Incoterms

EXW (Ex Works):

This simple arrangement places the onus on the buyer to carry out the whole shipping process. The seller just makes the goods available at his factory or warehouse at the agreed date: if he physically loads them it is at the other party’s risk, unless specific wording is added to the contract to vary this term.
The buyer is responsible for loading, transportation, clearance and unloading.
‘Ex Works’ is also the typical basis of making initial quotations when the actual shipping costs at a given time are not known.

The buyer pays all transportation costs and also bears the risks for bringing the goods to their final destination.

FCA: (Free Carrier) :

The seller hands over the goods, cleared for export, to the first carrier with whom he has made the arrangements (even if that carrier has been chosen by the buyer). The buyer normally pays for carriage to the port of import, and risk passes to him when the goods are handed over to the first carrier, even though ‘delivery’ may not take place until the destination. The buyer also pays for insurance.

FAS (Free Alongside Ship):

The seller hands over the goods, cleared for export, to the first carrier with whom he has made the arrangements (even if that carrier has been chosen by the buyer). The buyer normally pays for carriage to the port of import, and risk passes to him when the goods are handed over to the first carrier, even though ‘delivery’ may not take place until the destination. The buyer also pays for insurance.

FOB (Free On Board):

Be wary of the misleading nature of this common phrase and how it is often misused. It is to be used only for exclusively water transportation. Do not use it for road/rail/sea multimodal container transportation – use FCA instead.

In FOB, the seller clears the goods for export and loads the goods on the vessel and at the port that have been nominated by the buyer.

New for Incoterms 2010 is that cost and risk are divided when the goods are actually on board: but delivery occurs when the goods are on board ship.

CFR ( Cost and Freight) :

Under this arrangement (previously known as C&F) the seller must pay the costs and freight to get the goods to their destination port, at which point delivery is achieved (but it is not the seller’s job to clear them through customs).

Actual risk passes to the buyer once the goods are loaded on the ship. Note that insurance for the goods is the responsibility of the buyer.

CPT (Carriage Paid To):

The seller pays for carriage. The risk passes to the buyer when the goods are handed to the first carrier at the place of Importation. The seller also has to pay for cargo insurance, in the name of the buyer, when goods are in transit. aynı sorumlulukları içerir. CPT ise deniz yolu dahil karayolu ve diğer taşıma şekillerinde(kombine olarak) kullanılır.

CIP ( Carriage and Insurance Paid To):

This is commonly used in road/rail or road/sea container shipments and is the multimodal equivalent of CIF. The seller pays for carriage and insurance to the named destination point, but risk passes when the goods are handed over to the freight forwarder, who in practice supplies the insurance element.

DAF (Delivered At Frontier):

For rail and road shipments. Seller pays for transport to the country frontier. Buyer arranges for customs clearance and pays for transport from frontier to his site. Risk passes at the frontier.

DEQ (Delivered ex quay):

The same as DES, except risk passes only when goods are unloaded at the destination.

DDU (Delivered Duty UnPaid):

Seller delivers the goods to the ultimate destination in the contract. The goods are not cleared for import or unloaded. The buyer is responsible for all costs and risks beyond this point. Any variation must be explicit in the contract.

DDP (Delivered Duty Paid):

This is the polar opposite to EXW: here the seller assumes all costs, risks and obligations, including import duties, taxes, clearance fees etc., right up to the destination point, where the buyer is then responsible for unloading the shipment.
(You may also come across the unofficial phrase “Free In Store” – FIS – for this term).

DES ( Delivered Ex) :

You may come across this with bulk commodities where seller owns or charters their own vessel. Unlike CFR and CIF, seller bears not just cost, but risk and title until arrival of the vessel at the delivery port. Buyer pays to unload plus customs duties, taxes, etc.

CIF ( Cost, insurance & freight ):

CIF is a very common format and it is identical to CFR: the only difference is that the seller also pays to insure the merchandise.
As mentioned earlier, the parties may choose to use older terms, and the following that are no longer specified by the ICC may still be encountered.