CFR (Cost and Freight) – Cost and Freight (named port of destination)

For the seller the scope are the same as the FOB with the only difference that the company should be responsible for hiring the ship’s hold and pay the freight to destination.

The risk of loss or damage to the goods as well as any additional costs due to events occurring after the time of delivery, are transferred from seller to buyer

The CFR term requires the seller to clear the goods for export.

This term can be used for transport by sea and inland waterways only.

Obligations of Seller.

  • Deliver merchandise and necessary documents
  • Pack and Packing
  • Freight (of factory to the export place)
  • Customs (documents, permissions, requirements, taxes)
  • Export expenses (you maneuver, storage, agents)
  • Freight (of export place to the import place)
  • Obligations of the Buyer.

Payment of Goods

  • Import expenses (you maneuver, storage, agents)
  • Customs (documents, permissions, requirements, taxes)
  • Freight and sure (import place to plant)
  • delays

CIF (Cost, Insurance and Freight) – Cost, Insurance and Freight (named port of destination)

It means that the seller delivers the goods when it exceeds the ship’s rail at the port of shipment.

The seller must pay the costs and freight necessary to bring the goods to the named port of destination.

In CIF the seller also has an insurance and pay the premium in order to cover the risk of loss or damage that may occur to the goods during transport.

The buyer should note that the seller is required to obtain insurance only on minimum cover. If the buyer wants more coverage you will need to agree as much expressly with the seller or to make his own extra insurance.

The CIF term requires the seller to clear the goods for export.

This term can be used for transport by sea and inland waterways only.

Obligations of Seller.

  • Deliver merchandise and necessary documents
  • packaging and packaging
  • Freight (of factory to the export place)
  • Customs (documents, permissions, requirements, taxes)
  • Export expenses (you maneuver, storage, agents)
  • Freight and sure (of export place to the import place)
  • Obligations of the Buyer.

Payment of goods

  • Import expenses (you maneuver, storage, agents)
  • Customs (documents, permissions, requirements, taxes)
  • Freight and sure (import place to plant)
  • delays

CIP (Carriage and Insurance Paid to) – Carriage and Insurance Payment To (named place of destination)

The seller delivers the goods to the carrier nominated by him but also must pay the costs of carriage necessary to bring the goods to the agreed destination. The seller also has to procure insurance against the risk borne by the buyer, the loss or damage to the goods during transport.

Buyer assumes all risks and any other costs occurring after the goods have been so delivered.
The CPT requires the seller to clear the goods for export.
This term may be used irrespective of the mode of transport including multimodal transport.

Seller’s Obligations

  • Give the merchandise and necessary documents
  • Packing and packaging
  • Freight (of factory to the export place)
  • Customs (documents, permissions, requirements, taxes)
  • Export expenses (you maneuver, storage, agents)
  • Freight and sure (of export place to the import place)
  • Import expenses (you maneuver, storage, agents) “Partial”
  • Obligations of the Buyer

Payment of goods

  • Customs (documents, permissions, requirements, taxes)
  • Freight and sure (import place to plant)
  • Import expenses (you maneuver, storage, agents) “Partial”
  • delays


CPT (Carriage Paid To) – Carriage Paid To (named place of destination)

The seller delivers the goods to the carrier nominated by him but also must pay the costs of carriage necessary to bring the goods to the agreed destination.
Buyer assumes all risks and any other costs occurring after the goods have been so delivered.
The CPT requires the seller to clear the goods for export.
This term may be used irrespective of the mode of transport including multimodal transport.

Seller’s Obligations

  • Give the merchandise and necessary documents
  • Packing and packaging
  • Freight (of factory to the export place)
  • Customs (documents, permissions, requirements, taxes)
  • Export expenses (you maneuver, storage, agents)
  • Freight (of export place to the import place)
  • Import expenses (you maneuver, storage, agents) “Partial”
  • Obligations of the Buyer

Payment of goods

  • Customs (documents, permissions, requirements, taxes)
  • Freight and sure (import place to plant)
  • Import expenses (you maneuver, storage, agents) “Partial”
  • delays

DAF (Delivered At Frontier) – You Delivered At Frontier (named place)

It means that the seller fulfills his obligation to deliver when the goods has been dispatched to Customs for export in the point and place of the frontier but before the customs border of the buyer country.

This term may be used irrespective of the mode of transport when goods are to be delivered at a land frontier.

Seller’s Obligations

  • Deliver merchandise and necessary documents
  • Packing and packaging
  • Freight (of factory to the export place)
  • Customs (documents, permissions, requirements, taxes)
  • Export expenses (you maneuver, storage, agents)
  • Freight (of export place to the import place) (partial)
  • Security (partial)


Obligations of the Buyer

  • Payments of Goods
  • Freight (of export place to the import place) (partial)
  • Security (partial)
  • Import expenses (you maneuver, storage, agents)
  • Customs (documents, permissions, requirements, taxes)
  • Freight and sure (import place to plant)
  • delays


DDP (Delivered Duty Paid) – Delivered Duty Paid (named place of destination)

It means that the seller delivers the goods to the buyer, cleared for import, and not unloaded from any arriving means of transport at the place of destination.

The seller has to bear all costs and risks involved in bringing the goods to the place, including customs formalities, and the payment of formalities, customs duties, taxes and other charges for import into the country of destination.

Obligations of the seller

  • Deliver merchandise and necessary documents
  • Packing and packaging
  • Run (factory to the export place)
  • Customs (documents, permissions, requirements, taxes)
  • Export expenses (you maneuver, storage, agents)
  • Freight (of export place to the import place)
  • you sure
  • Import expenses (you maneuver, storage, agents)
  • Customs (documents, permissions, requirements, taxes)
  • Hauling and sure (import place to plant)
  • delays

Obligation of the purchaser

  • Paying for goods

DDU (Delivered Duty Unpaid) – Delivered Duty Unpaid (named place of destination)

It means that the seller fulfills his obligation to deliver when he has made the goods available to the buyer at the named place in the country of import and the seller has to bear all costs and risks involved in bringing the goods to that place (excluding rights , taxes and other official charges payable on imports). As the costs and risks of carrying out customs formalities.

Seller’s Obligations

  • Deliver merchandise and necessary documents
  • Packing and packaging
  • Freight (of factory to the export place)
  • Customs (documents, permissions, requirements, taxes)
  • Export expenses (you maneuver, storage, agents)
  • Freight and sure (of export place to the import place)
  • Obligations of the Buyer

Payment of goods

  • Import expenses (you maneuver, storage, agents)
  • Customs (documents, permissions, requirements, taxes)
  • Freight and sure (import place to plant)
  • delays


DEQ (delivered Ex-Quay) – Delivered Ex Quay (named port of destination)

It means that the seller delivers when the goods available to the buyer are made, not cleared for import on the quay (wharf) at the named port of destination. The seller has to bear costs and risks involved in bringing the goods to the named port of destination and discharging the goods on the quay (wharf). 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.

Seller’s Obligations

  • Deliver merchandise and necessary documents
  • Packing and packaging
  • Freight (of factory to the export place)
  • Customs (documents, permissions, requirements, taxes)
  • Export expenses (you maneuver, storage, agents)
  • Freight and sure (of export place to the import place)
  • Customs (documents, permissions, requirements, taxes)
  • Obligations of the Buyer

Payment of goods

  • Freight and sure (import place to plant)
  • Import expenses (you maneuver, storage, agents)
  • delays
  • This term can be used for transport by sea or inland waterway or multimodal transport only

DES (Delivered Ex Ship) – Given On Ship (named port of destination)

It means that the seller delivers when the goods available to the buyer on board the ship not cleared for import at the named port of destination are set.

Seller’s Obligations

  • Deliver merchandise and necessary documents
  • Packing and packaging
  • Freight (of factory to the export place)
  • Customs (documents, permissions, requirements, taxes)
  • Export expenses (you maneuver, storage, agents)
  • Freight and sure (of export place to the import place)
  • Obligations of the Buyer

Payment of goods

  • Import expenses (you maneuver, storage, agents)
  • Customs (documents, permissions, requirements, taxes)
  • Hauling and sure (import place to plant)
  • delays


EXW (Ex-Works) – Ex Works (named place)

It means that the seller delivers when the goods available to the buyer at the seller’s premises or at another agreed place (ie, factory, warehouse, etc.).
This term thus represents the minimum obligation for the seller, and the buyer has to bear all costs and risks.

Obligations of Seller.

  • Delivery of the goods and documents
  • Packing and packaging
  • Obligations of the Buyer.

Payment of goods

  • Internal Freight (of factory to the export place)
  • Customs (documents, permissions, requirements, taxes)
  • Export expenses (you maneuver, storage, agents)
  • International Freight (of export place to the import place)
  • you sure
  • Import expenses (you maneuver, storage, agents)
  • Carriage and Insurance (import place to plant)


FAS (Free Along Ship) – Free Alongside Ship (named port of shipment)

It means that the seller’s responsibility ends when the goods are placed alongside the vessel at the port of shipment. This means that the buyer has to bear all costs and risks of loss or damage to the goods from that moment.
The FAS term requires the seller to clear the goods for export.

Seller’s Obligations

  • Merchandise and Required Documents
  • Pack and Packing
  • Freight (of factory to the export place)
  • Customs (documents, permissions, requirements, taxes)
  • Export expenses (you maneuver, storage, agents)
  • Obligations of the Buyer

Payments of goods

  • Freight and sure (of export place to the import place)
  • Import expenses (you maneuver, storage, agents)
  • Customs (documents, permissions, requirements, taxes)
  • Insurance and freight (import place to plant)
  • delays


FCA (Free Carrier) – Free Carrier (named place)

It means that the seller delivers the goods for export to that proposed by the buyer at the agreed place carrier.

The chosen place of delivery has an impact on the obligations of loading and unloading of parts. If delivery occurs at the seller’s premises that is responsible for loading. If delivery occurs at any other place, the seller is not responsible for unloading.
This term may be used in any mode of transport including multimodal transport.

Obligations of the seller.

  • Delivery of Goods and documents
  • Packing and packaging
  • Freight (of factory to the export place)
  • Customs (documents, permissions, requirements, taxes)
  • Export expenses (you maneuver, storage, agents)
  • Obligations of the buyer

Payments of goods

  • Freight (of export place to the import place)
  • you sure
  • Import expenses (you maneuver, storage, agents)
  • Customs (documents, permissions, requirements, taxes)
  • Freight and sure (import place to plant)
  • delays


FOB (Free On Board) – Free on Board (named port of shipment)

The seller’s responsibility ends when the goods beyond the ship’s rail at the port of shipment.

The buyer must bear all costs and risks of loss and damage to the goods from that point.
The FOB term requires the seller to clear the goods for export.
This term can be used for transport by sea and inland waterways only.

Obligations of the seller

  • Give the merchandise and necessary documents
  • Packing and packaging
  • Freight (of factory to the export place)
  • Customs (documents, permissions, requirements, taxes)
  • Export expenses (you maneuver, storage, agents)
  • Obligations of the Buyer

Payment of goods

  • Freight and sure (of export place to the import place)
  • Import expenses (you maneuver, storage, agents)
  • Customs (documents, permissions, requirements, taxes)
  • Freight (import place to plant)
  • delays