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EXW {+ the named
place} |
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Ex Works
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Ex
means from. Works means factory,
mill or warehouse, which is the
seller's premises. EXW applies to
goods available only at the seller's
premises. Buyer is responsible for
loading the goods on truck or
container at the seller's premises,
and for the subsequent costs and
risks. In practice, it is not
uncommon that the seller loads the
goods on truck or container at the
seller's premises without charging
loading fee.
In the quotation, indicate the named
place (seller's premises) after the
acronym EXW, for example EXW Kobe
and EXW San Antonio.
The term EXW is commonly used
between the manufacturer (seller)
and export-trader (buyer), and the
export-trader resells on other trade
terms to the foreign buyers. Some
manufacturers may use the term Ex
Factory, which means the same as Ex
Works.
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FCA {+ the named point
of departure} |
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Free
Carrier |
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The
delivery of goods on truck, rail car
or container at the specified point
(depot) of departure, which is
usually the seller's premises, or a
named railroad station or a named
cargo terminal or into the custody
of the carrier, at seller's expense.
The point (depot) at origin may or
may not be a customs clearance
center. Buyer is responsible for the
main carriage/freight, cargo
insurance and other costs and risks.
In the air shipment, technically
speaking, goods placed in the
custody of an air carrier is
considered as delivery on board the
plane. In practice, many importers
and exporters still use the term FOB
in the air shipment.
The term FCA is also used in the
RO/RO (roll on/roll off) services.
In the export quotation, indicate
the point of departure (loading)
after the acronym FCA, for example
FCA Hong Kong and FCA Seattle.
Some manufacturers may use the
former terms FOT (Free On Truck) and
FOR (Free On Rail) in selling to
export-traders.
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FAS {+ the named port
of origin} |
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Free
Alongside Ship |
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Goods
are placed in the dock shed or at
the side of the ship, on the dock or
lighter, within reach of its loading
equipment so that they can be loaded
aboard the ship, at seller's
expense. Buyer is responsible for
the loading fee, main
carriage/freight, cargo insurance,
and other costs and risks.
In the export quotation, indicate
the port of origin (loading) after
the acronym FAS, for example FAS New
York and FAS Bremen.
The FAS term is popular in the
break-bulk shipments and with the
importing countries using their own
vessels.
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FOB {+ the named port
of origin} |
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Free On
Board |
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The
delivery of goods on board the
vessel at the named port of origin
(loading), at seller's expense.
Buyer is responsible for the main
carriage/freight, cargo insurance
and other costs and risks.
In the export quotation, indicate
the port of origin (loading) after
the acronym FOB, for example FOB
Vancouver and FOB Shanghai.
Under the rules of the INCOTERMS
1990, the term FOB is used for ocean
freight only. However, in practice,
many importers and exporters still
use the term FOB in the air freight.
In North America, the term FOB has
other applications. Many buyers and
sellers in Canada and the U.S.A.
dealing on the open account and
consignment basis are accustomed to
using the shipping terms FOB Origin
and FOB Destination.
FOB Origin means the buyer is
responsible for the freight and
other costs and risks.
FOB Destination means the seller is
responsible for the freight and
other costs and risks until the
goods are delivered to the buyer's
premises, which may include the
import customs clearance and payment
of import customs duties and taxes
at the buyer's country, depending on
the agreement between the buyer and
seller.
In international trade, avoid using
the shipping terms FOB Origin and
FOB Destination, which are not part
of the INCOTERMS (International
Commercial Terms).
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CFR {+ the named port
of destination} |
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Cost and
Freight |
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The
delivery of goods to the named port
of destination (discharge) at the
seller's expense. Buyer is
responsible for the cargo insurance
and other costs and risks. The term
CFR was formerly written as C&F.
Many importers and exporters
worldwide still use the term C&F.
In the export quotation, indicate
the port of destination (discharge)
after the acronym CFR, for example
CFR Karachi and CFR Alexandria.
Under the rules of the INCOTERMS
1990, the term Cost and Freight is
used for ocean freight only.
However, in practice, the term Cost
and Freight (C&F) is still commonly
used in the air freight.
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CIF {+ the named port
of destination} |
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Cost,
Insurance and Freight |
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The
cargo insurance and delivery of
goods to the named port of
destination (discharge) at the
seller's expense. Buyer is
responsible for the import customs
clearance and other costs and risks.
In the export quotation, indicate
the port of destination (discharge)
after the acronym CIF, for example
CIF Pusan and CIF Singapore.
Under the rules of the INCOTERMS
1990, the term CIF is used for ocean
freight only. However, in practice,
many importers and exporters still
use the term CIF in the air freight.
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CPT {+ the named place
of destination} |
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Carriage
Paid To |
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The
delivery of goods to the named place
of destination (discharge) at
seller's expense. Buyer assumes the
cargo insurance, import customs
clearance, payment of customs duties
and taxes, and other costs and
risks.
In the export quotation, indicate
the place of destination (discharge)
after the acronym CPT, for example
CPT Los Angeles and CPT Osaka.
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CIP {+ the named place
of destination} |
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Carriage
and Insurance Paid To |
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The
delivery of goods and the cargo
insurance to the named place of
destination (discharge) at seller's
expense. Buyer assumes the import
customs clearance, payment of
customs duties and taxes, and other
costs and risks.
In the export quotation, indicate
the place of destination (discharge)
after the acronym CIP, for example
CIP Paris and CIP Athens.
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DAF {+
the named point at frontier} |
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Delivered
At Frontier |
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The
delivery of goods to the specified
point at the frontier at seller's
expense. Buyer is responsible for
the import customs clearance,
payment of customs duties and taxes,
and other costs and risks.
In the export quotation, indicate
the point at frontier (discharge)
after the acronym DAF, for example
DAF Buffalo and DAF Welland.
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DES {+ the named port
of destination} |
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Delivered
Ex Ship |
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The
delivery of goods on board the
vessel at the named port of
destination (discharge), at seller's
expense. Buyer assumes the unloading
fee, import customs clearance,
payment of customs duties and taxes,
cargo insurance, and other costs and
risks.
In the export quotation, indicate
the port of destination (discharge)
after the acronym DES, for example
DES Helsinki and DES Stockholm.
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DEQ {+
the named port of destination} |
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Delivered
Ex Quay |
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The
delivery of goods to the quay (the
port) at destination at seller's
expense. Seller is responsible for
the import customs clearance and
payment of customs duties and taxes
at the buyer's end. Buyer assumes
the cargo insurance and other costs
and risks.
In the export quotation, indicate
the port of destination (discharge)
after the acronym DEQ, for example
DEQ Libreville and DEQ Maputo.
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DDU {+ the named point
of destination} |
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Delivered
Duty Unpaid |
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The
delivery of goods and the cargo
insurance to the final point at
destination, which is often the
project site or buyer's premises, at
seller's expense. Buyer assumes the
import customs clearance and payment
of customs duties and taxes. The
seller may opt not to insure the
goods at his/her own risks.
In the export quotation, indicate
the point of destination (discharge)
after the acronym DDU, for example
DDU La Paz and DDU Ndjamena.
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DDP {+ the named point
of destination} |
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Delivered
Duty Paid |
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The
seller is responsible for most of
the expenses, which include the
cargo insurance, import customs
clearance, and payment of customs
duties and taxes at the buyer's end,
and the delivery of goods to the
final point at destination, which is
often the project site or buyer's
premises. The seller may opt not to
insure the goods at his/her own
risks.
In the export quotation, indicate
the point of destination (discharge)
after the acronym DDP, for example
DDP Bujumbura and DDP Mbabane
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