Since we know that Shipping glossaries causes a lot of confusion to our clients, we decided to list it below with a brief detail of what it stands for.
EXW establishes the seller’s minimum commitment. The seller delivers the goods at the named place (factory, workshop, warehouse, etc.). The buyer pays all the costs and assumes the risks inherent to receiving the merchandise (including transportation, insurance and other expenses).
The seller delivers the dispatched goods for export at the named place. At this point, he transfers to the buyer all the risks for loss or damage. If the goods are delivered at the seller’s facilities, he will be responsible for loading. If the delivery takes place elsewhere, the seller is not responsible for loading the goods. It should be mentioned that the site chosen for delivery determines the loading and unloading obligations of the parties. This is valid for any mode of transportation.
The seller delivers the goods and the invoice at the named port alongside the ship. The FAS term requires the seller to clear the goods through customs before exporting it. However, if the parties wish the seller to dispatch the goods for export, they must clearly say so in the sale and purchase contract. This term is used exclusively for sea and continental navigation transportation.
The goods must be delivered by the seller on board the ship designated by the buyer, at the agreed date or within the agreed deadlines, at the named shipping port and in the usual way at that port, as stipulated in the contract. The buyer must bear all the costs and risks of damage or loss after delivery at the point of delivery (port of origin). The seller pays the shipping costs and bears the risk for the loss or damage of goods until such time as the goods have been placed on board at the named port of shipping.
The seller pays the shipping and freight costs to the named port of destination. The seller must bear the risks for the loss or damage of goods until they are on board the ship at the port of shipping. The seller, other than freight, must pay all the expenses and costs resulting from loading and unloading the goods and provide all the paperwork needed for exporting.
The seller delivers the merchandise on board the ship at the port of shipping. The seller bears all the risks and damages until such time as the goods have been placed on board at the port of shipping. The seller must buy, at his own expense, a freight insurance policy as agreed in the contract to empower the buyer or any other person who holds an insurable interest over the goods, to file directly a claim with the insurer, and hand over to the insurer the insurance policy or any other proof of insurance coverage.
The seller delivers the merchandise when effectively giving it to the carrier designated by him. He must also pay all the transportation costs to take the goods to the named destination. The buyer bears all the risks and any other costs incurred after the goods are delivered. The seller must bear all the risks or damages suffered by the goods until they are delivered.
The seller delivers the goods when he makes it available to the carrier designated by him, but must bear all the transportation costs to the named point of destination. The buyer bears all the risks and any other such cost as may be incurred after the goods have been so delivered. Nonetheless, the CIP term also requires hiring insurance against all risks borne by the buyer to cover for the loss or damage that the goods may suffer during the carriage.
Delivery is affected when the goods are made available to the buyer on board the ship, but not yet dispatched through customs for importation at the named port of destination. The seller must bear the full cost and risk of carrying the goods to the named port of destination before unloading at the named port of destination. If the parties wish the seller to bear the cost and risk of unloading the goods, the DEQ term must be used (below). The seller hands over the risk for damage or loss when the goods are delivered. The seller must deliver the goods on board at the named port of destination. The costs and risks of delivering the merchandise at the port of destination are borne by the seller. The cost of unloading and customs clearance is borne by the buyer.
The seller delivers the goods when they are made available to the buyer on the quay (landing dock at the named port of destination). The cost and risk of delivering the goods, including unloading, are borne by the seller. DEQ can be of one of two types. DEQ duty paid, and DEQ duty paid by the seller. In the first type taxes are paid by the seller, while in the second the duties paid by the seller are reimbursed by the buyer. This term may only be used when – after having been carried by sea – the goods have to be transported along continental waterways or using multi-mode means of transportation and unloading takes place at the quay of the named port of destination.
The seller delivers the goods when they are made available to the buyer on board the means of transportation – but not yet unloaded – at the named point and place along the frontier before reaching the border customs office of the neighboring country. The goods should have been customs-cleared for export but not for import. The term ‘frontier’ may be used for any frontier, including that of the exporting country. Therefore, it is of the utmost importance that the term frontier be qualified to determine exactly which frontier is meant. This is done by including the named point and place immediately after the DAF term. The seller bears all the risks for loss of or damage to the goods until the goods have been effectively delivered.
The seller delivers the goods not cleared through customs before unloading from the means of transport at the named port of destination. The seller must bear all the cost and risk incurred in carrying the goods to the named place of destination and – when so required – all duties needed for importation into the country of destination (including the obligation and risk of customs paperwork, and payment of paperwork, customs duties, taxes and other charges). This ’obligation’ shall be borne by the buyer, together with all other costs and risks, if the goods are not dispatched in time for importation. However, if the parties have desired the seller to clear the goods through customs and to bear the eventual cost and risk, as well as other costs required by the importation of the goods, that wish must be clearly established by including explicit mention to them in the sale and purchase contract.
The seller delivers the goods to the buyer after they are dispatched for importation but not yet unloaded from the means of transport used for carriage to the named destination. The seller shall bear all the risk and cost until the goods are delivered on the means of transportation at the named destination. The seller must bear the cost of all the paperwork, customs duties, taxes and other charges required for importation into the destination country.