INCOTERMS Flashcards
What does EXW (Ex Works) mean?
The seller makes goods available at their premises, and the buyer is responsible for all transportation, risk, and costs.
What does FCA (Free Carrier) mean?
The seller delivers the goods to a carrier or location specified by the buyer, and risk transfers to the buyer once delivery is complete.
What does FAS (Free Alongside Ship) mean?
The seller delivers the goods alongside the ship at the port of departure, and the buyer takes responsibility and risk from that point.
What does FOB (Free on Board) mean?
The seller delivers the goods on board the ship at the port of departure, and risk transfers to the buyer once the goods are on the vessel.
What does CFR (Cost and Freight) mean?
The seller pays for transportation to the port of destination but does not cover insurance. Risk transfers to the buyer once the goods are loaded onto the ship.
What does CIF (Cost, Insurance, and Freight) mean?
The seller pays for transportation and insurance to the port of destination. Risk transfers to the buyer once the goods are loaded onto the ship.
What does CPT (Carriage Paid To) mean?
The seller pays for transportation to a named destination, but risk transfers to the buyer once the goods are handed over to the carrier.
What does CIP (Carriage and Insurance Paid To) mean?
The seller pays for transportation and insurance to a named destination. Risk transfers to the buyer once the goods are handed over to the carrier.
What does DAP (Delivered at Place) mean?
The seller delivers the goods to a specified place, and the buyer assumes risk and responsibility upon arrival at the destination.
What does DPU (Delivered at Place Unloaded) mean?
The seller delivers the goods to a named place and unloads them. Risk transfers to the buyer once unloading is complete.
What does DDP (Delivered Duty Paid) mean?
The seller is responsible for delivering goods to a specified location, including payment of all customs duties and taxes. Risk transfers to the buyer upon delivery.
