TERMS FOR DIFFERENT MODES OF TRANSPORT

• EXW stands for EX WORKS (… named place of delivery)
• FCA stands for FREE CARRIER (… designated place of delivery)
• CPT stands for CARRIAGE PAID TO (… designated place of destination)
• CIP stands for CARRIAGE AND INSURANCE PAID TO (… designated place of destination)
• DAT stands for DISTRIBUTED AT THE TERMINAL (… terminal at port or place of destination)
• DAP stands for DELIVERED ON THE SPOT (… named place of destination)
• DDP stands for DELIVERED DUTY PAID (… designated place)
• MARITIME-ONLY TERMS
• FAS stands for FREE ALONGSIDE SHIP (… named port of shipment)
• FOB stands for FREE ON BOARD (… designated port of shipment)
• CFR stands for COST AND FREIGHT (… named port of destination)
• CIF stands for COST INSURANCE AND FREIGHT (… named port of destination)

EXW or EX-WORKS: The Seller’s sole obligation is to make the goods available at the Seller’s premises. Here the Buyer bears all the costs and risks associated with transporting the goods from the origin to the destination.

FCA or FREE CARRIER: The Seller delivers the cleared-for-export goods to the carrier chosen by the Buyer. If the carrier pick-up is at the Seller’s location, the Seller loads the goods. The Buyer is responsible for the costs and risks associated with transporting the goods to their destination from that point forward.

CPT or CARRIAGE PAID TO: It’s the Seller’s responsibility to transport the goods to their final destination. The Buyer is responsible for the risk of loss or damage when the goods or packages are transferred to the first carrier.

CIP or CARRIAGE AND INSURANCE PAID TO: It’s the Seller’s responsibility to transport the goods to their final destination. The Buyer is responsible for the risk of loss or damage when the goods are transferred to the first carrier. The cargo insurance, on the other hand, is purchased by the Seller.

DAT or DISTRIBUTED AT THE TERMINAL: It’s the Seller’s responsibility to deliver the goods once they are placed at the Buyer’s disposal at a named terminal, at the named port, or place of destination after being unloaded from the arriving means of transport.

The term “terminal” refers to any location, covered or not, such as a quay, container yard, warehouse, or road, rail, or air cargo terminal.

The Seller assumes all risks associated with transporting the goods to and unloading them at the terminal at the named port or location.

DAP or DELIVERED AT PLACE: DAP here implies that the Seller has delivered the goods at the Buyer’s disposal on the arriving means of transport, ready for unloading at the named place of destination. The Seller is responsible for all the risks associated with delivering the goods to the specified location.

DDP or DELIVERED DUTY PAID: The Seller delivers the goods that have been cleared for import to the Buyer at the destination. It’s the Seller’s responsibility to bear for all costs and risks associated with transporting the goods to their destination, including the payment of Customs duties and taxes.

FAS or FREE ALONGSIDE SHIP: The goods are delivered to the origin port by the Seller. From that point forward, the Buyer is responsible for all costs and risks of loss or damage.

FOB or FREE ON BOARD: It’s the Seller’s responsibility to load the goods onto the ship and clear them for export. After that, it’s the Buyer’s responsibility to bear all the costs and risks of loss or damage.

CFR or COST AND FREIGHT: It’s the Seller’s responsibility to clear the goods to pay for the costs of transportation to the destination. All risks of loss or damage are borne by the Buyer.

CIF or COST INSURANCE AND FREIGHT: It’s the Seller’s responsibility to clear the goods for export and pay for transportation to the destination port. All risks of loss or damage are borne by the Buyer. The cargo insurance, on the other hand, is purchased by the Seller.

Note: The Seller here is referred to as Midways International Trade as we are providing the shipping and postal services. While the term Buyer is used for you (the clients), who will opt for our services to deliver their goods or packages.