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.