FCA Cargo Delivery Carrier

It means that the seller only needs to deliver the goods to the carrier designated by the buyer at the designated place and complete the export customs clearance procedures to complete the delivery. It should be noted that the choice of delivery location will have an impact on the obligations of loading and unloading at that location.

If the seller delivers the goods at his location, the seller shall be responsible for loading the goods, and if the seller delivers the goods at any other place, the seller is not responsible for unloading the goods.

EXW ex works

It means that when the seller delivers the goods to the buyer at its location or other designated locations (such as a workshop, factory or warehouse), the delivery is completed, and the seller does not go through the export customs clearance procedures or load the goods on any means of transportation.

FOB free on board

When the goods cross the ship's rail at the designated port of shipment, the seller completes the delivery. This means that the buyer must bear all risks of loss or damage to the goods from that point on. The FOB term requires the seller to go through customs clearance procedures for the export of goods.

CFR cost and freight

It means that the seller completes the delivery when the goods pass the ship's rail at the port of shipment, and the seller must pay the freight and expenses required to transport the goods to the designated port of destination. However, the risk of loss or damage to the goods after delivery, as well as any additional costs caused by various events, is transferred from the seller to the buyer.

CIF cost plus insurance, freight

It means that the seller completes the delivery when the goods pass the ship’s rail at the port of shipment. The seller must pay the freight and expenses required to transport the goods to the designated port of destination, but the risk of loss or damage to the goods after delivery and any additional costs caused by various events are transferred from the seller to the buyer.

However, under CIF conditions, the seller must also apply for marine insurance against the risk of loss or damage to the buyer’s goods during transportation.