1、Ex Works (EXW)
It means that the seller is responsible for delivering the ready goods to the buyer at its location, i.e. factory, warehouse, etc., but usually not responsible for loading the goods on the vehicle prepared by the buyer or handling the customs clearance of the goods. The buyer bears all costs and risks of transporting the goods from the seller's location to the intended destination. This term is the transaction term for which the seller bears the least responsibility. If the buyer cannot handle the export procedures of the goods, this method should not be used.
2、Free Carrier (FCA)
It means that the seller shall be responsible for delivering the goods handed over to the care of the carrier designated by the buyer at the designated place. According to commercial practice, when the seller is required to cooperate with the carrier by signing a contract, the seller may do so at the buyer's risk and expense. This term applies to any mode of transport. It should be noted that the choice of place of delivery will have an impact on the obligation to load and unload the goods at that place. Seller shall be responsible for loading if delivered at its location and shall not be responsible for unloading if delivered at any other location.
3、Free Along Ship (FAS)
It means that the seller delivers the goods to the side of the ship at the designated port of shipment or on a barge. From then on, the buyer must bear all the costs and risks of loss or damage to the goods. In addition, the buyer must go through export clearance procedures. This term applies to sea or inland waterway transport. Note: If the ship sent by the buyer cannot dock, the seller shall be responsible for transporting the goods to the side of the ship by barge and still delivering the goods by the side of the ship. Responsibility and expense of shipment are borne by the buyer.
4、Free on Board(FOB)
It means that the seller delivers the goods over the ship's rail at the designated port of shipment. After the goods have passed the ship's rail, the buyer must bear all the costs, risks, loss or damage of the goods, and requires the seller to go through the customs clearance procedures for the export of the goods. That is to say, the buyer is responsible for sending the ship to pick up the goods, and the seller should load the goods on the ship designated by the buyer at the port of shipment and within the specified time limit specified in the contract, and notify the buyer in time. The risk is transferred from the seller to the buyer when the goods are loaded on board the named vessel at the port of shipment. This term applies to sea or inland waterway transport.
5、Cost and Freight(CFR or C&F)
It means that the seller must pay the expenses and freight required to transport the goods to the designated port of destination, but after the goods are handed over to the deck of the ship, the risk of loss or damage to the goods and the additional expenses caused by accidents, after the goods have passed the designated port After the ship's rail, it is the responsibility of the seller to the buyer. In addition, the seller is required to go through customs clearance procedures for the export of the goods. That is, it means delivery on board at the port of shipment, and the seller needs to pay the cost of transporting the goods to the named port of destination. But the risk of the goods is transferred upon delivery on board at the port of shipment. This term applies to sea or inland waterway transport.
6、Cost, Insurance and Freight(CIF)
It means that in addition to the seller having the same obligations as the cost-plus-freight term, the seller must also purchase marine insurance and pay the insurance premium for the loss or damage of the goods during transportation. Therefore, in addition to having the same obligations as those in CFR terms, the seller also needs to purchase cargo insurance for the buyer and pay the insurance premium. According to general international trade practice, the seller’s insured amount should be based on the CIF price plus 10%. If the buyer and the seller have not agreed on the specific insurance, the seller only needs to obtain the minimum minimum insurance. If the buyer requires additional war insurance, the seller should provide additional insurance under the premise that the insurance premium is borne by the buyer. When the seller buys the insurance, If this is possible, insurance must be insured in the currency of the contract. This term applies to sea or inland waterway transport.
7、Carriage Paid to: tid to (… named place of destination)(CPT)
This term means that the seller pays for the carriage of the goods to the named destination. The risk of loss of or damage to the goods and any additional costs arising from events occurring after the goods have been delivered to the carrier pass from the seller to the buyer from the time the goods have been placed in the care of the carrier. In addition, the seller must go through customs clearance procedures for the export of the goods. Carrier means any person who, in a contract of carriage, undertakes to perform carriage by rail, road, air, sea, inland waterway or a combination of the above or to have the carriage performed by another person. If a subsequent carrier is also used to transport the goods to the agreed destination, the risk passes when the goods are handed over to the first carrier. This term applies to all modes of transport, including multimodal transport.
8、Carriage and Insurance Paid to(… named place of destination)(CIP)
It means that in addition to the seller having the same obligation as the CPT term to pay the freight to (... the designated destination), the seller must also apply for marine insurance and pay the insurance premium for the risk of loss or damage to the goods that should be borne by the buyer during transportation. During this period, the seller must pay for the freight to deliver the goods to the destination, and the buyer bears all risks and additional costs after the seller's delivery. This term applies to any mode of transport.
9、Delivered at Frontier(...named place)(DAF)
It means that the seller undertakes the following obligation to transport the ready goods to the designated place on the frontier, before the customs border of the adjacent country, to hand over the goods that are still on the delivery vehicle and unloaded goods to the buyer, and complete the goods Delivery is complete when the export customs clearance procedures have not yet been processed. The term border can be used for any border, including the border of the exporting country. It is therefore of the utmost importance to precisely define the frontier in question with designated places and specific points of delivery. The term applies primarily to goods transported by rail or road, but may also be used by other modes of transport.
10、Delivered Ex Ship(… named port of destination)(DES)
It means that the seller fulfills the following obligation to hand over the ready goods to the buyer without going through customs clearance procedures for the import of the goods on the deck of the ship at the designated port of destination, so the seller must bear all costs including the transportation of the goods to the designated port of destination and risk. The term DEQ should be used if the parties wish the seller to bear the risk and expense of discharge. The DES trade term can only be used when the goods are unloaded on board a ship at the port of destination by sea or inland waterway transport or multimodal transport. This term only applies to sea or inland waterway transport.
11、Delivered Ex Quay (Duty Paid)(…named port of destination)(DEQ)
This term refers to the performance of the seller's obligation to deliver the goods prepared by it to the buyer at the wharf at the named port of destination, and the seller must bear all risks and costs, including customs, taxes and other costs incurred in delivery. In view of the fact that when countries around the world use the term DEQ, the practice of who is responsible for the import formalities is not completely uniform. Therefore, when using the term DEQ, attention must be paid. This term applies to sea or inland waterway transport.
12、Delivered Duty Unpaid(DDU)
It means that the seller will deliver the prepared goods at the place designated by the importing country, and must bear all the costs and risks of transporting the goods to the designated place (excluding customs duties, taxes and other official fees payable at the time of import), and must also bear Costs and risks of customs formalities. The buyer shall bear the additional costs and risks arising from the failure to handle the import customs clearance of the goods in time. It is generally recommended that when conducting transactions with countries where it is difficult and time-consuming to handle import customs clearance, in order to avoid the impact of the transaction due to the buyer's failure to handle import customs clearance in time, it is better for the seller not to use DDU. This term applies to all modes of transport.
