A) Rules covering all types of transport

 

EXW- Ex Works (Delivery at Work)

The seller informs the buyer by keeping the goods ready for the buyer’s order on the date decided before in his business. The buyer takes delivery of the goods from the company, prepares the necessary documents for export, completes the customs procedures and imports the goods into his own country. From the delivery of the goods to the company, all costs and risks related to the goods are borne by the buyer.

FCA – Free Carrier

As soon as the seller completes the customs procedures and transfers the goods to the custody of the first carrier on the specified date and place, the delivery process is completed. From this moment, all costs and risks related to the goods pass to the buyer. The shipping fee is paid by the buyer as well as all other expenses.

CPT – Shipping Paid To

The seller is responsible for paying the shipping to the destination. From the moment the goods are transferred to the custody of the first carrier, all risk and non-freight costs related to the goods pass to the buyer.

CIP – Transport and insurance paid to

The seller has the same obligations as in CPT. However, it must provide cargo insurance against the risk of loss or damage during the transportation of the goods.

DAT – Delivered at terminal

The goods are left at the disposal of the buyer at the final point determined by the buyer and the seller (this point may be a port or customs warehouse or the buyer’s factory), with the unloading costs borne by the seller. All customs procedures, costs, taxes, duties and charges arising from the customs belong to the buyer.

DAP – Delivered on site

It is to leave the goods at the buyer’s disposal on the transport vehicle ready for unloading at the unloading place determined by the buyer and the seller (a port pier, customs office, airport). All customs procedures, costs, taxes, duties and charges arising from the customs belong to the buyer. The seller is responsible for the transport costs for the goods to the designated location / terminal-related risks of loss

DDP – Delivered Duty Paid

The seller prepares the goods in accordance with the terms of the contract. It prepares the necessary documents to be used in its own country and in the buyer’s country. Complete export and import customs procedures. The carrier provides the vehicle and pays the shipping fee. All costs and risks related to the goods belong to the seller until delivery. It makes the delivery at the place and date determined in the buyer’s country by paying the customs fees. The buyer pays the price of the goods in accordance with the terms of the contract and receives the goods.

 

B) Rules specific to sea and inland shipping

 

FAS – Free Alongside Ship

The seller’s delivery obligation ends when the goods are placed on the quay or barge in line with the ship in the designated port. Loading, unloading, transport and insurance of the goods are paid by the buyer.

FOB – Free on board

The seller loads the goods on the vessel provided by the buyer on the specified date and place. All types of damage, losses and expenses that may occur after the goods have passed to the ship’s rail (deck) are the Buyer’s responsibility. The seller prepares all the necessary documents for export and delivers the goods after completing customs clearance.

CFR – Cost and Shipping

The seller assumes all costs and risks and takes the goods to the port where they are to be loaded. It performs the customs procedures and performs the loading by paying the shipping fee. From this moment on, all costs and risks related to the goods except shipping belong to the buyer.

CIF – Cost, insurance and freight

The seller takes the insurance premium, shipping and loading costs and risks and takes the goods to the port to be loaded. The seller agrees with the shipping agent and provides it. It notifies the buyer that the goods in the purchase contract have been loaded on the specified date and place. By paying the insurance premium, the seller takes out marine insurance with the narrowest scope suitable for the type of goods being loaded. After the goods are loaded on the ship, the costs and risk pass to the buyer in addition to freight and insurance premium.