Ex W  "Ex works" means the seller's  only responsibility is to make the goods available at the seller's premises, i.e., the  works or factory. The seller is not responsible for loading the goods on the vehicle  provided by the buyer unless otherwise agreed. The buyer bears the full costs and risk  involved in bringing the goods from there to the desired destination. Ex works represents  the minimum obligation of the seller.

Free Carrier or FCA  This term  has been designed to meet the requirements of multimodal transport, such as container or  roll-on, roll-off traffic by trailers and ferries. It is based on the same name principle  as F.O.B. (free on board), except the seller fulfills its obligations when the goods are  delivered to the custody of the carrier at the named point. If no precise point can be  named at the time of the contract of sale, the parties should refer to the place where the  carrier should take the goods into its charge. The risk of loss or damage to the goods is  transferred from seller to buyer at that time and not at the ship's rail. The term  "carrier" means any person by whom or in whose name a contract of carriage by  road, rail, air, sea, or a combination of modes has been made. When a seller has been  furnished a bill of lading, way bill or carrier's receipt, the seller duly fulfills its  obligation by presenting such a document issued by a carrier.

FOR or FOT "F.O.R." and "F.O.T." mean "free on rail" or "free on  truck." Both refer to goods being carried by rail and should only be used when the  goods are carried by rail. The risk of loss or damage is transferred when the goods are  loaded onto the rail.

FAS "F.A.S." or "free alongside  ship" requires the seller to deliver the goods alongside the ship on the quay. From  that point on, the buyer bears all costs and risks of loss and damage to the goods. Unlike  F.O.B., F.A.S. requires the buyer to clear the goods for export and pay the cost of  loading the goods.

FOB Under "F.O.B." or "free on  board," the goods are placed on board the ship by the seller at a port of shipment  named in the sales agreement. The risk of loss of or damage to the goods is transferred to  the buyer when the goods pass the ship's rail (i.e., off the dock and placed on the ship).  The seller pays the cost of loading the goods.

FOB Airport. This term is very similar to the  ordinary F.O.B. term. The seller fulfills its obligation by delivering the goods to the  air carrier at the airport of departure. The risk of loss is transferred from the seller  to the buyer at such time.

C & F "C. & F." or "cost  and freight" (also abbreviated CFR) requires the  seller to pay the costs and freight necessary to bring the goods to the named destination,  but the risk of loss or damage to the goods, as well as any cost increases, are  transferred from the seller to the buyer when the goods pass the ship's rail in the port  of shipment. Insurance is the buyer's responsibility.

CIF "C.I.F."-- meaning "cost, insurance,  and freight"--is C. & F. with the additional requirement that the seller procure  transport insurance against the risk of loss or damage to goods. The seller must contract  with the insurer and pay the insurance premium. Insurance is generally more important in  international shipping than domestic shipping, because U.S. laws generally hold a common  carrier to be liable for lost or damaged goods.

Freight/Carriage Paid To orCPT. This  term means the seller pays the freight for the carriage of the goods to the named  destination. The risk of loss or damage to the goods and any cost increases transfers from  the seller to the buyer when the goods have been delivered to the custody of the first  carrier, and not at the ship's rail. Accordingly, "freight/carriage paid to" can  be used for all modes of transportation, including container or roll-on roll-off traffic  by trailers and ferries. When the seller is required to furnish a bill of lading, way  bill, or carrier receipt, the seller duly fulfills its obligation by presenting such a  document issued by the person contracted with for carriage to the main destination.

Freight/Carriage and Insurance Paid To . This term (also abbreviated CIP) is the same as "freight/carriage paid to" but with  the additional requirement that the seller has to procure transport insurance against the  risk of loss or damage to the goods during the carriage. The seller contracts with the  insurer and pays the insurance premium.

Ex Ship. "Ex ship" (DES)  means the seller shall make the goods available to the buyer on board the ship at the  destination named in the sales contract. The seller bears the full cost and risk involved  in bringing the goods there. The cost of unloading the goods and any customs duties must  be paid by the buyer.

Ex Quay. "Ex quay" (DEQ)  means the seller has agreed to make the goods available to the buyer on the quay or the  wharf at the destination named in the sales contract. The seller bears the full cost and  risks in delivering the goods to that point including unloading. There are two variations  of ex quay contracts: "ex quay duty paid" and "ex quay duty on buyer's  account." In the first, the duty is paid by the seller. In the second, the duty also  is paid by the seller, but the buyer must reimburse the seller.

Delivered at Frontier. "Delivered at frontier" or "DAF." means that the seller's obligations are  fulfilled when the goods have arrived at the frontier but before the customs border of the  country named in the sales contract. The term is primarily used when goods are carried by  rail or truck. The seller bears the full cost and risk in delivering the goods up to this  point, but the buyer must arrange and pay for the goods to clear customs.

Delivery/Duty Paid. "Delivery/duty paid" or "DDP." represents the seller's maximum obligation. The term  "DDP." is generally followed by words indicating the buyer's premises. It notes  that the seller bears all risks and all costs until the goods are delivered. This term can  be used irrespective of the mode of transport. If the parties wish to make clear that the  seller is not responsible for certain costs, additional word should be added (for example,  "delivered duty paid exclusive of VAT and/or taxes").

Incoterms

Delivery Duty Unpaid Delivered duty paid or DDU

Under these terms, the seller fulfills his obligation to deliver when the goods have  been available to the buyer uncleared for import at the point or place of the named  destination. The seller bears all costs and risks involved in bringing the goods to the  point or place of named destination. There is no obligation for import clearance.