8.9 International contracts of sale: FAS, FOB, CIF, FCA, CPT, CIP, DAT, DAP, DDP, CFR, DAF, DDU, Ex – works and Ex – ship

FAS (Free Alongside Ship)

– The seller delivers the goods alongside the ship at the named port of shipment.

– The buyer is responsible for all costs and risks from that point forward, including loading onto the vessel.

FOB (Free On Board)

– The seller is responsible for delivering the goods on board the vessel at the named port of shipment.

– The risk of loss or damage passes to the buyer once the goods are on board.

CIF (Cost, Insurance, and Freight)

– The seller is responsible for delivering the goods on board the vessel at the named port of shipment. – The seller also arranges and pays for marine insurance and freight charges to the named destination port.

– Risk of loss or damage passes to the buyer once the goods are on board, but the seller bears the cost of insurance.

FCA (Free Carrier)

– The seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the seller’s location or another named place.

– The buyer assumes risk and responsibility once the goods are delivered to the carrier.

CPT (Carriage Paid To)

– The seller delivers the goods to the carrier or another person nominated by the seller at an agreed-upon place.

– The seller is responsible for the cost of carriage to the named destination, but risk transfers to the buyer upon delivery to the carrier.

CIP (Carriage and Insurance Paid To)

– Similar to CPT, the seller delivers the goods to the carrier or another nominated person at an agreed-upon place.

– The seller is responsible for the cost of carriage to the named destination and also arranges and pays for insurance.

– Risk transfers to the buyer upon delivery to the carrier.

DAT (Delivered At Terminal)

– The seller delivers the goods, cleared for import, to a named terminal at the destination or another agreed place.

– The seller assumes all costs and risks until delivery at the terminal, at which point risk transfers to the buyer.

DAP (Delivered At Place)

– The seller delivers the goods, cleared for import, to the buyer at an agreed-upon place.

– The seller bears all risks and costs up to the point of delivery to the buyer.

DDP (Delivered Duty Paid)

– The seller is responsible for delivering the goods to the buyer, cleared for import, at an agreed-upon destination.

– The seller assumes all risks and costs, including customs duties and taxes, up to the point of delivery.

CFR (Cost and Freight)

– The seller is responsible for delivering the goods on board the vessel at the named port of shipment and pays for freight costs to the named destination port.

– Risk of loss or damage passes to the buyer once the goods are on board.

DAF (Delivered At Frontier)

– The seller delivers the goods, cleared for export, to the frontier or another named place at the border.

– The buyer assumes risk and responsibility once the goods are delivered at the named place.

DDU (Delivered Duty Unpaid)

– The seller is responsible for delivering the goods to the buyer at the named destination.

– The seller bears all risks and costs up to the point of delivery, except for customs duties and taxes, which are the buyer’s responsibility.

EXW (Ex-Works)

– The seller makes the goods available at their premises or another named place.

– The buyer is responsible for all costs and risks, including loading, transportation, and import duties.

EX-SHIP

– The seller delivers the goods when they are placed at the buyer’s disposal on board the ship, not cleared for import.

– The buyer assumes risk and responsibility upon delivery.