EXW (Ex Works)
Under the Ex Works incoterm, the seller has minimal obligations regarding shipping costs and responsibilities. The seller makes the goods available at their premises, while the buyer must handle all shipping elements, including collection, freight, delivery, duties, and GST. The risk transfers to the buyer upon collection from the seller's location, who bears all costs until final delivery.
FCA (Free Carrier)
With FCA terms, the seller provides the goods to a carrier designated by the buyer, who must also manage export clearance. From this point, all risks and costs, including terminal and loading charges at the origin, shift to the buyer, who is responsible for freight and any customs charges at the destination.
FAS (Free Alongside Ship)
In FAS shipments, the seller places the goods alongside the vessel at the designated port and handles export clearance. The seller covers all origin charges, including terminal fees, but the buyer must pay for loading onto the vessel and all subsequent charges.
FOB (Free On Board)
Under FOB terms, the seller is accountable for all origin charges, including loading onto the specified vessel. Once the goods are on board, the risk and costs transfer to the buyer, who then takes on freight, insurance, and all charges until final delivery.
CPT (Carriage Paid To)
With CPT, the seller is responsible for making the goods available at a specified destination. The buyer must cover additional transportation, duties, and taxes, as well as any insurance during transit.
CFR (Cost and Freight)
CFR means the seller covers all costs, including freight to the destination port. However, risk transfers to the buyer once the goods are loaded onto the vessel. Although the seller pays for freight, the buyer should consider insuring the shipment and will handle remaining charges at the destination.
CIP (Carriage & Insurance Paid To)
Similar to CPT, CIP requires the seller to provide the goods at a named destination and secure insurance for transit. The buyer is responsible for additional transportation and any duties and taxes upon arrival.
CIF (Cost, Insurance and Freight)
CIF terms are like CFR, but the seller is also responsible for insurance until the goods reach the destination port. The buyer assumes all risks and associated charges once the goods arrive.
DPU (Delivered At Place Unloaded)
DPU requires the seller to deliver and unload the goods at the buyer's specified location. It is the only incoterm that mandates unloading, applicable to any mode of transport.
DAP (Delivered At Place)
DAP signifies that the seller delivers the shipment to a specified location. The seller covers all costs until delivery, while the buyer is responsible for unloading and any applicable duties and taxes.
DDP (Delivered Duty Paid)
Under DDP, the seller assumes full responsibility for delivering the goods to the final destination, import-cleared. This term minimizes costs and risks for the buyer, who only needs to unload the goods upon arrival.
