Shipping - Cost, Payment Terms and Conditions (TERMS)

Comprehensive guide to shipping methods, costs, and payment terms including FOB, CFR, CIF, and other Incoterms with their definitions and seller responsibilities.

AbbreviationMethodDescriptionSeller Responsibility
CFRCost and FreightCost and FreightSeller pays the costs necessary to bring the goods to named port of destination
CIFCost, Insurance and FreightCost, Insurance and FreightSame as CFR but in addition the seller includes marine insurance loss or damage to goods during shipment
CIPCarriage and Insurance Paid ToCarriage and Insurance Paid ToSame as CPT, but in addition the seller includes insurance loss of or damage to the goods during carriage
CPTCarriage Paid ToCarriage Paid ToSeller pays freight to named destination
DAFDelivered At FrontierDelivered At FrontierSeller clears the goods for export at named destination - but before the customs
DDPDelivered Duty PaidDelivered Duty PaidSeller deliver the goods at named destination - pays charges of delivering the goods to be cleared at custom
DDUDelivered Duty UnpaidDelivered Duty UnpaidSeller deliver the goods at named destination
DESDelivered Ex ShipDelivered Ex ShipSeller deliver the goods on board the ship, uncleared for import at named destination - seller pays to bring the goods to named destination
DEQDelivered Ex Quay (Duty Paid)Delivered Ex Quay (Duty Paid)Seller deliver the goods at named destination - cleared for importation
EXWEx WorksEx WorksSeller makes the goods available at his premises
FASFree Alongside ShipFree Alongside ShipSeller sends the goods to alongside the vessel - or in the named port of shipment
FCAFree CarrierFree CarrierSeller hands over the goods cleared for export to the charge of the carrier named by the buyer at named place
FOBFree On BoardFree On BoardSeller clears the goods for export at named port of shipment