There are 11 international trade terms, which are divided into four groups: EXW (departure), FCA , FAS , FOB (main freight unpaid), CFR , CIF , CPT , CIP (main freight paid), DAP , DPU and DDP (arrival). From EXW (the seller has the least responsibility) to DDP (the seller is all-inclusive), the responsibility and risk are gradually transferred to the buyer along the transportation link, and the applicable one needs to be selected according to the mode of transportation and the division of rights and responsibilities. FNT Steel Furniture can offer best advice according your requirements.
1. EXW (Ex Works)
- Seller’s Responsibilities: The goods are prepared at a designated location (usually the seller’s factory or warehouse) without loading. Provide commercial invoice or electronic voucher.
- Buyer’s Responsibilities: Bear all costs and risks after picking up the goods from the seller’s location (including export customs clearance, transportation, insurance, etc.).
- Risk transfer: When the goods are delivered to the buyer’s disposal.
- Applicable transportation: Any mode
2. FCA (Free Carrier)
- Seller’s Responsibilities: Delivery is completed at a designated location (such as a carrier’s warehouse or port designated by the buyer). Complete export customs clearance procedures.
- Buyer’s Responsibilities: Designate the carrier and notify the seller to bear the transportation costs and risks after delivery.
- Risk transfer: Risk transfers when the goods are delivered to the carrier.
- Applicable transportation: Any mode
3.FAS (Free Alongside Ship)
- Seller’s Responsibilities: Deliver the goods to the ship’s side (dock or barge) at the designated port of shipment. Handle export customs clearance.
- Buyer’s Responsibilities: Bear all costs and risks after delivery beside the ship (including loading, shipping, insurance, etc.).
- Risk transfer: Risk transfers when the goods reach the vessel’s side.
- Applicable transportation: Sea or inland waterway transportation.
4.FOB (Free On Board)
- Seller’s Responsibilities: Load the goods onto the vessel designated by the buyer and complete export customs clearance.
- Buyer’s Responsibilities: Bear all costs and risks after the goods are loaded on board (such as shipping, insurance, and import customs clearance).
- Risk transfer: Risk transfers when the goods pass over the ship’s rail.
- Applicable transportation: Sea or inland waterway transportation.
5.CFR (Cost and Freight)
- Seller’s Responsibilities: Pay the freight for the goods to be transported to the destination port and complete the export customs clearance. Not responsible for insurance .
- Buyer’s Responsibilities: Assume the risk after the goods are loaded on board and purchase insurance on your own.
- Risk transfer: Risk transfers when the goods pass over the ship’s rail.
- Applicable transportation: Sea or inland waterway transportation.
6.CIF (Cost, Insurance and Freight)
- Seller’s Responsibilities: Pay the freight and the minimum insurance (such as CIC terms) and complete the export customs clearance.
- Buyer’s Responsibilities: Assume the risk of the goods after they are loaded on board (even if the seller takes out insurance, the risk still belongs to the buyer).
- Risk transfer: Risk transfers when the goods pass over the ship’s rail.
- Applicable transportation: Sea or inland waterway transportation.
7. CPT (Carriage Paid To)
- Seller’s Responsibilities: Pay the freight for the goods to the designated destination and complete the export customs clearance. Not responsible for insurance.
- Buyer’s Responsibilities: The carrier assumes the risk after the goods are delivered to the first carrier and can purchase insurance on its own.
- Risk transfer: Risk transfers when the goods are delivered to the first carrier.
- Applicable transportation: Any method.
8. CIP (Carriage and Insurance Paid To)
- Seller’s Responsibilities: Pay the freight and purchase the minimum risk insurance to complete export customs clearance.
- Buyer’s Responsibilities: Assume the risk after the goods are delivered to the first carrier (even if the seller has insurance).
- Risk transfer: Risk transfers when the goods are delivered to the first carrier.
- Applicable transportation: Any method.
9. DAT (Delivered at Terminal)
- Seller’s Responsibilities: Transport the goods to the designated destination (such as port, airport, warehouse) and unload them to complete export customs clearance.
- Buyer’s Responsibilities: Bear all costs and risks (such as import taxes, local transportation) after the goods arrive at the terminal.
- Risk transfer: Transferred after unloading at destination.
- Applicable transportation: Any method.
10. DAP (Delivered at Place)
- Seller’s Responsibilities: Transport the goods to the designated destination (without unloading) and complete export customs clearance.
- Buyer’s Responsibilities: Assume the risk of the goods once they arrive at the destination and be responsible for unloading and import customs clearance.
- Risk transfer: Risk transfers when the goods arrive at the designated place.
- Applicable transportation: Any method.
11. DDP (Delivered Duty Paid)
- Seller’s Responsibilities: Bear all costs and risks (including transportation, insurance, import and export duties) and deliver the goods to the place designated by the buyer.
- Buyer’s Responsibilities: Just receive the goods at the destination.
- Risk transfer: Risk transfers when the goods are delivered to the buyer.
- Applicable transportation: Any method.
Contact Us
Click the right Online service on our website
Send us an email: [email protected]
Leave a message on our website.
WhatsApp/Wechat: +86 13937913510
