Inco Terms
| Term |
Description |
Mode |
| EXW |
Ex-Works |
All Modes |
| FCA |
Free Carrier (Named point) |
All Modes |
| FAS |
Free Alongside Ship |
Sea |
| FOB |
Free On Borad |
All Modes |
| CRF(C&F) |
Cost & Freight |
All Modes |
| CIF |
Cost, Insurance & Freight |
All Modes |
| CPT |
Carriage Paid To (Named place) |
All Modes |
| CIP |
Carriage, Insurance Paid To (Named place) |
All Modes |
| DAF |
Delivered At Frontier (Named place) |
Land |
| DES |
Delivered Ex-Ship |
Sea |
| DEQ |
Delivered Ex-Quay |
Sea |
| DDU |
Delivered Duty Unpaid (Named place) |
All Modes |
| DDP |
Delivered Duty Paid |
All Modes |
|
| 1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
| EXW (Ex-Works) |
| Costs |
 | |
|
|
|
|
|
|
|
|
|
|
|
|
| FCA (Free Carrier - Full Load) |
| Costs |
|
|
|
|
|
|
|
|
|
|
|
|
| FCA (Free Carrier - Part Load) |
| Costs |
|
|
|
|
|
|
|
|
|
|
|
|
| FAS (Free Alongside Ship) |
| Costs |
|
|
|
|
|
|
|
|
|
|
|
|
| FOB (Free On Board) |
| Costs |
|
|
|
|
|
|
|
|
|
|
|
|
| FOB & Stowed |
| Costs |
|
|
|
|
|
|
|
|
|
|
|
|
| CFR FO (Free Out) |
| Costs |
|
|
|
|
|
|
|
|
|
|
|
|
| CFR (Cost & Freight) |
| Costs |
|
|
|
|
|
|
|
|
|
|
|
|
| CFR (Cost Insurance Freight |
| Costs |
|
|
|
|
|
|
|
|
|
|
|
|
| CFR Landed |
| Costs |
|
|
|
|
|
|
|
|
|
|
|
|
| DES (Delivered Ex Ship) |
| Costs |
|
|
|
|
|
|
|
|
|
|
|
|
| DEQ (Delivered Ex Quay(Duty Paid)) |
| Costs |
|
|
SELLER PAYS DUTY AND IMPORT TAXES |
|
|
|
|
| DDP (Delivery Duty Paid Named place of desternation in the country if import) |
| Costs |
|
|
SELLER PAYS DUTY AND IMPORT TAXES |
|
|
|
|
| Key |
| Sellers Cost |
| Buyers Cost |
EXW Ex-Works
Seller's only
responsibility is to make goods available at their premises. No
responsibility for loading goods on buyer's vehicle or clearing them
for export unless agreed with buyer. Buyer bears full cost and risk of
taking goods from seller's works to destination. This is the minimum
obligation of seller.
FCA Free Carrier (named point)
Used
with any form of transport, ie, air, sea, road, rail etc. Similar to
FOB except seller fulfils obligations by delivering into the custody of
the carrier at named point. Seller must hand goods, cleared for export,
over to carrier at point nominated in the shipping terms. Where
delivery takes place at seller's premises, seller is responsible for
loading.
FAS Free Alongside Ship
Properly used
only for ocean or inland water transport. Seller responsible for
placing goods alongside ship on the quay or in lighters at nominated
port. Buyer bears all costs abd risks of loss or damage to goods from
this point. Unlike FOB, FAS requires buyer to clear goods for export.
FOB Free On Board
Properly used only
for ocean or inland water transport (but commonly used for airfreight
as well). Seller required to place goods on board ship at nominated
port in contract. Buyer assumes risk of loss/damage to the goods once
they pass ships rail. In other modes of transport, or if ships rails
are not point at which seller transfers ownership to buyer, ie, with
container or roll-on/roll-off cargo-FCA is closest equivalent term.
CFR (C&F) Cost & Freight
Seller
must clear goods for export and pay costs and freight to bring goods to
nominated destination in sales contract. Buyer assumes risk of loss or
damage, along with any cost increases, once goods pass ships rail in
port of shipment. Another term properly used only for transport by
water (sea or inland). CPT (Carriage Paid To) is closest equivalent for
non transport by water shipments.
CIF Cost, Insurance & Freight
Similar
to CFR except seller must insure goods against risk of loss or damage
during transit. Also applies only to transport by water (sea or
inland). CIP (Carriage, Insurance Paid To) is closest equivalent term
for other modes of transport.
CPT Carriage Paid To (Named place)
Can
be used with any form of transport, ie, air, sea, road, rail. Seller
must clear goods for export and pay costs and freight necessary to
carry to named destination. Buyer assumes risk of loss or damage to
goods, plus any cost increases, once first carrier has received goods.
CIP Carriage, Insurance Paid To (Named place)
As per CPT except seller must pay insurance.
DAF Delivered At Frontier (Named place)
Term
designed for rail or road transport but can be used when goods shipped
by any method. (Useful when shipping to bonded Customs Warehouse or
Free Trade Zone). Seller fulfils obligations once goods, cleared for
export, are made available at named point, which will be before
destination Customs border. Buyer must clear goods through Customs.
DES Delivered Ex-Ship
Term normally
used for commodity shipments by sea. Buyer assumes risks and costs once
ship reaches named destination, but before goods cleared for import.
DEQ Delivered Ex-Quay
Also normally
used for commodity shipments by sea. Buyer assumes risk and costs on
quay at named destination. Seller responsible for discharge costs.
Buyer responsible for import clearance.
DDU Delivered Duty Unpaid (Named place)
Seller
handles everything necessary to deliver goods to nominated point
(usually buyers premises) except Customs clearance at destination
country. Buyer pays duties/taxes.
DDP Delivered Duty Paid (Named place)
Same
as DDU except for fact that seller is responsible for Customs clearance
and seller is responsible for payment of duties/taxes. Common
alternative is "DDP exclusive of duties/taxes" whereby shipper pays for
clearance but not for paying duties/taxes.
Top
Mission Statement
'International transport and warehousing solutions
tailored to our customers needs'