destination
Delivery of goods on board a ship at the named port of destination is at the buyer's disposal, but the seller completes the delivery when the goods are not cleared for import.
This term can only be used when the goods are shipped by sea or inland waterway transport or multimodal transport on board the vessel at the port of destination.
DEQ Delivered at Quay of Destination
It means that as long as the seller will be the goods in the designated location to the buyer's designated carrier, and for the export clearance procedures, that is, the completion of delivery.
It should be noted that the choice of the place of delivery has an impact on the obligation to load and unload the goods at that place. The term can be used for all modes of transport, including multimodal transport.
DDU Delivered Duty Unpaid
It means that the seller places the goods at the buyer's disposal at the named place of destination and completes the delivery without going through the import formalities or unloading the goods from the means of transport in which they were delivered.
The term applies to all modes of transport, but when the goods are delivered on board the ship or at the quay at the port of destination, the term DES or DEQ should be used.
DDP Delivered Duty Paid
It refers to the seller in the designated destination, for import customs clearance procedures, will be in the delivery of goods on the means of transport has not been unloaded handed over to the buyer, complete delivery.
Because the seller bears the greatest responsibility under the DDP terminology, this term should not be used if the seller cannot directly or indirectly obtain an import licence; if the parties wish the buyer to bear the risks and costs of importation, the DDU terminology should be used.
The term is applicable to all modes of transport, but when the goods are delivered on board a vessel or at a terminal in the port of destination, DES or DEQ terms should be used."
