Trade Terms For International Freight Forwarders

FOB free on board (...)

Named port of shipment)

"On board (...)

"The named port of shipment" is when the goods pass the ship's rail at the named port of shipment, the seller completes the delivery.

This means that the buyer must take all risks of loss or damage to the goods from that point.

The FOB term requires the seller to handle the goods.

FAS ship by ship (...)

Named port of shipment)

"Ship by ship (...)

"The named port of shipment" means that the seller delivers the goods to the side of the ship at the named port of shipment, that is, the delivery is completed.

The buyer must bear all risks of loss of or damage to the goods from then on.

FCA delivery to the carrier (...

Designated location)

"Cargo carrier" (...

"Designated place" means that the seller, as long as he delivers the goods at the designated place to the buyer's designated carrier and completes the export clearance, is to complete the export contract.

CIP carriage and insurance paid to...

Designated destination)

"Carriage and insurance paid to...

"Designated destination" means the delivery of the goods to the named carrier, but the seller must also pay the freight to the destination, that is, the buyer bears all the risks and additional charges after the seller delivers the goods.

However, according to CIP

CPT carriage paid to...

Designated destination)

"Carriage paid to...

"Designated place" means the delivery of the goods to the named carrier, but the seller must also pay the cost of pporting the goods to the destination.

That is, the buyer bears all risks and other expenses after delivery.

CIF cost, insurance and freight (...

Designated port of destination)

"Cost, insurance and freight" means that the seller delivers the goods when the goods pass the ship's side at the port of shipment.

CFR cost plus freight (...

Designated port of destination)

Cost plus freight (...

"The named port of destination" means that the seller delivers the goods over the ship's side at the port of shipment, and the seller must pay the freight and charges necessary for the goods to be delivered to the named port of destination.

However, the risk of loss or damage to the goods after delivery and any additional costs due to various events shall be pferred from the seller to the buyer.

EXW ex works (...)

Designated location)

Ex works (...)

"Designated place" "means that when the seller delivers the goods to the buyer at his place or other designated place, such as workshops, factories or warehouses, that is, when the goods are delivered, the seller does not go through the export clearance procedures or the goods are loaded on any conveyance.

{page_break}

DEQ ex port ex port (...

Designated port of destination)

"Port of destination delivery" means that the seller delivers the goods to the buyer at the port of destination, and does not deal with import clearance, that is, the delivery is completed.

The Seller shall bear all risks and charges for pporting the goods to the named port of destination and discharging it to the wharf.

DES port of destination (...)

Designated port of destination)

"Delivered Ex Ship (...)

"The named port of destination" means that the goods are delivered to the buyer on the ship at the named port of destination, but the seller will deliver the goods without customs clearance.

The seller must bear all risks and charges before the goods are delivered to the port of destination.

If the parties wish the seller to bear the risk and cost of unloading, the DEQ terminology should be used.

DDP delivery after duty payment (...

Designated port of destination)

Delivery after duty (...)

"Designated destination" means that the seller completes the import customs clearance at the designated destination, and delivers the goods that he has not yet unloaded on the means of delivery to the buyer to complete the delivery.

The seller must bear all the risks and costs of pporting the goods to the named place of destination, including any "taxes and fees" payable at the destination at the time of customs formalities, including the duties and risks of going through customs formalities, and the handling of fees, duties, taxes and other charges.

DDU duty paid delivery (...)

Designated port of destination)

Delivered duty unpaid (...

"The designated destination" means that the seller delivers the goods to the buyer at the designated destination, not importing the goods, nor unloading the goods from the means of delivery.

The Seller shall bear all risks and costs of pporting the goods to the named place of destination, excluding any "taxes and charges" (including the duties and risks of handling customs formalities, as well as the handling of duties, duties, taxes and other charges) that should be paid to the destination country when the customs is required.

The buyer must bear the "taxes and charges" and the costs and risks arising from the failure to import the goods for customs clearance in time.

DAF delivered at frontier (...)

Designated location)

Delivery on the frontier (...

"Designated place" refers to the goods delivered to the buyer at the designated place and the specific delivery point at the border before the customs frontier of the neighboring country, which has not yet been unloaded on the means of delivery. The goods have been cleared for customs clearance but have not yet been cleared for import.

The term "frontier" can be applied to any frontier, including the border of the exporting country.

Therefore, it is extremely important to define the frontier accurately by specifying the location and the specific delivery point.