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INCOTERMS such as FOB, CIF and DDU have become part of the language of international trade and are in constant use throughout the world. INCOTERMS are the work of the International Chamber of Commerce and are available in their full form through the ICC's publication "INCOTERMS 2000". We recommend the interpretation below to be used as a guide only.  EXW Ex Works (… named place) "Ex works" means that the seller 'only responsibility is to place the goods at the disposal of the buyer at his own premises or another named place. He has no responsibility for clearing the goods for export nor for loading. FCA Free Carrier (… named place) "Free Carrier" means that the seller's obligations are filled when the goods, cleared for export, are delivered to the Carrier, nominated by the buyer at the named place. "Carrier" is defined as any person who, in a contract
of carriage, undertakes to perform or to procure the performance
of transport by rail, road, air, sea, inland waterway or by a combination
of such modes.
FAS Free Alongside Ship (… named port of shipment) "Free Alongside Ship" means that the seller's obligation is met when the goods, cleared for export, are placed alongside the vessel on the quay at the named port of shipment FOB Free On Board (… named port of shipment) "Free on Board" means that the risk transfers to the buyer when the goods, cleared for export, pass over the ship's rail at the named port of shipment. CFR Cost and Freight (… named port of destination) "Cost and Freight" means that the risk transfers to the buyer when the goods, cleared for export, pass over the ship's rail at the named port of shipment, BUT cost and freight to the named port of destination must be paid by the seller. CIF Cost Insurance and Freight (…named port of destination) Similar to CFR; however in CIF the seller also has to contract for insurance against risks during the carriage and pay the insurance premium. CPT Carriage Paid To (…named place of destination) Freight for the carriage of the goods, cleared for export, to the named destination must be paid by the seller. Nevertheless, when the goods are delivered to the first carrier. the risk is transferred to the buyer CIP Carriage and Insurance Paid To (…named place of destination) Similar to CPT; however in CIP the seller also has to contract for insurance against risks during the carriage and pay the insurance premium. DAF Delivery At Frontier (… named place) "Delivery At Frontier" means that the seller's obligations are met when the goods have arrived at the named point and place at the frontier, cleared for export but not cleared for import, before the customs border of the country named in the contract. DES Delivered Ex Ship (…named port of destination) "Delivered Ex Ship" means that the seller is responsible for all risks and charges until the goods are placed at the disposal of the buyer on board the ship at the named port of destination, not cleared for import. DEQ Delivered Ex Quay (…named port of destination) Similar to DES; BUT in DEQ the seller is responsible until the goods are placed on the quay. DDU Delivered Duty Unpaid (…named place of destination) "Delivered Duty Unpaid" means that the seller's obligation is met when the goods, not cleared for import and not unloaded, are delivered to the buyer at the named place of destination. DDP Delivered Duty Paid (…named place of destination) Similar to DDU, BUT in DDP, the seller must also clear the goods for import.
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