In the international trade world, various agreements are made between sellers and buyers regarding the delivery terms of goods. Import delivery terms determine when responsibilities and risks are transferred between parties during trade transactions.
EXW (Ex Works)
EXW is the most basic delivery term where the seller prepares and presents the goods at the designated place. In this case, the seller is only responsible for preparing and delivering the goods, while the buyer is responsible for transportation and import procedures.
FCA (Free Carrier)
Under the FCA delivery term, the seller delivers the goods at a specified place, and the responsibility for transportation costs transfers to the buyer at a certain point. This point is where the goods are transferred from the seller to the buyer, and the buyer arranges for the goods to be received.
CIF (Cost, Insurance and Freight)
Under the CIF delivery term, the seller provides the goods to a specific port or destination point at a certain cost, including transportation, insurance, and freight expenses. After the goods are loaded onto the ship and transported to a certain point, the seller transfers the responsibility to the buyer.
FOB (Free On Board)
Under the FOB delivery term, the seller transfers the responsibility to the buyer by loading the goods onto a specified port or transport vehicle. After the goods are loaded onto the ship and transported to the destination port, the buyer is responsible for transportation, insurance, and import procedures.
CPT (Carriage Paid To)
Under the CPT delivery term, the seller delivers the goods to the carrier until a specific destination point and covers the transportation costs. The transportation risk up to a certain point is borne by the seller.
CIP (Carriage and Insurance Paid To)
Under the CIP delivery term, the seller delivers the goods to the carrier until a specific destination point and covers the transportation and insurance costs. The transportation risk up to a certain point is borne by the seller.
DAT (Delivered At Terminal)
Under the DAT delivery term, the seller delivers the goods to a specific arrival terminal and covers the transportation costs. The transportation risk up to the arrival terminal is borne by the seller.
DAP (Delivered At Place)
Under the DAP delivery term, the seller delivers the goods to a specific arrival point and covers the transportation costs. The transportation risk up to the arrival point is borne by the seller.
DDP (Delivered Duty Paid)
Under the DDP delivery term, the seller delivers the goods to a destination point specified by the buyer and is responsible for import procedures and customs duties until the goods are delivered to the buyer.
FAS (Free Alongside Ship)
Under the FAS delivery term, the seller carries the goods to a specific port and delivers them to the buyer. After the goods are brought alongside the port and made ready for loading onto the ship, the transportation risk transfers to the buyer.
CFR (Cost and Freight)
Under the CFR delivery term, the seller transports the goods to a specified port and covers the freight costs. After the goods are loaded onto the ship, the transportation risk transfers to the buyer.
