Group I
Group “E” means that the seller prepares the goods for the buyer only at his own place (delivery).
EXW (EX works): Delivery from factory (named place). The seller delivers the goods from the factory (or warehouse) to the buyer and, unless otherwise specified, is not responsible for loading the goods onto a vehicle or vessel arranged by the buyer and does not handle export customs clearance. Buyer bears all costs and risks from the time of delivery at Seller’s factory to the final destination.
Group II
Group “F” (FCA, FAS and FOB) means that the seller is required to deliver the goods to the carrier appointed by the buyer (main freight unpaid).
FCA (Free Carrier): the goods are delivered to the carrier (named place). This term means that the seller must deliver the goods to the custody of the carrier designated by the buyer within the delivery period specified in the contract, and bear all costs and risks of loss or damage to the goods before they are placed in the custody of the carrier. In addition, the seller shall handle all customs formalities required for export.
FAS (Free Alongside Ship): Ship-side delivery (designated port of shipment), means that the seller will transport the goods to the designated port of shipment ship-side or barge delivery, and in the need for customs procedures, all the customs procedures required for the export of goods, the buyer bears all the costs and risks from the port of shipment ship-side (or barge).
FOB (Free On Board): delivery on board (designated port of shipment), the term stipulates that the seller must deliver the goods to the buyer’s designated ship at the designated port of shipment within the contracted shipment period, and bear all costs and risks of loss or damage to the goods until they cross the ship’s rail.
Group III
Group “C” (CFR, CIF, CPT and CIP), means that the seller shall enter into a contract of carriage, but shall not be liable for the risk of loss of or damage to the goods and for additional costs arising from accidents after shipment and departure (the main freight has been paid).
CFR (Cost and Freight): Cost and Freight (named port of destination), refers to the seller must be in the contract period of shipment, the port of shipment of the goods to the ship to the named port of destination, to bear all the costs of the goods over the side of the ship until the risk of loss or damage to the goods, and is responsible for chartering and booking, pay the normal freight to the port of destination.
CIF (Cost, Insurance and Freight): cost, insurance and freight (designated port of destination), means that the seller must deliver the goods to the ship at the port of shipment to the designated port of destination within the contracted shipment period, bear all costs and risks of loss or damage to the goods until they cross the ship’s rail and handle freight insurance, pay the insurance premium, and be responsible for Chartering and booking, paying the normal freight from the port of shipment to the port of destination.
CPT (Carriage Paid to): freight paid to (named destination), refers to the seller to pay the freight of the goods to the named destination, the risk of loss or damage to the goods when the goods are placed in the custody of the carrier, as well as the additional costs caused by events that occur after the goods are handed over to the carrier, that is, transferred from the seller to the buyer.
CIP (Carriage and Insurance Paid to): freight, insurance paid to (named destination), refers to the seller to pay the freight of the goods to the destination, and the buyer’s risk of loss or damage to the goods in transit to obtain cargo insurance, enter into an insurance contract, pay the cost of insurance, the risk of loss or damage to the goods when the goods are placed in the custody of the carrier. and additional costs arising from events occurring after the goods have been handed over to the carrier, i.e., pass from the seller to the buyer.
Group IV
Group “D” (DAF, DES, DEQ, DDU and DDP), means that the seller shall bear all the costs and risks required to deliver the goods to the country of destination (arrival).
DAF (Delivered at Frontier): delivery at frontier (designated place), means that the seller will transport the goods to the buyer’s designated border location, will still be in the delivery of goods on the means of transport has not been unloaded to the buyer, and complete customs clearance procedures for the export of goods, and bear all the costs and risks required to deliver the goods to the designated place on the border, this place is adjacent to the border before the customs border of any country, including the exporting country (including transit countries). Import customs clearance is carried out by the buyer.
DES (Delivered EX Ship): Delivered on board the ship at the port of destination (designated port of destination), means that the seller will transport the goods to the ship at the buyer’s designated port of destination and hand them over to the buyer, but no import clearance procedures, the seller bears all the costs and risks until the goods arrive at the designated port of discharge, and the buyer bears all the costs and risks from the start of unloading the goods on board.
DEQ (Delivered EX Quay): Delivery at destination port (designated destination port), means the goods will be delivered to the buyer, but no import clearance procedures, the seller bears all the costs and risks until the goods arrive at the port of discharge and unloaded to the quay. The buyer is responsible for all subsequent costs and risks.
DDU (Delivered Duty Unpaid): Delivery Duty Unpaid (Designated Destination) means that the seller will deliver the goods to the destination designated by the importing country to the buyer, without going through import formalities or unloading the goods from the means of delivery, that is, to complete the delivery. The seller shall bear all costs and risks associated with the shipment of the goods to the named destination, excluding any “taxes” payable at the time of importation at the destination when customs formalities are required (including the responsibility and risk of customs formalities and the payment of fees, duties, taxes and other charges). The Buyer must bear this “tax” and the costs and risks arising from its failure to clear the import of the goods in time.
DDP (Delivered Duty Paid): delivery after duty paid in the importing country (designated destination), means that the seller will transport the goods to the designated place in the importing country, the goods not yet unloaded on the delivery means of transport delivered to the buyer, the seller is responsible for import customs clearance procedures, delivery in the need for customs formalities at the destination of any import “taxes and fees payable “. The seller bears all costs and risks prior to delivery of the goods to the buyer. DDP is the trade term for which the seller has the greatest responsibility.