Cost and Freight terms specify that the seller pays the cost and freight until the good reaches the named port of destination. Once the goods are on board, the risk of loss or damage is solely dependent on the buyer. The buyer has to bear all the additional charges, including the insurance coverage of goods, for any damages caused after the goods reach the destined port. Under the CFR term, the seller is responsible for export clearance of goods.
Cost, Insurance and Freight terms cover every obligation as specified under the CFR term. Additionally, the risk of loss or damage of goods, including the insurance coverage until the goods reach the named port of destination, is abode by the seller. The CIF term specifies that the seller is responsible for the clearance of goods for export.
Carriage and Insurance Paid to terms covers every obligation under CPT terms. Furthermore, the seller is responsible to cover the goods under an insurance premium to avoid the risk of loss or damage during the transit. Under the CIP term, the responsibility of clearance of goods for export is abiding by the seller.
Carriage Paid To terms specifies that the seller is responsible for the freight of carriage of the goods to the named port of destination. Once handed over to the carrier, the risk of loss or damage of the goods along with the insurance charges is solely dependent on the buyer. A carrier can be a single person, in a contract of carriage, who undertake carriage by single or combination mode. The risk will be passed on from one to the other until the goods reach the destination if transported in the combination mode.
Delivered at Place terms specifies that the seller bears the cost of carriage and delivery of goods until it reaches the named destination. DAP term applies to any mode of transport or combinational mode. The customs clearance of goods and local taxes are abode by the buyer.
Delivery Duty Paid terms specifies that the seller is obliged to deliver the goods ordered by the buyer at the destined location regardless of the country. The seller must make necessary arrangements for import clearance at the country of importation and have to bear the charges paid as duties, taxes, and delivery.
Delivery at Place Unloaded terms specifies that the seller must deliver and unload the goods ordered by the buyer at the destined place in the country of importation. The customs clearance and the payment of local taxes and duties are reliant on the buyer.
Ex-works terms specifies that the seller is obligated to supply and deliver the goods ordered at the buyer's location or another named place (work, factory, warehouse, etc.) of destination. The seller is neither responsible for the loading of goods nor export clearance, unless agreed beforehand. The buyer has to bears all financial responsibilities and risks involved in the carriage of goods from the seller’s or his indicated premises to the desired destination
Free Alongside Ship terms specifies that the seller is obliged to deliver the goods ordered by the buyer alongside the vessel at the named port of shipment. According to FAS, the customs clearance of goods for export is reliant on the seller. However, if both the parties come to a contract that the buyer meets the customs clearance requirement at the port, it has to be explicitly specified in the sale contract.
Free carrier terms specifies that the seller is obliged to deliver the goods ordered by the buyer, clear the export formalities, and hand them over to the carrier nominated by the buyer at the named place. If no place is specified by the buyer, the seller may choose a place or stipulated range where the goods can be handed over to the carrier. The risk of loss or damage to the goods until being handed over to the nominated carrier has to be borne by the seller. The buyer must provide sufficient information about the nominated carrier. If necessary, the buyer has to inform the seller about the mode of transport and period of delivery of goods to the assigned carrier.
Free On Board terms specifies that the seller is obliged to deliver the goods ordered by the buyer to the ship’s rail at the named port of shipment, including the export clearance. The risk of loss of or damage to the goods and any additional charges at the named port of shipment is reliant on the buyer.