International Commercial Terms


The Incoterms are published by the International Chamber of Commerce

For Sea Shipments only

FAS – Free Along Ship – The quoted price includes for the goods to be placed next the ship ready for exports. This is for heavy bulk ocean freight only not for containerized freight.

FOB– Free on Board – The price includes for the freight to be placed on board the vessel.

CFR – Cost and Freight The price includes the freight charges for the merchandise up to a named port of destination. However once the goods are loaded on the vessel the risk is transferred to the buyer. CFR replaces C&F

CIF – Cost, Insurance and Freight – The price includes the carriage charges and insurance to a named port of destination.

For Any Type of Transportation

EXW – Ex Works – Charges are only up to the seller’s factory or premises. Seller is not required to load the freight onto the buyer’s truck. Therefore all charges from there on, such delivery, distribution, and commissions, are for the buyer.

FCA – Free Carrier – The sellers gets the merchandise ready for export and turns over custody of the goods to the carrier at a place named by the buyer.

CPT – Carriage Paid To- The price invoiced by the seller includes the carriage to the place of destination named by the buyer, it does not include insurance cost.

CIP – Carriage & Insurance Paid to – The cost includes the carriage charges and insurance to a named place of destination.

DAT – Delivery at Terminal – The price includes delivery of the goods and unloaded at an agreed terminal. It does not include import clearance costs.

DDP – Delivery Duty Paid – The price includes the delivery to the buyer’s warehouse including duty and all import costs.

DAP – Delivered at Place – The price includes all costs including the delivery to the buyers warehouse. DAP replaces DDU.

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