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Incoterms 2000
EXW EX WORKS
(... named place) "Ex works" means the seller's only responsibility
is to make the goods available at the seller's premises, i.e., the works
or factory. The seller is not responsible for loading the goods on the
vehicle provided by the buyer unless otherwise agreed. The buyer bears
the full costs and risk involved in bringing the goods from there to the
desired destination. Ex works represents the minimum obligation of the
seller.
FCA FREE CARRIER
(... named place) This term has been designed to meet the requirements
of multimodal transport, such as container or roll-on, roll-off traffic
by trailers and ferries. It is based on the same name principle as F.O.B.
(free on board), except the seller fulfills its obligations when the goods
are delivered to the custody of the carrier at the named place. If no
precise place can be named at the time of the contract of sale, the parties
should refer to the place where the carrier should take the goods into
its charge. The risk of loss or damage to the goods is transferred from
seller to buyer at that time and not at the ship's rail. The term "carrier"
means 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. When a seller
has been furnished a bill of lading, way bill or carrier's receipt, the
seller duly fulfills its obligation by presenting such a document issued
by a carrier.
FAS FREE ALONGSIDE SHIP
(... named port of shipment) "F.A.S." or "free alongside
ship" requires the seller to deliver the goods alongside the ship
on the quay. From that point on, the buyer bears all costs and risks of
loss and damage to the goods. Unlike F.O.B., F.A.S. requires the buyer
to clear the goods for export and pay the cost of loading the goods.
FOB FREE ON BOARD
(... named port of shipment) Under "F.O.B." or "free on
board," the goods are placed on board the ship by the seller at a
port of shipment named in the sales agreement. The risk of loss of or
damage to the goods is transferred to the buyer when the goods pass the
ship's rail (i.e., off the dock and placed on the ship). The seller pays
the cost of loading the goods.
CFR COST AND FREIGHT
(... named port of destination) "CFR"requires the seller to
pay the costs and freight necessary to bring the goods to the named destination,
but the risk of loss or damage to the goods, as well as any cost increases,
are transferred from the seller to the buyer when the goods pass the ship's
rail in the port of shipment. Insurance is the buyer's responsibility.
CIF COST, INSURANCE AND FREIGHT
(... named port of destination) "CIF" is CFR. with the additional
requirement that the seller procure transport insurance against the risk
of loss or damage to goods. The seller must contract with the insurer
and pay the insurance premium. Insurance is generally more important in
international shipping than domestic shipping, because U.S. laws generally
hold a common carrier to be liable for lost or damaged goods.
CPT CARRIAGE PAID TO
(... named place of destination) This term means the seller pays the freight
for the carriage of the goods to the named destination. The risk of loss
or damage to the goods and any cost increases transfers from the seller
to the buyer when the goods have been delivered to the custody of the
first carrier, and not at the ship's rail. Accordingly, "freight/carriage
paid to" can be used for all modes of transportation, including container
or roll-on roll-off traffic by trailers and ferries. When the seller is
required to furnish a bill of lading, way bill, or carrier receipt, the
seller duly fulfills its obligation by presenting such a document issued
by the person contracted with for carriage to the main destination.
CIP CARRIAGE AND INSURANCE PAID
TO
(... named place of destination) This term is the same as "freight/carriage
paid to (CPT)" but with the additional requirement that the seller
has to procure transport insurance against the risk of loss or damage
to the goods during the carriage. The seller contracts with the insurer
and pays the insurance premium.
DAF DELIVERED AT FRONTIER
(... named place) "Delivered at frontier" means that the seller's
obligations are fulfilled when the goods have arrived at the frontier
but before the customs border of the country named in the sales contract.
The term is primarily used when goods are carried by rail or truck. The
seller bears the full cost and risk in delivering the goods up to this
point, but the buyer must arrange and pay for the goods to clear customs.
DES DELIVERED EX SHIP
(... named port of destination) Means the seller shall make the goods
available to the buyer on board the ship at the place named in the sales
contract. The seller bears the full cost and risk involved in bringing
the goods there. The cost of unloading the goods and any customs duties
must be paid by the buyer.
DEQ DELIVERED EX QUAY
(... named port of destination) Means the seller has agreed to make the
goods available to the buyer on the quay or the wharf at the place named
in the sales contract. The seller bears the full cost and risks in delivering
the goods to that point including unloading.
DDU DELIVERED DUTY UNPAID
(... named place of destination) Under these terms, the seller fulfills
his obligation to deliver when the goods have been available to the buyer
uncleared for import at the point or place of the named destination. The
seller bears all costs and risks involved in bringing the goods to the
point or place of named destination. There is no obligation for import
clearance.
DDP DELIVERED DUTY PAID
(... named place of destination) represents the seller's maximum obligation.
The term "DDP." is generally followed by words indicating the
buyer's premises. It notes that the seller bears all risks and all costs
until the goods are delivered. This term can be used irrespective of the
mode of transport. If the parties wish to make clear that the seller is
not responsible for certain costs, additional word should be added (for
example, "delivered duty paid exclusive of VAT and/or taxes").
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