INCOTERMS
INCOTERMS
UDISPATCHING OF GOODS
EXW - Ex Works (name of the place) - in the place of production
The seller offers their goods from their premises. Buyer is responsible for all costs. This provision places the highest obligation on the buyer and the minimum responsibility on the seller. The term EXW is most often used when creating an initial offer, as it does not include any transportation costs. EXW means that the seller offers their goods in their premises on the agreed delivery day. The buyer pays all transport costs and assumes all risks of that transport to the final destination.
GROUP F - TRANSPORT UNPAID
FCA - Free Carrier (name of the place)
without transport at the place of delivery
without transport at the place of delivery
The seller must ensure the loading of their goods in the ship specified by the buyer, at the agreed port. The seller must also prepare the goods for export (pay the costs, provide the correct export documentation, etc.). This provision is used only for maritime transport, but not for maritime transport in containers. The buyer must give the seller instructions on the ship and the port where the buyer will pick up the goods.
FAS - Free Alongside Ship (name of port)without transportation by ship at the port of delivery
The seller must deliver the goods to the port of delivery, by ship. The seller must prepare the goods for export (pay the costs, provide the correct documentation for export, etc.). This provision is used only for maritime transport, but not for maritime transport in containers.
FOB - Free On Board (name of port) - without carriage loaded on board at the port of delivery
The seller must ensure the loading of their goods in the ship specified by the buyer, in the agreed port. The seller must also prepare the goods for export (pay the costs, provide the correct export documentation, etc.). This provision is used only for maritime transport, but not for maritime transport in containers. The buyer must give the seller instructions about the ship and the port where the buyer will pick up the goods.
GROUP D - ARRIVAL OF GOODS
DAT - Delivered At Terminal (name of terminal)
delivered and unloaded at the terminal without customs charges
delivered and unloaded at the terminal without customs charges
This provision is used when the seller delivers the goods to the buyer at the specified terminal, according to the sales contract. A terminal is considered any covered or uncovered place for unloading. It is also the seller's obligation to unload the goods at the designated terminal. All other obligations to pay import duties are to be settled by the buyer.
DAP - Delivered At Place (name of the place of destination)delivered to the place of destination without customs charges
This provision is used when the seller delivers the goods to the buyer at the specified terminal, according to the sales contract. No import duties were paid for the goods, nor were they unloaded from any form of transport vehicle at the place of delivery. The buyer bears the costs and risk of unloading, customs duties and possible further transport costs beyond the place of delivery.
DDP - Delivery Duty Paid (name of the place of destination) - Delivered with customs duties paid to
the place of destination
This provision means that the seller bears all transportation costs and risks to the place of destination, pays all the costs of customs clearance at the place of destination. This is the most favourable provision for the buyer, because in this case the buyer only bears the costs of unloading at the place of destination. Unloading costs may also be borne by the seller if this is explicitly stated in the sales contract. The provision is most often used in domestic trading, as it includes the costs of all taxes and VAT borne by the seller.
