E-TERMS		F-TERMS
EXW	In factory	FCA	Free Carrier
		FAS	Free alongside ship
		FOB	Free on board
C-TERMS		D-TERMS
CFR	Cost and Freight	DAF	Delivered at frontier
CIF	Cost, Insurance and Freight	DES	Delivered Ex Ship
CPT	Carriage paid to	DEQ	Delivered Ex Quay
CIP	Carriage and Insurance Paid To	DDU	Delivered Duty Unpaid
		DDP	Delivered Duty Paid

EXW – In factory (… convenient place)

“Ex Works” signifies that the seller has accomplished his obligation of delivering the merchandise in its establishment (factory, workshop, storage, etc), in disposition of the buyer. The seller is not responsible of carrying the merchandise in the vehicle arranged by the buyer, nor dispatch it to customs.

This term represents the minimum obligation for the seller. Therefore, the buyer is responsible for all the expenses and risks of taking the merchandise from the domicile to the desired destiny.

This term should not be used when the buyer cannot take responsibility with the formalities of exportation. In this case, the term FCA should be used.

FCA – Free Carrier (… convenient place)

“Free Carrier” means that the seller has accomplished his obligation in delivering merchandise when he has placed it. Also, dispatch it from customs for exportation, controlled with the named transporter by the buyer, in the agreed place. If the buyer has not indicated any specific place, the seller can pick one near the stipulated zone which is where the transporter will become in charge of the merchandise.

This term can be used with any of the transportation methods including multimode.

“Transporter” means any person with a transportation contract that compromises to do a train, highway, sea, air, interior navigable ways, or a combination of such transportation modalities. If the buyer gives instructions to the seller in order to deliver the shipment to a person, for example, any transit that is not a transporter, it is considered that the seller has accomplished with his obligation of delivering the merchandise when this last one is with the custody of such person.

FAS- Free alongside ship (… Shipping convenient port)

“Free alongside ship” means that the seller carries out his obligation of delivering when the merchandise has been placed next to the ship, on top of the pier, or in the landing craft of the port. This means that the buyer has to pay for all the expenses and risks of loss or damage for the merchandise once it is put on land.

The term FAS demands that the seller dispatches all the merchandise that will be exported.

This term can be only used with sea or navigable interior transportation ways.

When the ship’s board does not serve any practical mean, like in the case of roll-on traffic/roll off-traffic, it is preferred to use the FCA term.

FOB – Free on board

“Free on board” means that the vendor assumes his obligation of delivering the merchandise when this last one passes the ship’s board in the convenient port of call.

This signifies that the buyer has to support all the charges and risks of loss, or damage regarding the merchandise from that point.
The term “FOB” demands that the seller dispatches all the export merchandise.

This term can only be used with the transportation by sea or with navigable interior ways. When the ship’s board does not serve any practical mean, like in the case of roll on/roll off traffic, or in the container, is preferable to use the FCA term.

CFR- Cost and Freight (…port of convenient destiny)

“Cost and freight”, means that the seller has to pay the cost and freight in order for the merchandise to arrive at the port of destiny. The risk of loss or damage, or any other additional expense due to any other happenings occurred after the moment the merchandise has been delivered on board the ship, it is transferred from the seller to the buyer when the stock passes the port’s board.

The term CFR demands that the seller dispatches the exported merchandise.

This term can be only used with sea or navigable interior transportation ways. When the ship’s board does not serve any practical mean, like in the case of roll-on/roll- off or in the containers traffic, it is preferable to utilize the CPT term.

CIF – Cost, Insurance and Freight (…port of convenient destiny)

“Cost, Insurance, and Freight” means that the seller has the same obligations like with CFR. It also gets maritime insurance of the buyer’s risks or any harm that the merchandise might obtain during the transportation. The seller hires the insurance and pays the corresponding deducible.

The buyer must have in mind that under the term CIF, the seller is only obligated to get minimum insurance coverage.

The CIF term demands that the seller dispatches the merchandise with customs.

 This term can be only used with sea or navigable interior transportation ways. . When the ship’s board does not serve any practical mean, like in the case of roll-on/roll- off or in the containers traffic, it is preferable to use the CIP term.

CPT- Paid transportation until (… place of convenient destiny)

“Carriage paid to” means that the seller pays for the transportation freight of the merchandise until it is shipped. The risk of loss or damage of the merchandise, like any other additional coast due to any other events occurred after the merchandise has already been delivered; is transferred from the seller to the buyer once the merchandise is given to the transporter’s custody.

“Transporter” means any person with a transportation contract that compromises to do a train, highway, sea, air, interior navigable ways, or a combination of such transportation modalities.

If transporters are utilized for transportation, the risk is transmitted when the merchandise has been delivered to the first transporter.

The CPT term requires that the seller dispatches the merchandise with customs for the exportation.

This term can be used with any method of transportation, including multimodal.

CIP- Transportation and paid insurance until (…place of convenient destiny)

“Carriage and Insurance Paid To” means that the seller has the same obligations under CPT with the addition that the he has to get an insurance for the risk that supports the buyer from loss and damage of the merchandise during transportation. The seller gets insurance and pays the correspondent deducible.

The buyer has to have in mind that with the CIP term, the seller is only obligated to get a minimum insurance coverage.

The CIP term requires that the seller dispatches all the merchandise with customs for the exportation.

This term can be used with any method of transportation, including multimodal.

DAF- Delivered at frontier (…convenient place)

“Delivered at frontier” means that the seller has accomplished his obligation of delivering when he has distributed the dispatched merchandise in customs for exportation, in the convenient place of the border, but before the customs of the neighbor country.

The word “frontier” can be used to name any border, including the one next to the country of exportation. Therefore, it is of vital importance that the border is defined with precision, and always mentioned.

The term is mainly used when the merchandise is transported by train or highway, but can be also used with any transportation system.

DES- Delivered Ex Ship (…port of convenient destiny)

“Delivered Ex Ship” means that the seller has accomplished his obligation of shipping when he has put the merchandise in the buyer’s disposition on board the ship, in the destiny’s convenient port, without dispatching it with customs for importation.

The seller must assume all the expenses and risks related with the transportation of the merchandise until it gets to its port of destiny.

The term DES can only be used for transportation by sea or interior navigable ways.

DEQ- Delivered Ex Quay (paid rights) (…port of convenient destiny)

“Delivered Ex Quay (Duty paid)” means that the seller has accomplished his obligation in delivering when he has put the merchandise in the buyer’s disposition in the pier.

The seller must assume all the risks and expenses, without including rights, taxes, and other cargo for taking the merchandise to the specific point.

The DEQ term cannot be used if the seller cannot obtain, directly or indirectly, the license of importation. If the parts wish that the buyer dispatches in the merchandise with customs for the importation and pays the rights, the words “duty unpaid” should be used instead of, “duty paid”.

If the parts wish to exclude the obligations of the seller, such as taxes, etc, it should be clearly mentioned, and include the following words “Delivered Ex Quay”, VAT unpaid”.

This term can only be used for transportation by sea or interior navigable ways.

“Deliveted Duty Unpaid” refers that the seller has accomplished his obligation of delivering the merchandise when it has been put in disposition in the convenient country of importation.

The seller has to cover all the expenses and risks related in taking the merchandise to the specific place (excluding rights, taxes, and other official cargo required in the importation), such as expenses and risks of the custom’s formality.

The buyer must pay any additional expense and support all the risks in case of not being able to dispatch the merchandise with customs for its importation in the given time.

If the parts wish that the seller does the custom’s papers, supports the expenses, and resulted risks, this has to be clearly expressed.

If the parts wish to include in the seller’s obligations, any paid expense for the importation of the merchandise (such as IVA), this must be clearly expressed , adding in this effect the following words “Delivered duty unpaid, VAT paid”.

The term DDU can be used with any transportation method.

 

DDP- Delivered Duty Paid (… place of convenient destiny)

“Delivered Duty Paid” means that the seller has accomplished his obligation in the delivery when the merchandise has been put in disposition in the mentioned country of importation. The seller has to assume all the expenses and risks, including rights, taxes, and other cargo for taking the merchandise to the specific place, once dispatched with customs for importation. While the EXW term has the minimum of obligations for the seller, the term DDP means the maximum of obligations.

The term cannot be utilized if the seller cannot obtain, direct or indirect, the importation license.

If the parts wish that the buyer dispatches the merchandise with customs for the importation and pays for the customs duties, the term DDU should be used.

If the parts wish to exclude the seller’s obligations, some of the paid expenses for the importation of the merchandise (such as IVA), it should be mentioned clearly adding the following words “Delivered duty paid, VAT unpaid”

The DDP term can be used with any transportation method.