FAS – FREE ALONGSIDE SHIP – FREE BY SHIP (Named Shipping Port)
It should be used only in the waterway system, which consists of maritime, river and lake transportation.
In this term, the seller fulfills his obligation of delivery when the goods are placed next to the vessel designated by the buyer, on the quay or on a ferry, in the named port of embarkation, or purchased therewith.
Seller assumes all costs and risks of loss or damage to merchandise to that extent.
Customs procedures on exportation are at the seller’s expense, when applicable. It has no obligation as regards customs procedures on importation and transit through third countries.
FOB – FREE ON BOARD – FREE ON BOARD (named shipping port)
FOB should only be used in the waterway system, consisting of maritime, river and lake transport.
This term implies that the seller delivers the goods on board the vessel designated by the buyer at the designated port of embarkation, or purchases it so delivered.
The risk of loss or damage to the goods is transferred to the buyer at this time.
Customs procedures on exportation are on behalf of the seller, where applicable, as long as he has no obligation on importation and in third countries.
CPT – CARRIAGE PAID TO – SHIPPING PAID TO (Named Place of Destination)
This term can be used for any mode of transport, and also when more than one mode of transport is used.
CPT means that the seller delivers the goods to the carrier at a place agreed upon in his country and with transportation contracted and paid by him to take the goods to the designated place of destination abroad. Thus, it fulfills its obligation of delivery when the goods are delivered to the carrier, not when it arrives at the place of destination.
This term therefore has two different critical points, risk and cost, which are transferred at different locations.
Customs duties on exportation are at the expense of the seller, where applicable, while customs procedures and duties on importation and transit through third countries are not on his behalf.
CIP – CARRIAGE AND INSURANCE PAID TO – TRANSPORT AND INSURANCE PAID TO (Named Destination)
This term can be used for any mode of transport, and also when more than one mode of transport is used.
In this term, the seller delivers the goods to the carrier, at the place agreed in his country, or purchases it delivered, and with transportation contracted and paid by him to take the goods to the designated place of destination abroad.
Thus, this term has two different critical points, risk and cost, which are transferred at different locations.
The seller also contracts insurance for the merchandise against the risk of loss or damage to the buyer during transportation. Hiring will have to be under the coverage of Clause “A” of the Institute Cargo Clause (LMA / IUA) or similar clause. The seller must provide the buyer with an insurance policy or other evidence of insurance coverage.
Customs on exportation are on behalf of the seller, where applicable, but he has no obligation to deal with importation or transit through third countries.
CFR – COST AND FREIGHT – COST AND FREIGHT (named destination port)
The CFR should only be used in the waterway system, consisting of maritime, river and lake transport.
Cost and Freight means that the seller delivers the goods aboard the vessel at the port of shipment or purchases it delivered. The seller must hire and pay the costs and freight required to bring the goods to the designated port of destination.
Thus, this term presents two critical points, as risks and costs are transferred at different locations.
Customs on exportation are on behalf of the seller, where applicable, but he has no obligation as to customs procedures and duties on importation and transit through third countries.
CIF – COST INSURANCE AND FREIGHT – COST, INSURANCE AND FREIGHT (named port of destination)
The CIF should only be used in the waterway system, ie maritime, river and lake transport.
CIF means that the seller delivers the goods on board the vessel or purchases it delivered. The seller must contract and pay the necessary costs and freight, from the point of delivery to the point at the designated port of destination.
This term presents two critical points as risks and costs are transferred at different locations.
The seller also contracts insurance for the merchandise against the risk of loss or damage to the buyer during transportation. Hiring must be at the minimum coverage, Clause “C”, Institute Cargo Clause (LMA / IUA) or similar clause.
Customs on export are at the seller’s expense, where applicable, as long as he has no obligation to import and transit through third countries.
DAP – DELIVERED AT PLACE – DELIVERED ON SITE (named destination location)
This term can be used for any mode of transport, and also when more than one mode of transport is used.
In this term, the delivery of the goods by the seller occurs when it is made available to the buyer, at the designated destination, in the transport vehicle, ready to be landed. The seller assumes all risks and costs for this delivery.
The customs procedures on exportation are on behalf of the seller, who has no obligation on importation or transit through third countries.
DPU – DELIVERED AT PLACE UNLOADED – DELIVERED AT UNEMBARKED PLACE (Named Destination Location)
This term can be used for any mode of transport, and also when more than one mode of transport is used.
Delivery takes place when the seller places the goods landed from the means of transport at the disposal of the buyer at the designated place of destination. The seller must assume all risks and costs involved for this.
Customs procedures on exportation are at the seller’s expense, where applicable, but not in the importing and transit countries.
This is the only Incoterms® term where the seller is required to land the goods upon delivery.
DDP – DELIVERED DUTY PAID – DELIVERED PAID RIGHTS (named place of destination)
This term may be used for any means of transport, and for when more than one mode of transport is used.
In DDP, the delivery of the goods by the seller occurs when the goods are cleared at the disposal of the buyer at the designated place of destination, in the transport vehicle, ready to be landed. The seller assumes all costs and risks for this delivery.
Customs procedures on exportation, importation and transit through third countries are the responsibility of the seller.
Unlike EXW, this term is the most responsible for the seller, being the most comfortable for the buyer.