Inco terms are briefly described here, though we recommend a full and comprehensive study of the term/s is made to be aware of all the obligations and risks to be undertaken.
EXW = Ex Works – seller makes goods available at his warehouse, the carriage is arranged/paid by buyer.
FCA = Free Carrier – seller arranges/pays for pre-carriage to named place in country of export.
CPT = Carriage Paid To – seller arranges/pays for carriage to a named place of destination.
CIP = Carriage and Insurance Paid – as CPT, plus seller insures the freight.
DAT = Delivered at Terminal – seller arranges/pays for carriage to an agreed terminal at the port or place of destination.
DAP = Delivered at Place – seller arranges/pays for carriage to an agreed place of destination.
DDP = Delivered, Duty Paid – seller arranges/pays for carriage to an agreed place of destination including all import duties, customs formalities and local taxes.
Delivery occurs at the named destination on vehicle, but the unloading is the buyer’s responsibility.
(Note, terms DAF, DES, DEQ and DDU now obsolete).
FAS = FREE ALONGSIDE SHIP: seller arranges/pays for pre-carriage to a named port of shipment
FOB = FREE ON BOARD: seller arranges for pre-carriage to a named port of shipment paying for all costs to on board vessel.
CFR = COST AND FREIGHT: seller arranges/pays for carriage to arrival destination port.
CIF = COST INSURANCE AND FREIGHT: as CFR plus seller insures the freight.
Note the phrase over ship’s rail is now obsolete.
All business is carried out under the current BIFA standard trading terms and conditions which are available upon request.