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INCOTERMS
EXW Ex Works

Sales term denoting that the seller is responsable for making the goods available at his works or factory. The buyer bears the cost of loading the goods onto the vehicle(s) and delivering them to the destination. The risk of loss and damage to the goods generally passes from the seller to the buyer at the time that they are made available.

FCA Free carrier-named place

Means that the seller delivers the goods to the carrier or another person nominated by the buyer at the seller´s premises or another named place. The parties are well advised to specify as clearly as possible the point within the named place of delivery, as the risk passes to the buyer at that point.

CAD Cash against documents

Term of sale whereby the buyer receives the comercial documents, including the Bill of Lading, which is the document of title, on paying the seller for the godos. This term is also used to qualify a contract of carriage in which the carrier releases the Bill of Lading to the shipper in exchange for the goods.

CPT Carriage paid to

Means that the seller pays the freight for the carriage of the goods to the named destination. However, the risk of loss and damage to the goods, as well as any cost increases, is transferred from the seller to the buyer when the goods have been delivered into the custody of the first carrier and not at the ship´s rail. It can be used for all modes of transport including multimodal operations and container or roro traffic by trailers and ferries. When the seller has to furnish a Bill of Lading, waybill or carrier´s receipt, he dully fulfills his obligation by presenting such a document issued by the person with whom he has contracted for carriage to the named destination.

CIP Carriage and insurance paid to

This term is the same as CPT but with the addition that the seller has to procure transport insurance against the risk of loss or damage to the goods during carriage. The seller contracts with the insurer and pays the insurance premium.

DAT Delivered at Terminal

Means that the seller delivers when the goods once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination. Terminal includes any place, whether covered or not, such as quay, warehouse, container yard or road, rail or air cargo terminal. The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination.

DAP Delivered at Place

Means that the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. The seller bears all risks involved in bringing the goods to the named place.

DES Delivery ex ship

This mean that the seller shall make the goods available to the buyer on board the ship at the destination named in the sales contract. The seller has to bear the full cost and risk involved in bringing the goods there.

DEQ Delivered ex quay

This mean that the seller makes the goods available to the buyer on the quay at the destination named in the sales contract. The seller has to bear the full cost and risk involved in bringing the goods there.

DDP Delivered duty paid

Means that the seller delivers the goods when the goods are placed at the disposal of the buyer, cleared for import on the arriving means of transport ready for unloading at the named place of destination. The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import, to pay any duty for both export and import and to carry out all customs formalities.

FAS Free alongside ship

Under this term the seller´s obligations are fulfilled when the goods have been placed alongside the ship on the quay or in lighters. This means that the buyer has to bear all costs and risks of loss or damage to the goods from that moment. It should be noted that unlike fob, the present term requires the buyer to clear the goods for export.

FOB Free on board

Sales term denoting that the seller is responsible for delivering the goods to the port of loading agreed in the contract and for loading them on to the ship nominated by the buyer. The risk of loss or damage to the goods generally passes from the seller to the buyer when the goods pass ship´s rail at the port of loading.

CFR Cost and freight

Sales term denoting that the seller is responsible for arranging and paying for the carriage of the goods to the agreed port of discharge. Risk of loss and damage generally passes to the buyer when the goods pass ship´s rail at the port of loading.

CIF Cost, insurance and freight

Sales term denoting that the seller is responsible for arranging and paying for the carriage of the goods to the agreed port of discharge and for the insurance of the goods covering the period of carriage involved in the contract of sale. The risk of loss or damage generally passes to the buyer when the goods pass ship´s rail at the port of loading.