| INCOTERMS™ | SELLER´S RESPONSIBILITIES | BUYER´S RESPONSIBILITIES |
|---|---|---|
| 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. |