VIE
ENG
EXW | Ex Works
If the seller wants to export but cannot afford to do anything related to the shipment such as customs clearance, transportation, insurance ... due to lack of export experience, it is recommended to apply to sign a contract under EXW conditions. With this condition, the seller only needs to place an order at his factory, the buyer will pay for the goods (Invoice value) and let the person come to bring the goods.
EXW means that the seller delivers goods to the buyer when the goods are placed at buyer's disposal at a designated location (factory or warehouse), and the designated location may or may not be the seller's premises.
For delivery, sellers do not need to load and unload goods onto vehicles, nor do they need to go through export customs clearance.
Delivery occurs – the risk of being transferred – when the goods are placed at the disposal of the buyer (not yet loaded onto the vehicle).
EXW is an Incoterms condition that stipulates the seller's minimum liability.
EXW is used with all modes of transportation.
FCA | Free Carrier
If the seller is able to clear export customs, for convenience, the seller should accept this (bear the cost incurred by export tax) and offer to sign the contract under FCA conditions. The seller usually estimates the amount of export tax payable in advance and charges it in the buyer's receivables. FCA requires sellers to go through export customs clearance.
Delivery locations are delimited in 02 following ways:
When the designated location is the seller's premises, the goods are delivered when they are loaded onto a transport vehicle arranged by the buyer.
When the designated location is somewhere else, the goods are delivered upon completion of loading and unloading onto the seller's transport vehicle and to another designated location and ready for unloading from the seller's transport vehicle and placed at the disposal of the carrier or another person designated by the buyer.
FCA is used with all modes of transportation.
CPT | Carriage Paid To
If the buyer wants to receive the goods as a condition of FCA but is unable to carry out the transport, it can negotiate to sign a contract under the conditions of CPT. The seller usually anticipates the transportation costs incurred in advance and charges the goods receivable by the buyer.
CPT means that the seller delivers the goods to the buyer – and transfers the risk of the goods to the buyer when:
The goods are delivered to a carrier hired by the seller or
The seller purchases such a delivered batch for delivery to the buyer.
As soon as the goods are delivered to such a buyer, the seller does not guarantee that the goods will arrive at their destination in good and complete condition. The risk is transferred from the seller to the buyer when the goods are delivered to the buyer by delivery to the carrier.
The seller must sign a transport contract to bring the goods from the delivery point to the agreed destination.
CPT is used with all modes of transportation.
CIP | Carriage & Insurance Paid to
If the buyer wants to receive the goods as a condition of CPT but also needs to add insurance for the shipment, sign a contract with CIP conditions. The seller purchases insurance and bears the cost of the insurance, but the buyer bears the risk of loss or damage of the shipment during transportation.
CIP means that the seller delivers the goods to the buyer – and transfers the risk of the goods to the buyer when:
The goods are delivered to a carrier hired by the seller or
The seller purchases such a delivered batch for delivery to the buyer.
As soon as the goods are delivered to such a buyer, the seller does not guarantee that the goods will arrive at their destination in good and complete condition. The risk is transferred from the seller to the buyer when the goods are delivered to the buyer by delivery to the carrier.
The seller must sign a transport contract to take the goods from the point of delivery to the agreed destination.
The seller must purchase insurance for the goods (insurance from the point of delivery to at least the destination).
CIP is used with all modes of transportation.
FAS | Free Alongside Ship
If the seller has the additional ability to take the goods to the pier at the port of export, the seller should do this (at its own costs and risks incurred, including these costs in advance) and sign the contract according to FAS conditions. The FAS requires the seller to go through export customs clearance. The FAS means that the seller delivers the goods to the buyer when:
The cargo is placed along the side of the vessel designated by the buyer at the designated port of loading or
The seller purchases such a delivered batch for delivery to the buyer.
The risk of loss or damage of the shipment is transferred when the cargo is placed along the side of the ship, and the buyer bears all costs from that point on.
FAS is used with sea transport.
FOB | Free On Board
If the seller has the additional ability to safely deck the goods at the port of export, the seller should do this (at its own expense and risk, pre-accounting this cost into the cost of the goods) and sign a contract under FOB conditions. FOB requires sellers to go through export customs clearance. FOB means that the seller delivers the order to the buyer when:
The cargo is placed on the deck designated by the buyer at the designated port of loading or
The seller purchases such a delivered batch for delivery to the buyer.
The risk of loss or damage of the shipment is transferred when the goods are placed on deck, and the buyer bears all costs from that point on.
FOB is used with sea transport.
CFR | Cost and Freight
If the seller has additional ability to charter the vessel, the seller should do this (bear the costs incurred to charter the vessel to bring the goods to the port of import, calculate this cost in advance in the cost of the goods – do not bear the risks incurred) and sign a contract under CFR conditions, the seller is not responsible for buying insurance for the goods so the buyer purchases insurance himself. CFR means that a seller delivers an order to a buyer when:
Cargo is placed on the deck or
The seller purchases such a delivered batch for delivery to the buyer.
The risk of loss or damage of the transferred shipment when the goods are placed on deck, at which point the seller fulfills the obligation to deliver the goods regardless of whether the goods arrive at the port of unloading in good and complete condition.
The seller must sign a contract for the transportation of goods from the place of delivery to the designated port of destination.
CFR is used with sea transport.
CIF | Cost, Insurance & Freight
If the seller has the additional ability to ensure the shipment when the goods are transported on ships, the seller should do this (at its own expense to purchase insurance, pre-charging this cost in the cost of the goods) and sign a contract according to CIF conditions. With CIF, the seller is responsible for purchasing insurance for the goods. CIF means that the seller delivers the goods to the buyer when:
Cargo is placed on the deck or
The seller purchases such a delivered batch for delivery to the buyer.
The risk of loss or damage of the transferred shipment when the goods are placed on deck, at which point the seller fulfills the obligation to deliver the goods regardless of whether the goods arrive at the port of unloading in good and complete condition.
The seller must sign a contract for the transportation of goods from the place of delivery to the designated port of destination.
CIF is used with sea transport.
DAP | Delivered at Place
If the buyer does not have the ability or experience to bring the goods to their import country, the seller can do this additional work (pre-calculate this cost in the cost of the goods) and sign a contract according to DAP conditions. With DAP it means that the seller delivers the goods to the buyer – and transfers the risk of the goods to the buyer when the goods are placed at the buyer's disposal on an incoming transport vehicle and ready for unloading at the designated destination location.
The seller assumes all risk to deliver the goods to the specified destination. The risk of loss or damage of the shipment is transferred to the buyer at the point of delivery.
All costs incurred before the point of delivery are borne by the seller and all costs after the point of delivery are borne by the buyer.
The seller must sign a transport contract to deliver the goods to the designated location.
DAP is used with all modes of transport.
DPU | Delivery at Place Unloaded
If the buyer does not have the ability or experience to bring the goods to the import warehouse and also does not have the ability or experience to unload the goods from the incoming transport, the seller can do this additional work (pre-accounting this cost in the cost of the goods) and sign a contract according to DPU conditions. With DPU it means that the seller delivers the goods to the buyer – and transfers the risk of the goods to the buyer as soon as the goods are unloaded from the incoming transport vehicle and placed at the buyer's disposal at the designated destination.
The seller assumes all risks of loss or damage of the goods in order to take them to their designated destination and unload. DPU is the only Incoterms condition that requires the seller to unload at the destination (the seller bears the cost and risk of unloading).
All costs incurred before the point of delivery are borne by the seller and all costs after the point of delivery are borne by the buyer.
The seller must sign a transport contract to deliver the goods to the designated location.
DPU is used with all modes of transport.
DDP | Delivered Duty Paid
If the buyer does not have the ability or experience to carry out import customs clearance for the shipment, the seller can do this additional work (calculate the amount of import tax in advance... must pay this into the goods) and sign the contract under DDP conditions. DDP means that the seller delivers the goods to the buyer when the goods have completed import customs clearance are placed at the buyer's disposal on the incoming transport vehicle and ready for unloading at the designated destination.
The seller assumes all risks of loss or damage of the goods in order to deliver them to the designated destination.
All costs incurred before the point of delivery shall be borne by the seller (including costs of import customs clearance) and all costs after the point of delivery shall be borne by the buyer.
The seller must sign a transport contract to deliver the goods to the designated location.
DDP is used with all modes of transport.
