|Ex Works (EXW)
|Minimum responsibility;goods made available at factory or seller’s premises (cost usually includes crating for export)
|Maximum responsibility; buyer; responsible for all costs and risks from seller’s premises
|Free on Board (FOB)
|All costs and risks including export clearances to a named port until the goods pass the ship’s rail (loading onto ship)
|Costs and risks transfer to the buyer when goods pass the ship’s rail
|Free Alongside Ship (FAS)
|Costs and risks to a named port alongside the ship (costs such as loading at factory, inland transportation, insurance, unloading at dock AND export clearances)
|Costs and risks of loading on ship plus all additional costs to buyer’s location
|Cost and Freight (CFR)
|Costs to port of destination (freight and other charges, export documentation and freight forwarder’s fees). Note insurance risk ends at port of shipment, ships rail.
|Risks assumed pass the ship’s rail at the exporter’s port of shipment. Must have marine insurance and must cover all costs after goods pass ship’s rail at port of destination
|Cost, Insurance and Freight (CIF)
|All export documentation and transportation costs and marine insurance against buyer’s risk of loss to port of destination.
|Likely require additional marine insurance to supplement coverage provided by seller. All costs and risk after ship arrives at port of destination
|Delivered Duty Paid (DDP)
|Maximum responsibility for seller; all costs and risks to a specific destination in the importing country (includes costs such as unloading fees, storage, import licence, fees, duties and taxes, custom broker’s fees, ground transport, loading and unloading fees, insurance, etc.)
|Minimum responsibility and risk to buyer; all costs and risks covered by seller until buyer actually receives the goods. Exporter has to handle any customs clearance problems.