Incoterms

Ex Works (EXW) signifies that the recipient retrieves goods from the supplier's premises, which could be a store or warehouse. The supplier is solely responsible for shipping the goods, with no further obligations. All expenses are shouldered by the recipient. Notably, EXW isn't suitable for transporting goods to the EU or if the recipient cannot export independently. Primarily designed for domestic traffic, EXW terms apply to goods transported by any means of transportation.

FOB, or Free On Board, signifies that the delivery is completed for the supplier when the product is on board the ship arranged by the recipient. FOB is solely intended for transporting goods by sea or inland waterway. The responsibilities of the supplier and the recipient are equally shared. The supplier covers export duty, packages the goods, transports them to the port, loads them on board, and provides necessary documentation. Conversely, the recipient arranges and pays for the ship, insures the goods, handles import duty, relevant certificates, licenses, etc. FOB is specifically designed for transporting goods in bulk or containers, as well as heavy equipment.

CFR, or Cost and Freight, implies that the delivery is considered complete for the supplier when the product is on board the ship arranged by the supplier to a designated port of destination. CFR terms are exclusively intended for transporting goods by sea or inland waterway. The supplier assumes responsibility for export duty, packaging the goods, and transporting them to the port, as well as loading the goods on board, hiring and paying for the ship, and providing the necessary documentation. Upon arrival, the recipient unloads the vessel, transports the goods to the final destination, insures the goods, handles import duty, relevant certificates, licenses, etc. CFR is specifically structured for transporting goods in bulk or containers, including heavy equipment.

CIF, or Cost, Insurance, and Freight, signifies that the delivery is fulfilled for the supplier when the product is loaded on board the vessel, insured by the supplier, and the vessel is chartered by them to transport the goods to the agreed destination port. CIF terms are exclusively intended for transporting goods by sea or inland waterway. The supplier is responsible for export duty, packaging, and transporting the goods to the port, loading them on board, hiring and paying for the ship, insuring the goods, and providing the necessary documentation. Upon arrival, the recipient unloads the vessel, pays import duty, handles relevant certificates, licenses, etc., and delivers the goods to the specified point in the agreement. CIF is structured to transport goods in bulk or containers, including heavy equipment.

DAP, or Delivered at Place, denotes that the delivery is considered complete for the supplier when the goods are delivered to the recipient and ready for unloading at the specified destination. The supplier is responsible for all export duties and costs associated with delivering the goods to the designated destination and unloading them. This includes paying export duty, packaging, transportation to the port, loading onto the ship, hiring and paying for the ship, providing relevant documentation, as well as paying for unloading from the ship and delivery to the final destination. The recipient unloads the goods upon arrival, insures them at their discretion, pays import duty, handles relevant certificates, licenses, etc. DAP terms are applicable for transporting goods by any means of transport.

DDP, or Delivered Duty Paid, signifies that the delivery is fulfilled for the supplier when the goods are delivered to the recipient, import duty paid, and the cargo is ready for unloading at the designated destination. DDP imposes maximum obligations on the shipper, in contrast to the EXW clause where all shipping responsibilities rest with the recipient. The recipient is only responsible for unloading the goods on the spot and may choose to insure the goods at their discretion. All other costs, including export and import payments, as well as transportation costs, are borne by the supplier. DDP terms are applicable for transporting goods by any means of transport.

DDU, or Delivered Duty Unpaid, signifies that the delivery is fulfilled for the supplier when the goods are delivered to the recipient at the designated destination. The supplier is responsible for all export duties and costs associated with delivering the goods to the specified destination. This includes paying export duty, packaging the goods, transportation to the port, loading onto the ship, hiring and paying for the ship, providing relevant documentation, and paying for delivery to the final destination. The recipient assumes responsibility for insuring the goods at their discretion, paying import duty, handling relevant certificates, licenses, etc., and unloading the vehicle at the spot. DDU terms are applicable for transporting goods by any means of transport.