INCOTERMS

EXW – EXW means Ex Works and is followed by a named place, for example EXW Dallas. EXW means the seller’s responsibility is to make the goods available at the seller’s premises. The seller is not responsible for loading the goods on the vehicle provided by the buyer, who then bears the full cost involved in bringing the goods from there to the desired destination.

Main Carriage Not Paid By Seller (Group F)
FCA – FCA means Free Carrier and is followed by a named place, for example FCA Cairo city. FCA means the seller fulfills its obligation to deliver when it has handed over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place. If no precise point is indicated by the buyer, the seller may choose within the place or range stipulated where the carrier shall take the goods into its charge.
FAS – FAS means Free Alongside Ship and is followed by a named port of shipment, for example FAS Beirut. FAS means the seller is responsible for the cost of transporting and delivering goods alongside a vessel in a port in his country.  FAS should be used only for ocean shipments since risk and responsibility shift from seller to buyer when the goods are placed within the reach of the ship’s crane.
FOB – FOB means Free On Board and is followed by the named port of shipment, for example FOB Lattakia. With FOB the goods are placed on board the ship by the seller at a port of shipment named in the sales agreement. The risk of loss of or damage to the goods is transferred to the buyer when the goods pass the ship’s rail, i.e. off the dock and placed on the ship. The seller pays the cost of loading the goods.
Main Carriage Paid By Seller (Group C)
CFR – CFR (C&F) means Cost and Freight and is followed by a named port of destination, for example CFR Sydney. CFR requires the seller to pay the costs and freight necessary to bring the goods to the named destination, but the risk of loss or damage to the goods, as well as any cost increases, are transferred from the seller to the buyer when the goods pass the ship’s rail in the port of shipment. Insurance is the buyer’s responsibility.
CIF – CIF means Cost, Insurance and Freight and is followed by a named port of destination, for example CIF Istanbul. CIF is similar to CFR with the additional requirement that the seller purchases insurance against the risk of loss or damage to goods. The seller must pay the premium.
CPT – CPT means Carried Paid To and is followed by a named place of destination, for example CPT Paris City. CPT means that the seller must pay the freight for the carriage of the goods to the named destination. The risk of loss or damage to the goods and any cost increases transfers from the seller to the buyer when the goods have been delivered to the custody of the first carrier, and not at the ship’s rail.
CIP – CIP means Carriage And Insurance Paid To and is followed by a named place of destination, for example CIP Amman. CIP has the same incoterm meaning as CPT, but in addition the seller pays for the insurance against loss of damage.

Arrival (Group D)
DAT – Delivered at Terminal means that the seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination, for example DDP Beirut port. “Terminal” includes a place, whether covered or not, such as a quay, warehouse, container yard or road, rail or air cargo terminal. The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination.
DAP – Delivered at Place means that the seller delivers the goods on the arriving means of transport ready for unloading at the named place of destination. The seller bears all risks involved in bringing the goods to the named place, for example DAP Achrafieh. However import customs clearance and  taxes remain for buyers account and arrangement.
DDP – means Delivered Duty Paid and is followed by a named place of destination, for example DDP Mkalles. The seller has to pay the costs involved in shipping the goods as well as the costs and risks of carrying out customs formalities. The seller pays the duty and the buyer has to pay any additional costs caused by its failure to clear the goods for import in time. DDP should not be used if the seller is unable to obtain an import license.

 
Shipping Terms

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