Group E : Departure term
Where the seller makes the goods available to the buyer at the seller's own premises.

EXW - EX WORKS (... named place)

"Ex works" means that the seller delivers when he places the goods at the disposal of the buyer at the seller's premises or another named place (i.e. works, factory, warehouse, etc.) not cleared for export and not loaded on any collecting vehicle.
" This term thus represents the minimum obligation for the seller.
" The buyer must bear all costs and risks involved in taking the goods from the seller's premises.
" This term should not be used when the buyer cannot carry out directly or indirectly the export formalities. In such circumstances, the FCA term should be used provided the seller agrees that he will load at his cost and risk.
Critical Points:
1: Carriage to be arranged by the buyer.
2: Risk transfer from seller to buyer when the goods are at the disposal of the buyer.
3: Cost transfer from seller to buyer when the goods are at the disposal of the buyer.

Group F: Shipment terms - Main carriage not paid by the seller
Where the seller is called on to deliver the goods to a carrier named by the buyer, (FCA, FAS and FOB). These are shipment contracts with the shipment point named, and carriage unpaid by the seller.

FCA - FREE CARRIER (... named place)

"Free Carrier" means the seller delivers the goods cleared for export to the carrier nominated by the buyer at the named place. It should be noted that the chosen place of delivery has an impact on the obligations of loading and unloading the goods at that place. If delivery occurs at the seller's premises, the seller is responsible for loading. If delivery occurs at any other place, the seller is not responsible for unloading.
" This term may be used for any mode of transport, including multimodal transport.
"Carrier" means any person who, in a contract of carriage, undertakes to perform or to procure the performance of transport by rail, road, sea, air, inland waterway or by a combination of such modes. If the buyer nominates a person other than a carrier to receive the goods, the seller is deemed to have fulfilled his obligation to deliver the goods when they are in the custody of that person.
Critical Points:
1: Carriage to be arranged by the buyer or by the seller on the buyer's behalf.
2: Risk transfer from seller to buyer when the goods have been delivered to the carrier at the names place.
3: Cost transfer from seller to buyer when the goods have been delivered to the carrier at the named place.

FAS - FREE ALONGSIDE SHIP (... named port of shipment)

"Free Alongside Ship" means that the seller delivers when the goods are placed alongside the vessel at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment. The FAS term requires the seller to clear the goods for export. THIS IS A REVERSAL FROM PREVIOUS INCOTERMS VERSIONS, WHICH REQUIRED THE BUYER TO ARRANGE FOR EXPORT CLEARANCE.
Critical Points:
1: Carriage to be arranged by the buyer.
2: Risk transfer from seller to buyer when goods have been placed alongside ship.
3: Cost transfer from seller to buyer when goods have been placed alongside ship.

FOB - FREE ON BOARD (... named port of shipment)

"Free on Board" means the seller delivers when the goods have passed over the ship's rail at the named port of shipment. The buyer has to bear all costs and risks of loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export.
" This term can only be used for sea or inland waterway transport.
" When the ship's rail serves no practical purpose, as in the case of roll-on/roll-off or container traffic, the term FCA is appropriate.
Critical Points:
1: Carriage to be arranged by the buyer.
2: Risk transfer from seller to buyer when goods pass the ship's rail
3: Cost transfer from seller to buyer when goods pass the ship's rail.

Group C: Shipment terms - Main carriage paid by the seller

CFR - COST AND FREIGHT (... named port of destination)

"Cost and Freight" means the seller delivers when the goods pass the ship's rail in the port of shipment. Seller must pay the costs and freight necessary to bring goods to the named port of destination, BUT the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer. CFR requires seller to clear goods for export.
" This term can only be used for sea and inland waterway transport.
" When the ship's rail serves no practical purpose, as in the case of roll-on/roll-off or container traffic, the CPT term is more appropriate.
Critical Points:
1: Carriage to be arranged by the seller.
2: Risk transfer from seller to buyer when the goods pass the ship's rail.
3: Cost transfer at the port of destination, buyer paying such costs as are not for the seller's account under the contract of carriage.

CIF - COST, INSURANCE AND FREIGHT (... named port of destination)

"Cost, Insurance and Freight" means seller has the same obligations as under CFR but with the addition that he has to procure marine insurance against buyer's risk of loss of or damage to goods during the carriage. Seller contracts for insurance and pays the insurance premium.
" The buyer should note that under the CIF term the seller is only required to obtain insurance on minimum coverage.
" The CIF term requires the seller to clear the goods for export.
" This term can only be used for sea and inland waterway transport.
" When the ship's rail serves no practical purposes as in the case of roll-on/roll-off or container traffic, the CIP term is more appropriate.
Critical Points:
1: Carriage and insurance arranged by the seller.
2: Risk transfer from seller to buyer when goods pass the ship's rail.
3: Cost transfer at port of destination, buyers paying such costs as are not for the seller's account under the contract of carriage.

CPT - CARRIAGE PAID TO (... named place of destination)

"Carriage paid to... " means the seller delivers the goods to the carrier nominated by him but the seller must, in addition, pay the cost of carriage necessary to bring the goods to the named destination. This means the buyer bears all risks and any other costs occurring after the goods have been delivered. The risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered to the carrier, is transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier.
"Carrier" means any person who, in a contract of carriage, undertakes to perform or to procure the performance of' transport, by rail, road, sea, air, inland waterway or by a combination of such modes.
" If subsequent carriers are used for the carriage to the agreed destination, risk passes when the goods are delivered to the first carrier.
" The CPT term requires the seller to clear the goods for export.
" This term may be used for any mode of transport including multimodal transport.
Critical Points:
1: Carriage to be arranged by the seller
2: Risk transfer from seller to buyer when the goods have been delivered to the carrier.
3: Cost transfer at port of destination, buyer paying such costs as are not for the seller's account under the contract of carriage.

CIP - CARRIAGE AND INSURANCE PAID TO (... named place of destination)

"Carriage and insurance paid to..." means the seller has the same obligations as under CPT but with the addition that the seller has to procure cargo insurance against the buyer's risk of loss of or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium.
" Buyer should note, under the CIP term the seller is only required to obtain insurance on minimum coverage.
" The CIP term requires the seller to clear the goods for export.
" This term may be used for any mode of transport including multimodal transport.
Critical Points:
1: Carriage and insurance to be arranged by the seller.
2: Risk transfer from seller to buyer when goods have been delivered to the carrier.
3: Cost transfer at the place of destination, the buyer paying such costs as are not for the seller's account under the contract of carriage.

Group D: Arrival Terms
Where the seller has to bear all costs and risk needed to bring the goods to the country of destination.

DAF - DELIVERED AT FRONTIER (... named place)

"Delivered at Frontier" means the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport, not unloaded, cleared for export, but not cleared for import, at the named point and place at the frontier, but before the customs border of the adjoining country. The term "frontier" may be used for any frontier including that of the country of export. Therefore, it is of vital importance that the frontier in question be defined precisely by always naming the point and place in the term.
" Term is primarily intended to be used when goods are carried by rail or road, but may be used for any mode.
Critical Points:
1: Carriage to be arranged by the seller.
2: Risk transfer from seller to buyer when goods have been delivered at the frontier.
3: Cost transfer from seller to buyer when the goods have been delivered at the frontier.

DES - DELIVERED EX SHIP (... named port of destination)

"Ex Ship" means the seller delivers when the goods have been placed at the disposal of the buyer on board the ship not cleared for import at the named port of destination.
" The seller has to bear all the costs and risks involved in bringing the goods to the named port of destination.
" This term can only be used for sea or inland waterway or multimodal transport on a vessel in the port of destination.
Critical Points:
1: Carriage to be arranged by the seller.
2: Risk transfer from seller to buyer when goods are placed at disposal of buyer on board the ship.
3: Cost transfer from seller to buyer when goods are placed at disposal of buyer on board the ship.

DEQ - DELIVERED EX QUAY (DUTY PAID) (... named port of destination)

"Delivered Ex Quay (duty paid)" means that the seller delivers when the goods have been placed at the disposal of the buyer not cleared for import on the quay (wharf) at the named port of destination. The seller has to bear all risks and costs of bringing the goods to the named port and discharging the goods on the quay. The DEQ term requires the buyer to clear the goods for import and to pay for all formalities, duties, taxes, and other charges upon import. THIS IS A REVERSAL FROM PERVIOUS INCOTERMS VERSIONS, WHICH REQUIRED THE SELLER TO ARRANGE FOR IMPORT CLEARANCE.
" If the parties wish to include in the seller's obligations all or part of the costs payable upon import of the goods, this should be made clear by adding explicit wording to this effect in the contract of sale
" This term may only be used when the goods are to be delivered by sea or inland waterway or multimodal transport on discharging from a vessel onto the quay at the port of destination.
" If the parties wish the buyer to clear the goods for importation and pay the duty the words duty unpaid, should be used instead of "duty paid".
Critical Points:
1: Carriage to be arranged by seller.
2: Risk transfer from seller to buyer when goods are placed at the disposal of the buyer on the quay.
3: Cost transfer from seller to buyer when goods are placed at the disposal of the buyer on the quay.

DDU - DELIVERED DUTY UNPAID (... named place of destination)

"Delivered duty unpaid" means the seller delivers the goods to the 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 duty (which term includes the responsibility and the risks of the carrying out of customs formalities and the payment of formalities, customs duties, taxes and other charges) for import in the country of destination. Such duty must be born by the buyer as well as any costs and risks caused by his failure to clear the goods for import on time.
" If the parties wish the seller to carry out customs formalities and bear the costs and risks resulting therefrom, this has to be made clear by adding explicit wording to the effect in the contract of sale.
" This term may be used irrespective of the mode of transport.
Critical Points:
1: Carriage to be arranged by seller.
2: Risk transfer from seller to buyer when goods are placed at the disposal of buyer.
3: Cost transfer from seller to buyer when goods are placed at the disposal of buyer.

DDP - DELIVERED Duty PAID (... named place of destination)

"Delivered duty paid" means the seller delivers the goods to the buyer cleared for import and not unloaded from any arriving means of transport at the named place of destination. The seller has to bear all the risks and costs involved in bringing the goods thereto, including, where applicable, any duty (which term includes the responsibility and the risks of the carrying out of customs formalities and the payment of formalities, customs duties, taxes and other charges) for import in the country of destination.
" DDP represents the maximum obligation for the seller.
" If parties wish the buyer to bear all risks and costs of import, the term DDU should be used.
" This term may be used irrespective of the mode of transport.
Critical Points:
1: Carriage to be arranged by seller.
2: Risk transfer from seller to buyer when goods are placed at the disposal of the buyer.
3: Cost transfer from seller to buyer when goods are placed at the disposal of the buyer.