Terms of Shipment

Terms of Shipment

Ex-works (EXW) - at the point of origin

– The exporter agrees to deliver the goods at the disposal of the buyer to the specified place on the
specified date or within a fixed period. All other charges are borne by the buyer.

• Free Alongside Ship (FAS) - at a named port of export

– The exporter quotes a price for the goods, including charges for delivery of the goods alongside a
vessel at a port. The seller covers the costs of unloading and wharfage. Loading onto the ship, ocean
transportation, insurance, unloading and wharfage at a port of destination and transport to the site
required by the buyer are on the importer’s account.

• Free on Board (FOB) - at a named port of export

– In addition to FAS, the exporter undertakes to load the goods on the vessel to be used for ocean
transportation and the price quoted by the exporter reflects this cost.

• Cost and Freight (CFR) - to a named overseas port of disembarkation

– The exporter quotes a price for the goods, including the cost of transportation to a named overseas
port of disembarkation. The cost of insurance and the choice of the insurer are left to the importer.

• Cost, Insurance and Freight (CIF) - to a named overseas port of disembarkation

– The exporter quotes a price including insurance and all transportation and miscellaneous charges to the
port of disembarkation from the ship or aircraft. CIF costs are influenced by port charges (unloading,
wharfage, storage, heavy lift, and demurrage), documentation charges (certification of invoice,
certification of origin, weight certificate) and other miscellaneous charges (fees of freight forwarder,
insurance premiums).

• Delivery Duty Paid (DDP) - to an overseas buyer’s premises

– The exporter delivers the goods with import duties paid including inland transportation from the docks
to the importer’s premises