EXW (Ex W orks) ( … Named Plac e ): Indicates that the seller
fulfills the obligation to deliver when he or she has made the
goods available at his/her premises (that is, works, factory,
warehouse, etc.) to the buyer. In particular, the seller is not
responsible for loading the goods in the vehicle provided by the
buyer or for clearing the goods for export, unless otherwise
agreed. The buyer bears all costs and risks involved in taking
the goods from the seller’s premises to the desired destination.
This term, thus, represents the minimum obligation for the seller.
FCA (Free C a rrie r ) ( … Named Plac e ): Indicates that the seller
fulfills his or her obligation when he or she has handed over the
goods, cleared for export, into the charge of the carrier named
by the buyer at the named place or point. If no precise point
is indicated by the buyer, the seller may choose, within the
place or range stipulated, where the carrier should take the
goods into their charge.
FAS (Free A longside Ship ) ( … Named Port of Shipment ):
Indicates that the seller fulfills his obligation to deliver when the
goods have been placed alongside the vessel on the quay or in
lighters at the named port of shipment. This means that the buyer
has to bear all costs and risks of loss of, or damage to the goods
from that moment.
FOB (Free On Board) ( … Named Port of Shipment ): Indicates
that the seller fulfills his or her obligation to deliver when
the goods have passed over the ship’s rail at the named
port of shipment. This means that the buyer has to bear all
costs and risks to loss of, or damage to the goods from that
point. The FOB term requires the seller to clear the goods
for export.
CFR (Cost and Fre ight ) ( … Named Port of Destina tio n): Here,
the seller pays the costs and freight necessary to bring the
goods to the named port of destination, but the risk of loss of,
or damage to the goods, as well as any additional costs due
to events occurring after the time the goods have been delivered
on board the vessel, is transferred from the seller to the buyer
when the goods pass the ship’s rail in the port of shipment. The
CFR term requires the seller to clear the goods for export.
CIF (Cost, Insurance and Freight ) ( … Named Plac e of
Dest inat ion): Under this term, the seller has the same
obligations as under the CFR, but also has to procure marine
insurance against the buyer’s risk of loss or damage to the
goods during the carriage. The seller contracts for insurance
and pays the insurance premium. The CIF term requires the
seller to clear the goods for export.
CPT (C a rriage Paid To) ( … Named Plac e of Dest inat ion):
Requires that the seller pays the freight for the carriage of the
goods to the named destination. The risk of loss of, or damage to
the goods, as well as any additional costs due to events occurring
after the time the goods have been delivered to the carrier, is
transferred from the seller to the buyer when the goods have
been delivered into the custody of the carrier. If subsequent
carriers are used for the carriage to the agreed destination, the
risk passes when the goods have been delivered to the first carrier.
The CPT term requires the seller to clear the goods for export.
CIP (C a rriage and Insurance Paid To) ( … Named Place of
Dest inat ion): Here, the seller has the same obligations as
under CPT, but with the addition that the seller has to procure
cargo insurance against the buyer’s risk of loss of, or damage to
the goods during the carriage. The seller contracts for insurance
and pays the insurance premium. The buyer should note that
under the ClP term, the seller is required to obtain insurance
only on minimum coverage. The CIP term requires the seller to
clear the goods for export.
Best Regards,
Janey Gong(Sales Representative)
Guangxi Yulin Dongke Garment Factory
WeChat/Whatsapp/ Mobile:+8619897940276
Email: dk005@yldongke.com
Post time: Aug-16-2022