EXW
Ex Works
The meaning of it is that the recipient takes the goods from the premises of the supplier, it can be a store, warehouse, etc. The supplier does not bear any obligations, except for the shipment of goods. All costs are borne by the recipient. EXW is not intended for the transport of goods to the EU. EXW is not used if the recipient is not able to export independently. EXW is for domestic traffic. EXW condition is used to transport goods by any means of transport.
WHO COVERS THE LOGISTICS CHARGES?
Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller
FCA
Free Carrier
Supplier produced, packed and prepared the cargo to be shipped. Goods are received by the buyer’s carrier, which picks up the load from the seller’s place. You can call FCA conditions “buyer’s pick-up."
FAS
FAS – FREE ALONGSIDE SHIP
The meaning of it is that the delivery is completed for the supplier when the product is on the quay for loading on vessel hired by the recipient. FAS is intended only for transporting goods by sea or inland waterway. Supplier pays the export duty, packaging of goods and transportation of cargo to the port, as well as the possible costs of arrival at the port, and provides the relevant documentation. Recipient loads the goods onto the ship, hires and pays the ship, bears all the costs of transporting the goods to the destination, insures the goods, pays import duty, relevant certificates, licenses, etc. FAS is designed to transport goods in bulk or in containers, and also for transportation of heavy equipment.
WHO COVERS THE LOGISTICS CHARGES?
Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller
FOB
FOB - FREE ON BOARD (NAMED PORT OF LOADING)
The meaning of it is that the delivery is completed for the supplier when the product is on board the ship hired by the recipient. FOB is intended only for transporting goods by sea or inland waterway. The responsibilities of the supplier and the recipient are shared equally. Supplier pays export duty, packaging the goods and transportation of the cargo to the port, loads the goods on board and provides the relevant documentation. Recipient hires and pays the ship, insures the goods, pays import duty, relevant certificates, licenses, etc. FOB is designed to transport goods in bulk or in containers, and also for transportation of heavy equipment
WHO COVERS THE LOGISTICS CHARGES?
Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller
CFR
CFR/C&F - COST AND FREIGHT (NAMED PORT OF DESTINATION)
The meaning of it is that the delivery is completed for the supplier when the product is on board the ship hired by the supplier to a port of destination. CFR is intended only for transporting goods by sea or inland waterway. Supplier pays export duty, packaging the goods and transportation of the cargo to the port, loads the goods on board, hires and pays the ship and provides the relevant documentation. Recipient unloads the vessel, delivers the goods to the destination, insures the goods, pays import duty, relevant certificates, licenses, etc. CFR is designed to transport goods in bulk or in containers, and also for transportation of heavy equipment.
WHO COVERS THE LOGISTICS CHARGES?
Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller
CIF
CIF - COST, INSURANCE AND FREIGHT (NAMED PORT OF DESTINATION)
The meaning of it is that the delivery is completed for the supplier when the product came on board the vessel, products have been insured by the supplier, and the vessel was hired by him to transport the goods to the destination port, which is established in the agreement. CIF is intended only for transporting goods by sea or inland waterway. Supplier pays export duty, packaging the goods and transportation of the cargo to the port, loads the goods on board, hires and pays the ship, insures the goods and provides the relevant documentation. Recipient unloads the vessel, pays import duty, relevant certificates, licenses, etc., delivers the goods to the point set in the agreement. CIF is designed to transport goods in bulk or in containers, and also for transportation of heavy equipment.
WHO COVERS THE LOGISTICS CHARGES?
Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller
CIP
CIP - CARRIAGE AND INSURANCE PAID ТO (NAMED PLACE OF DESTINATION)
The meaning of it is that the delivery is completed for the supplier when customs procedures for export were completed, paid insurance policy and the goods were transferred to the forwarder for transportation to a specific destination provided for in the agreement. Sum insured must be 110% of the value of the agreement and in the currency of the international agreement. All risks associated with the transportation of goods pass from supplier to recipient after delivery of the goods to the forwarder. CIP is concluded on the basis of an international contract of sale, which indicates all the responsibilities and what expenses each party bears. As a rule, the supplier bears all responsibilities with the delivery, insurance policy and clearance of goods to a specific destination.
WHO COVERS THE LOGISTICS CHARGES?
Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller
CPT
CPT - CARRIAGE PAID TO (NAMED PLACE OF DESTINATION)
The meaning of it is that the delivery is completed for the supplier when customs procedures for export were completed and the goods were transferred to the forwarder for transportation to a specific destination specified in the contract. All risks associated with the transportation of goods pass from supplier to recipient after delivery of the goods to the forwarder. CPT is concluded on the basis of an international contract of sale, which indicates all the responsibilities and what expenses each party bears. As a rule, the supplier bears all responsibilities with the delivery and clearance of goods to a specific destination. Under CPT conditions, the recipient must insure the goods, unlike the CIP and CIF conditions.
WHO COVERS THE LOGISTICS CHARGES?
Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller
DAP
DAP — DELIVERED AT PLACE
The meaning of it is that the delivery is completed for the supplier when the goods are delivered to the recipient and ready for unloading at the indicated destination. Supplier must pay all export duties and costs for the delivery of the goods to the specified destination, its unloading. Supplier pays export duty, packaging the goods and transportation of the cargo to the port, loads the goods on board, hires and pays the ship, provides the relevant documentation, and also pays for unloading from the ship and delivery to the final destination. Recipient unloads a vehicle on spot, insures the goods at will, pays import duty, relevant certificates, licenses, etc. DAP is used to transport goods by any means of transport.
WHO COVERS THE LOGISTICS CHARGES?
Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller
DPU
DPU — DELIVERED NAMED PLACE UNLOADED
The meaning of it is that the delivery is completed for the supplier when the goods are placed at the disposal of the recipient at the indicated place. Supplier must bear all costs for export duties and delivery of goods to the specified destination, including its unloading. Supplier pays for export duty, packaging the goods and transportation of the cargo to the port, loads the products on board, hires and pays the ship, engages in unloading from a ship, and optionally delivers and unloads at the destination. Recipient insures the goods at will, pays import duty, relevant certificates, licenses, etc. DPU is used to transport goods by any means of transport.
WHO COVERS THE LOGISTICS CHARGES?
Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller
DDP
DDP — DELIVERED DUTY PAID
The meaning of it is that the delivery is completed for the supplier when the goods are delivered to the recipient, import duty paid and cargo ready for unloading at the indicated destination. DDP clause implies maximum obligations for the shipper, as opposed to EXW clause, where all shipping responsibilities are placed on the recipient. Recipient assumes only the unloading of goods on the spot and insurance of the goods at will. All other costs are transferred to the supplier (export and import payments, costs of transportation of goods) DDP is used to transport goods by any means of transport.
WHO COVERS THE LOGISTICS CHARGES?
Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller
CNI
CNI – (COST AND INSURANCE)
The term means that delivery is completed for the supplier, if the goods are insured, placed at the indicated port of shipment This term is included in category “C” and means that all duties for the safety of the goods are transferred at the point of departure from the supplier to the recipient. Also, this concept will allow the supplier-exporter to be responsible for the international insurance coverage of the goods. CNI contract terms include the cost of international insurance coverage at the expense of the supplier, and does not include freight (difference between CNI and CRF/CIF). The term is intended to eliminate all inaccuracies between the terms FCA and CFR / CIF.
WHO COVERS THE LOGISTICS CHARGES?
Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller
DTP
DTP DELIVERED AT TERMINAL PAID
The meaning of it is that the delivery is completed for the supplier when the goods are delivered to the port in the recipient's country of destination. Supplier must pay all costs for the delivery of goods to the port together with unloading from board, export and import duties. Supplier pays export duty, packaging the goods and transportation of the cargo to the port, loads the goods on board, hires and pays the ship, discharges the cargo from ship pays import duty and provides the relevant documentation. Recipient delivers the goods to the point specified in the agreement, unloads vehicle on spot, insures the goods at will, pays relevant certificates, licenses, etc.DTP is used to transport goods by any means of transport.
WHO COVERS THE LOGISTICS CHARGES?
Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller
DPP
DPP DELIVERED AT PLACE PAID
The meaning of it is that the delivery is completed for the supplier when the goods are delivered to the recipient and ready for unloading at the indicated destination. Supplier must pay all costs for the delivery of the goods to the specified destination, its unloading, export and import duties. Supplier pays export duty, packaging the goods and transportation of the cargo to the port, loads the goods on board, hires and pays the ship, and also pays for unloading from the ship, pays import duty, provides the relevant documentation and delivery to the final destination. Recipient unloads a vehicle on spot, insures the goods at will, pays relevant certificates, licenses, etc. DPP is used to transport goods by any means of transport.
WHO COVERS THE LOGISTICS CHARGES?
Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller
DAT
DAT - DELIVERED AT TERMINAL (NAMED TERMINAL AT PORT OR PLACE OF DESTINATION)
The meaning of it is that the procurement is completed for the supplier when the loads are available to the recipient at the destination terminal. Supplier must bear all costs for export duties and supply of cargo to the specified destination, including its unloading. Supplier pays for export duty, packaging the goods and transportation of the goods to the port, loads the products on board, hires and pays the ship, engages in unloading from a vessel. Recipient insures the cargo at will, pays delivery to destination, import duty, unloading, relevant certificates, licenses, etc. DAT is used to transport cargo by any means of transport.
WHO COVERS THE LOGISTICS CHARGES?
Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller
DDU
DDU - DELIVERED DUTY UNPAID (NAMED PLACE OF DESTINATION)
The meaning of it is that the delivery is completed for the supplier when the goods are delivered to the recipient at the indicated destination. Supplier must pay all export duties and costs for the delivery of the goods to the specified destination. Supplier pays export duty, packaging the goods and transportation of the cargo to the port, loads the goods on board, hires and pays the ship, provides the relevant documentation, and also pays for delivery to the final destination. Recipient insures the goods at will, pays import duty, relevant certificates, licenses, etc. and unloads a vehicle on spot. DDU is used to transport goods by any means of transport.
WHO COVERS THE LOGISTICS CHARGES?
Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller
DES
DES - DELIVERED EX SHIP (NAMED PORT OF DESTINATION)
The meaning of it is that the delivery is completed for the supplier when the goods are delivered to the recipient at the indicated port of destination. Supplier must pay all export duties and costs for the delivery of the goods to the specified destination. DES is intended only for transporting goods by sea or inland waterway. Supplier pays export duty, packaging the goods and transportation of the cargo to the port, loads the goods on board, hires and pays the ship, engages in unloading from a ship. Recipient insures the goods at will, arranges last mile delivery, pays import duty, relevant certificates, licenses, etc. and unloads a vehicle on spot. DES is designed to transport goods in bulk or in containers, and also for transportation of heavy equipment.
WHO COVERS THE LOGISTICS CHARGES?
Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller
DEQ
DEQ - DELIVERED EX QUAY (NAMED PORT OF DESTINATION)
The meaning of it is that the delivery is completed for the supplier when the goods are placed at the disposal of the recipient at the indicated port. DEQ is intended only for transporting goods by sea or inland waterway. Supplier must bear all costs for export duties and delivery of goods to the specified destination, including its unloading. Supplier pays for export duty, packaging the goods and transportation of the cargo to the port, loads the products on board, hires and pays the ship, engages in unloading from a ship and covers port fees to bring the cargo ex quay. Recipient insures the goods at will, pays import duty, relevant certificates, licenses, etc., delivers and unloads cargo at destination. DEQ is designed to transport goods in containers, and also for transportation of heavy equipment.
WHO COVERS THE LOGISTICS CHARGES?
Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller
DAF
DAF - Delivered At Frontier (named place)
The meaning of it is that the delivery is completed for the supplier when the goods are delivered to the recipient at the specified location on the border. Supplier must pay all export duties and costs for the delivery of the goods to the specified destination. Supplier pays export duty, packaging the goods and transportation of the cargo to the port, loads the goods on board, hires and pays the ship, for unloading from the ship and delivery to the named place on border, provides the relevant documentation. Recipient arranges last mile delivery, insures the goods at will, pays import duty, relevant certificates, licenses, etc. and unloads a vehicle on spot DAF is used to transport goods by any means of transport.
WHO COVERS THE LOGISTICS CHARGES?
Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller