FAS | Free Alongside Ship

FAS (insert named port of shipment) Incoterms® 2020

EXPLANATORY NOTES FOR USERS

1. Delivery and risk—“Free Alongside Ship” means that the seller delivers the goods to the buyer

  • when the goods are placed alongside the ship (e.g. on a quay or a barge)
  • nominated by the buyer
  • at the named port of shipment
  • `or when the seller procures goods already so delivered.

The risk of loss of or damage to the goods transfers when the goods are alongside the ship, and the buyer bears all costs from that moment onwards.

2. Mode of transport—This rule is to be used only for sea or inland waterway transport where the parties intend to deliver the goods by placing the goods alongside a vessel. Thus, the FAS rule is not appropriate where goods are handed over to the carrier before they are alongside the vessel, for example where

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goods are handed over to a carrier at a container terminal. Where this is the case, parties should consider using the FCA rule rather than the FAS rule.

3. Identifying the loading point precisely—The parties are well advised to specify as clearly as possible the loading point at the named port of shipment where the goods are to be transferred from the quay or barge to the ship, as the costs and risks to that point are for the account of the seller and these costs and associated handling charges may vary according to the practice of the port.

4. ‘or procuring the goods so delivered’—The seller is required either to deliver the goods alongside the ship or to procure goods already so delivered for shipment. The reference to “procure” here caters for multiple sales down a chain (string sales), particularly common in the commodity trades.

5. Export/import clearance—FAS requires the seller to clear the goods for export, where applicable. However, the seller has no obligation to clear the goods for import or for transit through third countries, to pay any import duty or to carry out any import customs formalities.

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A THE SELLER’S OBLIGATIONS

A1 General obligations

The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract.

Any document to be provided by the seller may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

A2 Delivery

The seller must deliver the goods either by placing them alongside the vessel nominated by the buyer at the loading point, if any, indicated by the buyer at the named port of shipment or by procuring the goods so delivered.

The seller must deliver the goods

  1. on the agreed date or
  2. at the time within the agreed period notified by the buyer under B10 or,
  3. if no such time is notified, then at the end of the agreed period and
  4. in the manner customary at the port.
    If no specific loading point has been indicated by the buyer, the seller may select the point within the named port of shipment that best suits its purpose.

A3 Transfer of risks

The seller bears all risks of loss of or damage to the goods until they have been delivered in accordance with A2, with the exception of loss or damage in the circumstances described in B3.

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B THE BUYER’S OBLIGATIONS

B1 General obligations

The buyer must pay the price of the goods as provided in the contract of sale.

Any document to be provided by the buyer may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

B2 Taking delivery

The buyer must take delivery of the goods when they have been delivered under A2.

B3 Transfer of risks

The buyer bears all risks of loss of or damage to the goods from the time they have been delivered under A2.

If:

  1. the buyer fails to give notice in accordance with B10; or
  2. the vessel nominated by the buyer fails to arrive on time to enable the seller to comply with A2, fails to take the goods, or closes for cargo earlier than the time notified in accordance with B10;

then the buyer bears all risks of loss of or damage to the goods:

  1. from the agreed date, or in the absence of an agreed date,
  2. from the date selected by the buyer under B10, or, if no such date has been notified,
  3. from the end of any agreed period for delivery,

provided that the goods have been clearly identified as the contract goods.

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A THE SELLER’S OBLIGATIONS

A4 Carriage

The seller has no obligation to the buyer to make a contract of carriage. However, the seller must provide the buyer, at the buyer’s request, risk and cost, with any information in the possession of the seller, including transport-related security requirements, that the buyer needs for arranging carriage. If agreed, the seller must contract for carriage on the usual terms at the buyer’s risk and cost.

The seller must comply with any transport-related security requirements up to delivery.

A5 Insurance

The seller has no obligation to the buyer to make a contract of insurance. However, the seller must provide the buyer, at the buyer’s request, risk and cost, with information in possession of the seller that the buyer needs for obtaining insurance.

A6 Delivery/transport document

The seller must provide the buyer, at the seller’s cost, with the usual proof that the goods have been delivered in accordance with A2.

Unless such proof is a transport document, the seller must provide assistance to the buyer, at the buyer’s request, risk and cost, in obtaining a transport document.

A7 Export/import clearance

a) Export clearance

Where applicable, the seller must carry out and pay for all export clearance formalities required by the country of export, such as:

  • export licence;
  • security clearance for export;
  • pre-shipment inspection; and
  • any other official authorisation.

b) Assistance with import clearance

Where applicable, the seller must assist the buyer, at the buyer’s request, risk and cost, in obtaining any documents and/or information related to all transit/import clearance formalities, including security requirements and pre-shipment inspection, needed by any country of transit or the country of import.

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B THE BUYER’S OBLIGATIONS

B4 Carriage

The buyer must contract at its own cost for the carriage of the goods from the named port of shipment, except when the contract of carriage is made by the seller as provided for in A4.

B5 Insurance

The buyer has no obligation to the seller to make a contract of insurance.

B6 Delivery/transport document

The buyer must accept the proof of delivery provided under A6.

B7 Export/import clearance

a) Assistance with export clearance

Where applicable, the buyer must assist the seller at the seller’s request, risk and cost in obtaining any documents and/or information related to all export clearance formalities, including security requirements and pre-shipment inspection, needed by the country of export.

b) Import clearance

Where applicable, the buyer must carry out and pay for all formalities required by any country of transit and the country of import, such as:

  • import licence and any licence required for transit;
  • security clearance for import and any transit;
  • pre-shipment inspection; and
  • any other official authorisation.

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A THE SELLER’S OBLIGATIONS

A8 Checking/packaging/marking

The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) that are necessary for the purpose of delivering the goods in accordance with A2.

The seller must, at its own cost, package the goods, unless it is usual for the particular trade to transport the type of goods sold unpackaged. The seller must package and mark the goods in the manner appropriate for their transport, unless the parties have agreed on specific packaging or marking requirements.

A9 Allocation of costs

The seller must pay:

  1. all costs relating to the goods until they have been delivered in accordance with A2, other than those payable by the buyer under B9;
  2. the costs of providing the usual proof to the buyer under A6 that the goods have been delivered;
  3. where applicable, duties, taxes and any other costs related to export clearance under A7(a); and
  4. the buyer for all costs and charges related to providing assistance in obtaining documents and information in accordance with B7(a).

A10 Notices

The seller must give the buyer sufficient notice either that the goods have been delivered in accordance with A2 or that the vessel has failed to take delivery of the goods within the time agreed.

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B THE BUYER’S OBLIGATIONS

B8 Checking/packaging/marking

The buyer has no obligation to the seller.

B9 Allocation of costs

The buyer must pay:

  1. all costs relating to the goods from the time they have been delivered under A2, other than those payable by the seller under A9;
  2. the seller for all costs and charges related to providing assistance in obtaining documents and information in accordance with A4, A5, A6 and A7(b);
  3. where applicable, duties, taxes and any other costs related to transit or import clearance under B7(b); and
  4. any additional costs incurred, either because:
    1. the buyer has failed to give notice under B10, or
    2. the vessel nominated by the buyer under B10 fails to arrive on time, fails to take the goods, or closes for cargo earlier than the time notified in accordance with B10,
    provided that the goods have been clearly identified as the contract goods.

B10 Notices

The buyer must give the seller sufficient notice of any transport-related security requirements, the vessel name, loading point and, if any, the selected delivery date within the agreed period.

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FOB | Free On Board

FOB (insert named port of shipment) Incoterms® 2020

EXPLANATORY NOTES FOR USERS

1. Delivery and risk—“Free on Board” means that the seller delivers the goods to the buyer

  • on board the vessel
  • nominated by the buyer
  • at the named port of shipment
  • or procures the goods already so delivered.

The risk of loss of or damage to the goods transfers when the goods are on board the vessel, and the buyer bears all costs from that moment onwards.

2. Mode of transport—This rule is to be used only for sea or inland waterway transport where the parties intend to deliver the goods by placing the goods on board a vessel. Thus, the FOB rule is not appropriate where goods are handed over to the carrier before they are on board the vessel, for example where goods are handed over to a carrier at a container terminal. Where this is the case, parties should consider using the FCA rule rather than the FOB rule.

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3. or procuring the goods so delivered’—The seller is required either to deliver the goods on board the vessel or to procure goods already so delivered for shipment. The reference to “procure” here caters for multiple sales down a chain (string sales), particularly common in the commodity trades.

4. Export/import clearance—FOB requires the seller to clear the goods for export, where applicable. However, the seller has no obligation to clear the goods for import or for transit through third countries, to pay any import duty or to carry out any import customs formalities.

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A THE SELLER’S OBLIGATIONS

A1 General obligations

The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract.

Any document to be provided by the seller may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

A2 Delivery

The seller must deliver the goods either by placing them on board the vessel nominated by the buyer at the loading point, if any, indicated by the buyer at the named port of shipment or by procuring the goods so delivered.

The seller must deliver the goods

1. on the agreed date at

2. at the time within the agreed period notified by the buyer under B10or ,

3. if no such time is notified, then at the end of the agreed period and

4. in the manner customary at the port.

If no specific loading point has been indicated by the buyer, the seller may select the point within the named port of shipment that best suits its purpose.

A3 Transfer of risks

The seller bears all risks of loss of or damage to the goods until they have been delivered in accordance with A2, with the exception of loss or damage in the circumstances described in B3.

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B THE BUYER’S OBLIGATIONS

B1 General obligations

The buyer must pay the price of the goods as provided in the contract of sale.

Any document to be provided by the buyer may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

B2 Taking delivery

The buyer must take delivery of the goods when they have been delivered under A2.

B3 Transfer of risks

The buyer bears all risks of loss of or damage to the goods from the time they have been delivered under A2.

If:

  1. the buyer fails to give notice in accordance with B10; or
  2. the vessel nominated by the buyer fails to arrive on time to enable the seller to comply with A2, fails to take the goods, or closes for cargo earlier than the time notified in accordance with B10;

then the buyer bears all risks of loss of or damage to the goods:

  1. from the agreed date, or in the absence of an agreed date,
  2. from the date selected by the buyer under B10, or, if no such date has been notified,
  3. from the end of any agreed period for delivery,

provided that the goods have been clearly identified as the contract goods.

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A THE SELLER’S OBLIGATIONS

A4 Carriage

The seller has no obligation to the buyer to make a contract of carriage. However, the seller must provide the buyer, at the buyer’s request, risk and cost, with any information in the possession of the seller, including transport-related security requirements, that the buyer needs for arranging carriage. If agreed, the seller must contract for carriage on the usual terms at the buyer’s risk and cost.

The seller must comply with any transport-related security requirements up to delivery.

A5 Insurance

The seller has no obligation to the buyer to make a contract of insurance. However, the seller must provide the buyer, at the buyer’s request, risk and cost, with information in the possession of the seller that the buyer needs for obtaining insurance.

A6 Delivery/transport document

The seller must provide the buyer, at the seller’s cost, with the usual proof that the goods have been delivered in accordance with A2.

Unless such proof is a transport document, the seller must provide assistance to the buyer, at the buyer’s request, risk and cost, in obtaining a transport document.

A7 Export/import clearance

a) Export clearance

Where applicable, the seller must carry out and pay for all export clearance formalities required by the country of export, such as:

  • export licence;
  • security clearance for export;
  • pre-shipment inspection; and
  • any other official authorisation.

b) Assistance with import clearance

Where applicable, the seller must assist the buyer, at the buyer’s request, risk and cost, in obtaining any documents and/or information related to all transit/import clearance formalities, including security requirements and pre-shipment inspection, needed by any country of transit or the country of import.

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B THE BUYER’S OBLIGATIONS

B4 Carriage

The buyer must contract at its own cost for the carriage of the goods from the named port of shipment, except when the contract of carriage is made by the seller as provided for in A4.

B5 Insurance

The buyer has no obligation to the seller to make a contract of insurance.

B6 Delivery/transport document

The buyer must accept the proof of delivery provided under A6.

B7 Export/import clearance

a) Assistance with export clearance

Where applicable, the buyer must assist the seller at the seller’s request, risk and cost in obtaining any documents and/or information related to all export clearance formalities, including security requirements and pre-shipment inspection, needed by the country of export.

b) Import clearance

Where applicable, the buyer must carry out and pay for all formalities required by any country of transit and the country of import, such as:

  • import licence and any licence required for transit;
  • security clearance for import and any transit;
  • pre-shipment inspection; and
  • any other official authorisation.

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A THE SELLER’S OBLIGATIONS

A8 Checking/packaging/marking

The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) that are necessary for the purpose of delivering the goods in accordance with A2.

The seller must, at its own cost, package the goods, unless it is usual for the particular trade to transport the type of goods sold unpackaged. The seller must package and mark the goods in the manner appropriate for their transport, unless the parties have agreed on specific packaging or marking requirements.

A9 Allocation of costs

The seller must pay:

  1. all costs relating to the goods until they have been delivered in accordance with A2, other than those payable by the buyer under B9;
  2. the costs of providing the usual proof to the buyer under A6 that the goods have been delivered;
  3. where applicable, duties, taxes and any other costs related to export clearance under A7(a); and
  4. the buyer for all costs and charges related to providing assistance in obtaining documents and information in accordance with B7(a).

A10 Notices

The seller must give the buyer sufficient notice either that the goods have been delivered in accordance with A2 or that the vessel has failed to take the goods within the time agreed.

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B THE BUYER’S OBLIGATIONS

B8 Checking/packaging/marking

The buyer has no obligation to the seller.

B9 Allocation of costs

The buyer must pay:

  1. all costs relating to the goods from the time they have been delivered under A2, other than those payable by the seller under A9;
  2. the seller for all costs and charges related to providing assistance in obtaining documents and information in accordance with A4, A5, A6 and A7(b);
  3. where applicable, duties, taxes and any other costs related to transit or import clearance under B7(b); and
  4. any additional costs incurred, either because:
  1. the buyer has failed to give notice under B10, or
  2. the vessel nominated by the buyer under B10 fails to arrive on time, fails to take the goods, or closes for cargo earlier than the time notified in accordance with B10,

provided that the goods have been clearly identified as the contract goods.

B10 Notices

The buyer must give the seller sufficient notice of any transport-related security requirements, the vessel name, loading point and, if any, the selected delivery date within the agreed period.

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CFR | Cost and Freight

CFR (insert named port of destination) Incoterms® 2020

EXPLANATORY NOTES FOR USERS

1. Delivery and risk—“Cost and Freight” means that the seller delivers the goods to the buyer

  • on board the vessel
  • or procures the goods already so delivered.

The risk of loss of or damage to the goods transfers when the goods are on board the vessel, such that the seller is taken to have performed its obligation to deliver the goods whether or not the goods actually arrive at their destination in sound condition, in the stated quantity or, indeed, at all. In CFR, the seller owes no obligation to the buyer to purchase insurance cover: the buyer would be well-advised therefore to purchase some cover for itself.

2. Mode of transport—This rule is to be used only for sea or inland waterway transport. Where more than one mode of transport is to be used, which will commonly be the case where goods are handed over to a carrier at a container terminal, the appropriate rule to use is CPT rather than CFR.

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3. or procuring the goods so delivered’—The reference to “procure” here caters for multiple sales down a chain (string sales), particularly common in the commodity trades.

4. Ports of delivery and destination—In CFR, two ports are important: the port where the goods are delivered on board the vessel and the port agreed as the destination of the goods. Risk transfers from seller to buyer when the goods are delivered to the buyer by placing them on board the vessel at the shipment port or by procuring the goods already so delivered. However, the seller must contract for the carriage of the goods from delivery to the agreed destination. Thus, for example, goods are placed on board a vessel in Shanghai (which is a port) for carriage to Southampton (also a port). Delivery here happens when the goods are on board in Shanghai, with risk transferring to the buyer at that time; and the seller must make a contract of carriage from Shanghai to Southampton.

5. Must the shipment port be named?—While the contract will always specify a destination port, it might not specify the port of shipment, which is where risk transfers to the buyer. If the shipment port is of particular interest to the buyer, as it may be, for example, where the buyer wishes to ascertain that the freight element of the price is reasonable, the parties are well advised to identify it as precisely as possible in the contract.

6. Identifying the destination point at the discharge port—The parties are well advised to identify as precisely as possible the point at the named port of destination, as the costs to that point are for the account of the seller. The seller must make a contract or contracts of carriage that cover(s) the transit of the goods from delivery to the named port or to the agreed point within that port where such a point has been agreed in the contract of sale.

7. Multiple carriers—It is possible that carriage is effected through several carriers for different legs of the sea transport, for example, first by a carrier operating a feeder vessel from Hong Kong to Shanghai, and then onto an ocean vessel from Shanghai to Southampton. The question which arises here is whether risk transfers from seller to buyer at Hong Kong or at Shanghai: where does delivery take place? The parties may well have agreed this in the sale contract itself. Where, however, there is no such agreement, the default position is that risk transfers when the goods have been delivered to the first carrier, i.e. Hong Kong, thus increasing the period during which the buyer incurs the risk of loss or damage. Should the parties wish the risk to transfer at a later stage (here, Shanghai) they need to specify this in their contract of sale.

8. Unloading costs—If the seller incurs costs under its contract of carriage related to unloading at the specified point at the port of destination, the seller is not entitled to recover such costs separately from the buyer unless otherwise agreed between the parties.

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9. Export/import clearance—CFR requires the seller to clear the goods for export, where applicable. However, the seller has no obligation to clear the goods for import or for transit through third countries, to pay any import duty or to carry out any import customs formalities.

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A THE SELLER’S OBLIGATIONS

A1 General obligations

The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract.

Any document to be provided by the seller may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

A2 Delivery

The seller must deliver the goods either by placing them on board the vessel or by procuring the goods so delivered. In either case, the seller must deliver the goods on the agreed date or within the agreed period and in the manner customary at the port.

A3 Transfer of risks

The seller bears all risks of loss of or damage to the goods until they have been delivered in accordance with A2, with the exception of loss or damage in the circumstance described

in B3.

A4 Carriage

The seller must contract or procure a contract for the carriage of the goods from the agreed point of delivery, if any, at the place of delivery to the named port of destination or, if agreed, any point at that port. The contract of carriage must be made on usual terms at the seller’s cost and provide for carriage by the usual route in a vessel of the type normally used for the transport of the type of goods sold.

The seller must comply with any transport-related security requirements for transport to the destination.

A5 Insurance

The seller has no obligation to the buyer to make a contract of insurance. However, the seller must provide the buyer, at the buyer’s request, risk and cost, with information in the possession of the seller that the buyer needs for obtaining insurance.

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B THE BUYER’S OBLIGATIONS

B1 General obligations

The buyer must pay the price of the goods as provided in the contract of sale.

Any document to be provided by the buyer may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

B2 Taking delivery

The buyer must take delivery of the goods when they have been delivered under A2 and receive them from the carrier at the named port of destination.

B3 Transfer of risks

The buyer bears all risks of loss of or damage to the goods from the time they have been delivered under A2.

If the buyer fails to give notice in accordance with B10, then it bears all risks of loss of or damage to the goods from the agreed date or the end of the agreed period for shipment, provided that the goods have been clearly identified as the contract goods.

B4 Carriage

The buyer has no obligation to the seller to make a contract of carriage.

B5 Insurance

The buyer has no obligation to the seller to make a contract of insurance.

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A THE SELLER’S OBLIGATIONS

A6 Delivery/transport document

The seller must, at its own cost, provide the buyer with the usual transport document for the agreed port of destination.

This transport document must cover the contract goods, be dated within the period agreed for shipment, enable the buyer to claim the goods from the carrier at the port of destination and, unless otherwise agreed, enable the buyer to sell the goods in transit by the transfer of the document to a subsequent buyer or by notification to the carrier.

When such a transport document is issued in negotiable form and in several originals, a full set of originals must be presented to the buyer.

A7 Export/import clearance

a) Export clearance

Where applicable, the seller must carry out and pay for all export clearance formalities required by the country of export, such as:

  • export licence;
  • security clearance for export;
  • pre-shipment inspection; and
  • any other official authorisation.

b) Assistance with import clearance

Where applicable, the seller must assist the buyer, at the buyer’s request, risk and cost, in obtaining any documents and/or information related to all transit/import clearance formalities, including security requirements and pre-shipment inspection, needed by any country of transit or the country of import.

A8 Checking/packaging/marking

The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) that are necessary for the purpose of delivering the goods in accordance with A2.

The seller must, at its own cost, package the goods, unless it is usual for the particular trade to transport the type of goods sold unpackaged. The seller must package and mark the goods in the manner appropriate for their transport, unless the parties have agreed on specific packaging or marking requirements.

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B THE BUYER’S OBLIGATIONS

B6 Delivery/transport document

The buyer must accept the transport document provided under A6 if it is in conformity with the contract.

B7 Export/import clearance

a) Assistance with export clearance

Where applicable, the buyer must assist the seller at the seller’s request, risk and cost in obtaining any documents and/or information related to all export clearance formalities, including security requirements and pre-shipment inspection, needed by the country of export.

b) Import clearance

Where applicable, the buyer must carry out and pay for all formalities required by any country of transit and the country of import, such as:

  • import licence and any licence required for transit;
  • security clearance for import and any transit;
  • pre-shipment inspection; and
  • any other official authorisation.

B8 Checking/packaging/marking

The buyer has no obligation to the seller.

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A THE SELLER’S OBLIGATIONS

A9 Allocation of costs

The seller must pay:

a) all costs relating to the goods until they have been delivered in accordance with A2, other than those payable by the buyer under B9;

b) the freight and all other costs resulting from A4, including the costs of loading the goods on board and transport-related security costs;

c) any charges for unloading at the agreed port of discharge that were for the seller’s account under the contract of carriage;

d) the costs of transit that were for the seller’s account under the contract of carriage;

e) the costs of providing the usual proof to the buyer under A6 that the goods have been delivered;

f) where applicable, duties, taxes and any other costs related to export clearance under A7(a); and

g) the buyer for all costs and charges related to providing assistance in obtaining documents and information in accordance with B7(a).

A10 Notices

The seller must notify the buyer that the goods have been delivered in accordance with A2.

The seller must give the buyer any notice required to enable the buyer to receive the goods.

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B THE BUYER’S OBLIGATIONS

B9 Allocation of costs

The buyer must pay:

a) all costs relating to the goods from the time they have been delivered under A2, other than those payable by the seller under A9;

b) the costs of transit, unless such costs were for the seller’s account under the contract of carriage;

c) unloading costs including lighterage and wharfage charges, unless such costs and charges were for the seller’s account under the contract of carriage;

d) the seller for all costs and charges related to providing assistance in obtaining documents and information in accordance with A5 and A7(b);

e) where applicable, duties, taxes and any other costs related to transit or import clearance under B7(b); and

f) any additional costs incurred if it fails to give notice in accordance with B10, from the agreed date or the end of the agreed period for shipment, provided that the goods have been clearly identified as the contract goods.

B10 Notices

The buyer must, whenever it is agreed that the buyer is entitled to determine the time for shipping the goods and/or the point of receiving the goods within the named port of destination, give the seller sufficient notice.

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CIF | Cost Insurance and Freight

CIF (insert named port of destination)

EXPLANATORY NOTES FOR USERS

1. Delivery and risk—“Cost Insurance and Freight” means that the seller delivers the goods to the buyer

  • on board the vessel
  • or procures the goods already so delivered.

The risk of loss of or damage to the goods transfers when the goods are on board the vessel, such that the seller is taken to have performed its obligation to deliver the goods whether or not the goods actually arrive at their destination in sound condition, in the stated quantity or, indeed, at all.

2. Mode of transport—This rule is to be used only for sea or inland waterway transport. Where more than one mode of transport is to be used, which will commonly be the case where goods are handed over to a carrier at a container terminal, the appropriate rule to use is CIP rather than CIF.

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3. or procuring the goods so delivered’—The reference to “procure” here caters for multiple sales down a chain (string sales), particularly common in the commodity trades.

4. Ports of delivery and destination—In CIF, two ports are important: the port where the goods are delivered on board the vessel and the port agreed as the destination of the goods. Risk transfers from seller to buyer when the goods are delivered to the buyer by placing them on board the vessel at the shipment port or by procuring the goods already so delivered. However, the seller must contract for the carriage of the goods from delivery to the agreed destination. Thus, for example, goods are placed on board a vessel in Shanghai (which is a port) for carriage to Southampton (also a port). Delivery here happens when the goods are on board in Shanghai, with risk transferring to the buyer at that time; and the seller must make a contract of carriage from Shanghai to Southampton.

5. Must the shipment port be named?—While the contract will always specify a destination port, it might not specify the port of shipment, which is where risk transfers to the buyer. If the shipment port is of particular interest to the buyer, as it may be, for example, where the buyer wishes to ascertain that the freight or the insurance element of the price is reasonable, the parties are well advised to identify it as precisely as possible in the contract.

6. Identifying the destination point at the discharge port—The parties are well advised to identify as precisely as possible the point at the named port of destination, as the costs to that point are for the account of the seller. The seller must make a contract or contracts of carriage that cover the transit of the goods from delivery to the named port or to the agreed point within that port where such a point has been agreed in the contract of sale.

7. Multiple carriers—It is possible that carriage is effected through several carriers for different legs of the sea transport, for example, first by a carrier operating a feeder vessel from Hong Kong to Shanghai, and then onto an ocean vessel from Shanghai to Southampton. The question which arises here is whether risk transfers from seller to buyer at Hong Kong or at Shanghai: where does delivery take place? The parties may well have agreed this in the sale contract itself. Where, however, there is no such agreement, the default position is that risk transfers when the goods have been delivered to the first carrier, i.e. Hong Kong, thus increasing the period during which the buyer incurs the risk of loss or damage. Should the parties wish the risk to transfer at a later stage (here, Shanghai) they need to specify this in their contract of sale.

8. Insurance—The seller must also contract for insurance cover against the buyer’s risk of loss of or damage to the goods from

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the port of shipment to at least the port of destination. This may cause difficulty where the destination country requires insurance cover to be purchased locally: in this case the parties should consider selling and buying under CFR. The buyer should also note that under the CIF Incoterms® 2020 rule the seller is required to obtain limited insurance cover complying with Institute Cargo Clauses (C) or similar clause, rather than with the more extensive cover under Institute Cargo Clauses (A). It is, however, still open to the parties to agree on a higher level of cover.

9. Unloading costs—If the seller incurs costs under its contract of carriage related to unloading at the specified point at the port of destination, the seller is not entitled to recover such costs separately from the buyer unless otherwise agreed between the parties.

10. Export/import clearance—CIF requires the seller to clear the goods for export, where applicable. However, the seller has no obligation to clear the goods for import or for transit through third countries, to pay any import duty or to carry out any import customs formalities.

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A THE SELLER’S OBLIGATIONS

A1 General obligations

The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract.

Any document to be provided by the seller may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

A2 Delivery

The seller must deliver the goods either by placing them on board the vessel or by procuring the goods so delivered. In either case, the seller must deliver the goods on the agreed date or within the agreed period and in the manner customary at the port.

A3 Transfer of risks

The seller bears all risks of loss of or damage to the goods until they have been delivered in accordance with A2, with the exception of loss or damage in the circumstance described in B3.

A4 Carriage

The seller must contract or procure a contract for the carriage of the goods from the agreed point of delivery, if any, at the place of delivery to the named port of destination or, if agreed, any point at that port. The contract of carriage must be made on usual terms at the seller’s cost and provide for carriage by the usual route in a vessel of the type normally used for the transport of the type of goods sold.

The seller must comply with any transport-related security requirements for transport to the destination.

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B THE BUYER’S OBLIGATIONS

B1 General obligations

The buyer must pay the price of the goods as provided in the contract of sale.

Any document to be provided by the buyer may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

B2 Taking delivery

The buyer must take delivery of the goods when they have been delivered under A2 and receive them from the carrier at the named port of destination.

B3 Transfer of risks

The buyer bears all risks of loss of or damage to the goods from the time they have been delivered under A2.

If the buyer fails to give notice in accordance with B10, then it bears all risks of loss of or damage to the goods from the agreed date or the end of the agreed period for shipment, provided that the goods have been clearly identified as the contract goods.

B4 Carriage

The buyer has no obligation to the seller to make a contract of carriage.

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A THE SELLER’S OBLIGATIONS

A5 Insurance

Unless otherwise agreed or customary in the particular trade, the seller must obtain, at its own cost, cargo insurance complying with the cover provided by Clauses (C) of the Institute Cargo Clauses (LMA/IUA) or any similar clauses. The insurance shall be contracted with underwriters or an insurance company of good repute and entitle the buyer, or any other person having an insurable interest in the goods, to claim directly from the insurer.

When required by the buyer, the seller must, subject to the buyer providing any necessary information requested by the seller, provide at the buyer’s cost any additional cover, if procurable, such as cover complying with the Institute War Clauses and/or Institute Strikes Clauses (LMA/IUA) or any similar clauses (unless such cover is already included with the cargo insurance described in the preceding paragraph).

The insurance shall cover, at a minimum, the price provided in the contract plus 10% (i.e. 110%) and shall be in the currency of the contract.

The insurance shall cover the goods from the point of delivery set out in A2 to at least the named port of destination.

The seller must provide the buyer with the insurance policy or certificate or any other evidence of insurance cover.

Moreover, the seller must provide the buyer, at the buyer’s request, risk and cost, with information that the buyer needs to procure any additional insurance.

A6 Delivery/transport document

The seller must, at its own cost, provide the buyer with the usual transport document for the agreed port of destination.

This transport document must cover the contract goods, be dated within the period agreed for shipment, enable the buyer to claim the goods from the carrier at the port of destination and, unless otherwise agreed, enable the buyer to sell the goods in transit by the transfer of the document to a subsequent buyer or by notification to the carrier.

When such a transport document is issued in negotiable form and in several originals, a full set of originals must be presented to the buyer.

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B THE BUYER’S OBLIGATIONS

B5 Insurance

The buyer has no obligation to the seller to make a contract of insurance. However, the buyer must provide the seller, upon request, with any information necessary for the seller to procure any additional insurance requested by the buyer under A5.

B6 Delivery/transport document

The buyer must accept the transport document provided under A6 if it is in conformity with the contract.

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A THE SELLER’S OBLIGATIONS

A7 Export/import clearance

a) Export clearance

Where applicable, the seller must carry out and pay for all export clearance formalities required by the country of export, such as:

  • export licence;
  • security clearance for export;
  • pre-shipment inspection; and
  • any other official authorisation.

b) Assistance with import clearance

Where applicable, the seller must assist the buyer, at the buyer’s request, risk and cost, in obtaining any documents and/or information related to all transit/import clearance formalities, including security requirements and pre-shipment inspection, needed by any country of transit or the country of import.

A8 Checking/packaging/marking

The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) that are necessary for the purpose of delivering the goods in accordance with A2.

The seller must, at its own cost, package the goods, unless it is usual for the particular trade to transport the type of goods sold unpackaged. The seller must package and mark the goods in the manner appropriate for their transport, unless the parties have agreed on specific packaging or marking requirements.

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B THE BUYER’S OBLIGATIONS

B7 Export/import clearance

a) Assistance with export clearance

Where applicable, the buyer must assist the seller at the seller’s request, risk and cost in obtaining any documents and/or information related to all export clearance formalities, including security requirements and pre-shipment inspection, needed by the country of export.

b) Import clearance

Where applicable, the buyer must carry out and pay for all formalities required by any country of transit and the country of import, such as:

  • import licence and any licence required for transit;
  • security clearance for import and any transit;
  • pre-shipment inspection; and
  • any other official authorisation.

B8 Checking/packaging/marking

The buyer has no obligation to the seller.

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A THE SELLER’S OBLIGATIONS

A9 Allocation of costs

The seller must pay:

  1. all costs relating to the goods until they have been delivered in accordance with A2, other than those payable by the buyer under B9;
  1. the freight and all other costs resulting from A4, including the costs of loading the goods on board and transport-related security costs;
  2. any charges for unloading at the agreed port of discharge that were for the seller’s account under the contract
    1. of carriage;
  3. the costs of transit that were for the seller’s account under the contract of carriage;
  4. the costs of providing the usual proof to the buyer under A6 that the goods have been delivered;
  5. the costs of insurance resulting from A5;
  6. where applicable, duties, taxes and any other costs related to export clearance under A7(a); and
  7. the buyer for all costs and charges related to providing assistance in obtaining documents and information in accordance with B7(a).

A10 Notices

The seller must notify the buyer that the goods have been delivered in accordance with A2.

The seller must give the buyer any notice required to enable the buyer to receive the goods.

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B THE BUYER’S OBLIGATIONS

B9 Allocation of costs

The buyer must pay:

  1. all costs relating to the goods from the time they have been delivered under A2, other than those payable by the seller under A9;
  1. the costs of transit, unless such costs were for the seller’s account under the contract of carriage;
  2. unloading costs including lighterage and wharfage charges, unless such costs and charges were for the seller’s account under the contract of carriage;
  3. the costs of any additional insurance procured at the buyer’s request under A5 and B5;
  4. the seller for all costs and charges related to providing assistance in obtaining documents and information in accordance with A5 and A7(b);
  5. where applicable, duties, taxes and any other costs related to transit or import clearance under B7(b); and
  6. any additional costs incurred if it fails to give notice in accordance with B10, from the agreed date or the end of the agreed period for shipment, provided that the goods have been clearly identified as the contract goods.

B10 Notices

The buyer must, whenever it is agreed that the buyer is entitled to determine the time for dispatching the goods and/or the point of receiving the goods within the named place of destination, give the seller sufficient notice.

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Article-by-Article Text of Rules

A1 GENERAL OBLIGATIONS

EXW (Ex Works)

The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract.

Any document to be provided by the seller may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

FCA (Free Carrier)

The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract.

Any document to be provided by the seller may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

CPT (Carriage Paid To)

The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract.

Any document to be provided by the seller may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

CIP (Carriage and Insurance Paid To)

The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract.

Any document to be provided by the seller may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

DAP (Delivered at Place)

The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract.

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Any document to be provided by the seller may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

DPU (Delivered at Place Unloaded)

The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract.

Any document to be provided by the seller may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

DDP (Delivered Duty Paid)

The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract.

Any document to be provided by the seller may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

FAS (Free Alongside Ship)

The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract.

Any document to be provided by the seller may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

FOB (Free on Board)

The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract.

Any document to be provided by the seller may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

CFR (Cost and Freight)

The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract.

Any document to be provided by the seller may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

CIF (Cost Insurance and Freight)

The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract.

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Any document to be provided by the seller may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

B1 GENERAL OBLIGATIONS

EXW (Ex Works)

The buyer must pay the price of the goods as provided in the contract of sale.

Any document to be provided by the buyer may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

FCA (Free Carrier)

The buyer must pay the price of the goods as provided in the contract of sale.

Any document to be provided by the buyer may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

CPT (Carriage Paid To)

The buyer must pay the price of the goods as provided in the contract of sale.

Any document to be provided by the buyer may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

CIP (Carriage and Insurance Paid To)

The buyer must pay the price of the goods as provided in the contract of sale.

Any document to be provided by the buyer may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

DAP (Delivered at Place)

The buyer must pay the price of the goods as provided in the contract of sale.

Any document to be provided by the buyer may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

DPU (Delivered at Place Unloaded)

The buyer must pay the price of the goods as provided in the contract of sale.

Any document to be provided by the buyer may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

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DDP (Delivered Duty Paid)

The buyer must pay the price of the goods as provided in the contract of sale.

Any document to be provided by the buyer may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

FAS (Free Alongside Ship)

The buyer must pay the price of the goods as provided in the contract of sale.

Any document to be provided by the buyer may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

FOB (Free on Board)

The buyer must pay the price of the goods as provided in the contract of sale.

Any document to be provided by the buyer may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

CFR (Cost and Freight)

The buyer must pay the price of the goods as provided in the contract of sale.

Any document to be provided by the buyer may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

CIF (Cost Insurance and Freight)

The buyer must pay the price of the goods as provided in the contract of sale.

Any document to be provided by the buyer may be in paper or electronic form as agreed or, where there is no agreement, as is customary.

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A2 DELIVERY

EXW (Ex Works)

The seller must deliver the goods by placing them at the disposal of the buyer at the agreed point, if any, at the named place of delivery, not loaded on any collecting vehicle. If no specific point has been agreed within the named place of delivery, and if there are several points available, the seller may select the point that best suits its purpose. The seller must deliver the goods on the agreed date or within the agreed period.

FCA (Free Carrier)

The seller must deliver the goods to the carrier or another person nominated by the buyer at the named point, if any, at the named place, or procure goods so delivered.

The seller must deliver the goods

  1. on the agreed date or
  2. at the time within the agreed period notified by the buyer under B10(b) or,
  3. if no such time is notified, then at the end of the agreed period.

Delivery is completed either:

  1. If the named place is the seller’s premises, when the goods have been loaded on the means of transport provided by the buyer; or
  2. In any other case, when the goods are placed at the disposal of the carrier or another person nominated by the buyer on the seller’s means of transport ready for unloading.

If no specific point has been notified by the buyer under B10(d) within the named place of delivery, and if there are several points available, the seller may select the point that best suits its purpose.

CPT (Carriage Paid To)

The seller must deliver the goods by handing them over to the carrier contracted in accordance with A4 or by procuring the goods so delivered. In either case the seller must deliver the goods on the agreed date or within the agreed period.

CIP (Carriage and Insurance Paid To)

The seller must deliver the goods by handing them over to the carrier contracted in accordance with A4 or by procuring the goods so delivered. In either case the seller must deliver the goods on the agreed date or within the agreed period.

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DAP (Delivered at Place)

The seller must deliver the goods by placing them at the disposal of the buyer on the arriving means of transport ready for unloading at the agreed point, if any, at the named place of destination or by procuring the goods so delivered. In either case the seller must deliver the goods on the agreed date or within the agreed period.

DPU (Delivered at Place Unloaded)

The seller must unload the goods from the arriving means of transport and must then deliver them by placing them at the disposal of the buyer at the agreed point, if any, at the named place of destination or by procuring the goods so delivered. In either case the seller must deliver the goods on the agreed date or within the agreed period.

DDP (Delivered Duty Paid)

The seller must deliver the goods by placing them at the disposal of the buyer on the arriving means of transport ready for unloading at the agreed point, if any, at the named place of destination or by procuring the goods so delivered. In either case the seller must deliver the goods on the agreed date or within the agreed period.

FAS (Free Alongside Ship)

The seller must deliver the goods either by placing them alongside the vessel nominated by the buyer at the loading point, if any, indicated by the buyer at the named port of shipment or by procuring the goods so delivered.

The seller must deliver the goods

  1. on the agreed date or
  2. at the time within the agreed period notified by the buyer under B10or,
  3. if no such time is notified, then at the end of the agreed period and
  4. in the manner customary at the port.

If no specific loading point has been indicated by the buyer, the seller may select the point within the named port of shipment that best suits its purpose.

FOB (Free on Board)

The seller must deliver the goods either by placing them on board the vessel nominated by the buyer at the loading point, if any, indicated by the buyer at the named port of shipment or by procuring the goods so delivered.

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The seller must deliver the goods

  1. on the agreed date or
  2. at the time within the agreed period notified by the buyer under B10or,
  3. if no such time is notified, then at the end of the agreed period and
  4. in the manner customary at the port.
    If no specific loading point has been indicated by the buyer, the seller may select the point within the named port of shipment that best suits its purpose.

CFR (Cost and Freight)

The seller must deliver the goods either by placing them on board the vessel or by procuring the goods so delivered. In either case, the seller must deliver the goods on the agreed date or within the agreed period and in the manner customary at the port.

CIF (Cost Insurance and Freight)

The seller must deliver the goods either by placing them on board the vessel or by procuring the goods so delivered. In either case, the seller must deliver the goods on the agreed date or within the agreed period and in the manner customary at the port.

B2 TAKING DELIVERY

EXW (Ex Works)

The buyer must take delivery of the goods when they have been delivered under A2 and notice given under A10.

FCA (Free Carrier)

The buyer must take delivery of the goods when they have been delivered under A2.

CPT (Carriage Paid To)

The buyer must take delivery of the goods when they have been delivered under A2 and receive them from the carrier at the named place of destination or if agreed, at the point within that place.

CIP (Carriage and Insurance Paid To)

The buyer must take delivery of the goods when they have been delivered under A2 and receive them from the carrier at the named place of destination or if agreed, at the point within that place. INCOTERMS® 2020 142 | INTERNATIONAL CHAMBER OF COMMERCE (ICC)

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DAP (Delivered at Place)

The buyer must take delivery of the goods when they have been delivered under A2.

DPU (Delivered at Place Unloaded)

The buyer must take delivery of the goods when they have been delivered under A2.

DDP (Delivered Duty Paid)

The buyer must take delivery of the goods when they have been delivered under A2.

FAS (Free Alongside Ship)

The buyer must take delivery of the goods when they have been delivered under A2.

FOB (Free on Board)

The buyer must take delivery of the goods when they have been delivered under A2.

CFR (Cost and Freight)

The buyer must take delivery of the goods when they have been delivered under A2 and receive them from the carrier at the named port of destination.

CIF (Cost Insurance and Freight)

The buyer must take delivery of the goods when they have been delivered under A2 and receive them from the carrier at the named port of destination

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A3 TRANSFER OF RISKS

EXW (Ex Works)

The seller bears all risks of loss of or damage to the goods until they have been delivered in accordance with A2, with the exception of loss or damage in the circumstance described in B3.

FCA (Free Carrier)

The seller bears all risks of loss of or damage to the goods until they have been delivered in accordance with A2, with the exception of loss or damage in the circumstances described in B3.

CPT (Carriage Paid To)

The seller bears all risks of loss of or damage to the goods until they have been delivered in accordance with A2, with the exception of loss or damage in the circumstance described in B3.

CIP (Carriage and Insurance Paid To)

The seller bears all risks of loss of or damage to the goods until they have been delivered in accordance with A2, with the exception of loss or damage in the circumstance described in B3.

DAP (Delivered at Place)

The seller bears all risks of loss of or damage to the goods until they have been delivered in accordance with A2, with the exception of loss or damage in the circumstances described in B3.

DPU (Delivered at Place Unloaded)

The seller bears all risks of loss of or damage to the goods until they have been delivered in accordance with A2, with the exception of loss or damage in the circumstances described in B3.

DDP (Delivered Duty Paid)

The seller bears all risks of loss of or damage to the goods until they have been delivered in accordance with A2, with the exception of loss or damage in the circumstances described in B3.

FAS (Free Alongside Ship)

The seller bears all risks of loss of or damage to the goods until they have been delivered in accordance with A2, with the exception of loss or damage in the circumstances described in

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FOB (Free on Board)

The seller bears all risks of loss of or damage to the goods until they have been delivered in accordance with A2, with the exception of loss or damage in the circumstances described in B3.

CFR (Cost and Freight)

The seller bears all risks of loss of or damage to the goods until they have been delivered in accordance with A2, with the exception of loss or damage in the circumstance described in B3.

CIF (Cost Insurance and Freight)

The seller bears all risks of loss of or damage to the goods until they have been delivered in accordance with A2, with the exception of loss or damage in the circumstance described in B3.

B3 TRANSFER OF RISKS

EXW (Ex Works)

The buyer bears all risks of loss of or damage to the goods from the time they have been delivered under A2.

If the buyer fails to give notice in accordance with B10, then the buyer bears all risks of loss of or damage to the goods from the agreed date or the end of the agreed period for delivery, provided that the goods have been clearly identified as the contract goods.

FCA (Free Carrier)

The buyer bears all risks of loss of or damage to the goods from the time they have been delivered under A2.

If:

  1. the buyer fails to nominate a carrier or another person under A2 or to give notice in accordance with B10; or
  2. the carrier or person nominated by the buyer under B10(a) fails to take the goods into its charge,

then, the buyer bears all risks of loss of or damage to the goods:

  1. from the agreed date, or in the absence of an agreed date,
  2. from the time selected by the buyer under B10(b); or, if no such time has been notified,
  3. from the end of any agreed period for delivery,

provided that the goods have been clearly identified as the contract goods.

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CPT (Carriage Paid To)

The buyer bears all risks of loss of or damage to the goods from the time they have been delivered under A2.

If the buyer fails to give notice in accordance with B10, then the buyer bears all risks of loss of or damage to the goods from the agreed date or the end of the agreed period for delivery, provided that the goods have been clearly identified as the contract goods.

CIP (Carriage and Insurance Paid To)

The buyer bears all risks of loss of or damage to the goods from the time they have been delivered under A2.

If the buyer fails to give notice in accordance with B10, then the buyer bears all risks of loss of or damage to the goods from the agreed date or the end of the agreed period for delivery, provided that the goods have been clearly identified as the contract goods.

DAP (Delivered at Place)

The buyer bears all risks of loss of or damage to the goods from the time they have been delivered under A2.

If:

  1. the buyer fails to fulfil its obligations in accordance with B7, then it bears all resulting risks of loss of or damage to the goods; or
  2. the buyer fails to give notice in accordance with B10, then it bears all risks of loss of or damage to the goods from the agreed date or the end of the agreed period for delivery,
    provided that the goods have been clearly identified as the contract goods.

DPU (Delivered at Place Unloaded)

The buyer bears all risks of loss of or damage to the goods from the time they have been delivered under A2.

If:

  1. the buyer fails to fulfil its obligations in accordance with B7, then it bears all resulting risks of loss of or damage to the goods; or
  2. the buyer fails to give notice in accordance with B10, then it bears all risks of loss of or damage to the goods from the agreed date or the end of the agreed period for delivery,

provided that the goods have been clearly identified as the contract goods.

DDP (Delivered Duty Paid)

The buyer bears all risks of loss of or damage to the goods from the time they have been delivered under A2

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If:

  1. the buyer fails to fulfil its obligations in accordance with B7, then it bears all resulting risks of loss of or damage to the goods; or
  2. the buyer fails to give notice in accordance with B10, then it bears all risks of loss of or damage to the goods from the agreed date or the end of the agreed period for delivery,
    provided that the goods have been clearly identified as the contract goods.

FAS (Free Alongside Ship)

The buyer bears all risks of loss of or damage to the goods from the time they have been delivered under A2.

If:

  1. the buyer fails to give notice in accordance with B10; or
  2. the vessel nominated by the buyer fails to arrive on time to enable the seller to comply with A2, fails to take the goods, or closes for cargo earlier than the time notified in accordance with B10;

then the buyer bears all risks of loss of or damage to the goods:

  1. from the agreed date, or in the absence of an agreed date,
  2. from the date selected by the buyer under B10, or, if no such date has been notified,
  3. from the end of any agreed period for delivery,

provided that the goods have been clearly identified as the contract goods.

FOB (Free on Board)

The buyer bears all risks of loss of or damage to the goods from the time they have been delivered under A2.

If:

  1. the buyer fails to give notice in accordance with B10; or
  2. the vessel nominated by the buyer fails to arrive on time to enable the seller to comply with A2, fails to take the goods, or closes for cargo earlier than the time notified in accordance with B10;

then the buyer bears all risks of loss of or damage to the goods:

  1. from the agreed date, or in the absence of an agreed date,
  2. from the date selected by the buyer under B10, or, if no such date has been notified,
  3. from the end of any agreed period for delivery

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provided that the goods have been clearly identified as the contract goods.

CFR (Cost and Freight)

The buyer bears all risks of loss of or damage to the goods from the time they have been delivered under A2.

If the buyer fails to give notice in accordance with B10, then it bears all risks of loss of or damage to the goods from the agreed date or the end of the agreed period for shipment, provided that the goods have been clearly identified as the contract goods.

CIF (Cost Insurance and Freight)

The buyer bears all risks of loss of or damage to the goods from the time they have been delivered under A2.

If the buyer fails to give notice in accordance with B10, then it bears all risks of loss of or damage to the goods from the agreed date or the end of the agreed period for shipment, provided that the goods have been clearly identified as the contract goods

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A4 CARRIAGE

EXW (Ex Works)

The seller has no obligation to the buyer to make a contract of carriage.

However, the seller must provide the buyer, at the buyer’s request, risk and cost, with any information in the possession of the seller, including transport-related security requirements, that the buyer needs for arranging carriage.

FCA (Free Carrier)

The seller has no obligation to the buyer to make a contract of carriage. However, the seller must provide the buyer, at the buyer’s request, risk and cost, with any information in the possession of the seller, including transport-related security requirements, that the buyer needs for arranging carriage. If agreed, the seller must contract for carriage on the usual terms at the buyer’s risk and cost.

The seller must comply with any transport-related security requirements up to delivery.

CPT (Carriage Paid To)

The seller must contract or procure a contract for the carriage of the goods from the agreed point of delivery, if any, at the place of delivery to the named place of destination or, if agreed, any point at that place. The contract of carriage must be made on usual terms at the seller’s cost and provide for carriage by the usual route in a customary manner of the type normally used for carriage of the type of goods sold. If a specific point is not agreed or is not determined by practice, the seller may select the point of delivery and the point at the named place of destination that best suit its purpose.

The seller must comply with any transport-related security requirements for transport to the destination.

CIP (Carriage and Insurance Paid To)

The seller must contract or procure a contract for the carriage of the goods from the agreed point of delivery, if any, at the place of delivery to the named place of destination or, if agreed, any point at that place. The contract of carriage must be made on usual terms at the seller’s cost and provide for carriage by the usual route in a customary manner of the type normally used for carriage of the type of goods sold. If a specific point is not agreed or is not determined by practice, the seller may select the point of delivery and the point at the named place of destination that best suit its purpose.

The seller must comply with any transport-related security requirements for transport to the destination.

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DAP (Delivered at Place)

The seller must contract or arrange at its own cost for the carriage of the goods to the named place of destination or to the agreed point, if any, at the named place of destination. If a specific point is not agreed or is not determined by practice, the seller may select the point at the named place of destination that best suits its purpose.

The seller must comply with any transport-related security requirements for transport to the destination.

DPU (Delivered at Place Unloaded)

The seller must contract or arrange at its own cost for the carriage of the goods to the named place of destination or to the agreed point, if any, at the named place of destination. If a specific point is not agreed or is not determined by practice, the seller may select the point at the named place of destination that best suits its purpose.

The seller must comply with any transport-related security requirements for transport to the destination.

DDP (Delivered Duty Paid)

The seller must contract or arrange at its own cost for the carriage of the goods to the named place of destination or to the agreed point, if any, at the named place of destination. If a specific point is not agreed or is not determined by practice, the seller may select the point at the named place of destination that best suits its purpose.

The seller must comply with any transport-related security requirements for transport to the destination.

FAS (Free Alongside Ship)

The seller has no obligation to the buyer to make a contract of carriage. However, the seller must provide the buyer, at the buyer’s request, risk and cost, with any information in the possession of the seller, including transport-related security requirements, that the buyer needs for arranging carriage. If agreed, the seller must contract for carriage on the usual terms at the buyer’s risk and cost.

The seller must comply with any transport-related security requirements up to delivery.

FOB (Free on Board)

The seller has no obligation to the buyer to make a contract of carriage. However, the seller must provide the buyer, at the buyer’s request, risk and cost, with any information in the possession of the seller, including transport-related security requirements, that the buyer needs for arranging carriage. If agreed, the seller must contract for carriage on the usual terms at the buyer’s risk and cost.

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The seller must comply with any transport-related security requirements up to delivery.

CFR (Cost and Freight)

The seller must contract or procure a contract for the carriage of the goods from the agreed point of delivery, if any, at the place of delivery to the named port of destination or, if agreed, any point at that port. The contract of carriage must be made on usual terms at the seller’s cost and provide for carriage by the usual route in a vessel of the type normally used for the transport of the type of goods sold.

The seller must comply with any transport-related security requirements for transport to the destination.

CIF (Cost Insurance and Freight)

The seller must contract or procure a contract for the carriage of the goods from the agreed point of delivery, if any, at the place of delivery to the named port of destination or, if agreed, any point at that port. The contract of carriage must be made on usual terms at the seller’s cost and provide for carriage by the usual route in a vessel of the type normally used for the transport of the type of goods sold.

The seller must comply with any transport-related security requirements for transport to the destination.

B4 CARRIAGE

EXW (Ex Works)

It is up to the buyer to contract or arrange at its own cost for the carriage of the goods from the named place of delivery.

FCA (Free Carrier)

The buyer must contract or arrange at its own cost for the carriage of the goods from the named place of delivery, except when the contract of carriage is made by the seller as provided for in A4.

CPT (Carriage Paid To)

The buyer has no obligation to the seller to make a contract of carriage.

CIP (Carriage and Insurance Paid To)

The buyer has no obligation to the seller to make a contract of carriage.

DAP (Delivered at Place)

The buyer has no obligation to the seller to make a contract of carriage

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DPU (Delivered at Place Unloaded)

The buyer has no obligation to the seller to make a contract of carriage.

DDP (Delivered Duty Paid)

The buyer has no obligation to the seller to make a contract of carriage.

FAS (Free Alongside Ship)

The buyer must contract at its own cost for the carriage of the goods from the named port of shipment, except when the contract of carriage is made by the seller as provided for in A4.

FOB (Free on Board)

The buyer must contract at its own cost for the carriage of the goods from the named port of shipment, except when the contract of carriage is made by the seller as provided for in A4.

CFR (Cost and Freight)

The buyer has no obligation to the seller to make a contract of carriage.

CIF (Cost Insurance and Freight)

The buyer has no obligation to the seller to make a contract of carriage.

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A5 INSURANCE

EXW (Ex Works)

The seller has no obligation to the buyer to make a contract of insurance. However, the seller must provide the buyer, at the buyer’s request, risk and cost with information in the possession of the seller that the buyer needs for obtaining insurance.

FCA (Free Carrier)

The seller has no obligation to the buyer to make a contract of insurance. However, the seller must provide the buyer, at the buyer’s request, risk and cost, with information in the possession of the seller that the buyer needs for obtaining insurance.

CPT (Carriage Paid To)

The seller has no obligation to the buyer to make a contract of insurance. However, the seller must provide the buyer, at the buyer’s request, risk and cost, with information in the possession of the seller that the buyer needs for obtaining insurance.

CIP (Carriage and Insurance Paid To)

Unless otherwise agreed or customary in the particular trade, the seller must obtain, at its own cost, cargo insurance complying with the cover provided by Clauses (A) of the Institute Cargo Clauses (LMA/IUA) or any similar clauses as appropriate to the means of transport used. The insurance shall be contracted with underwriters or an insurance company of good repute and entitle the buyer, or any other person having an insurable interest in the goods, to claim directly from the insurer.

When required by the buyer, the seller must, subject to the buyer providing any necessary information requested by the seller, provide at the buyer’s cost any additional cover, if procurable, such as cover complying with the Institute War Clauses and/or Institute Strikes Clauses (LMA/IUA) or any similar clauses (unless such cover is already included with the cargo insurance described in the preceding paragraph).

The insurance shall cover, at a minimum, the price provided in the contract plus 10% (i.e. 110%) and shall be in the currency of the contract.

The insurance shall cover the goods from the point of delivery set out in A2 to at least the named place of destination.

The seller must provide the buyer with the insurance policy or certificate or any other evidence of insurance cover.

Moreover, the seller must provide the buyer, at the buyer’s request, risk and cost, with information that the buyer needs to procure any additional insurance.

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DAP (Delivered at Place)

The seller has no obligation to the buyer to make a contract of insurance.

DPU (Delivered at Place Unloaded)

The seller has no obligation to the buyer to make a contract of insurance.

DDP (Delivered Duty Paid)

The seller has no obligation to the buyer to make a contract of insurance.

FAS (Free Alongside Ship)

The seller has no obligation to the buyer to make a contract of insurance. However, the seller must provide the buyer, at the buyer’s request, risk and cost, with information in possession of the seller that the buyer needs for obtaining insurance.

FOB (Free on Board)

The seller has no obligation to the buyer to make a contract of insurance. However, the seller must provide the buyer, at the buyer’s request, risk and cost, with information in the possession of the seller that the buyer needs for obtaining insurance.

CFR (Cost and Freight)

The seller has no obligation to the buyer to make a contract of insurance. However, the seller must provide the buyer, at the buyer’s request, risk and cost, with information in the possession of the seller that the buyer needs for obtaining insurance.

CIF (Cost Insurance and Freight)

Unless otherwise agreed or customary in the particular trade, the seller must obtain, at its own cost, cargo insurance complying with the cover provided by Clauses (C) of the Institute Cargo Clauses (LMA/IUA) or any similar clauses. The insurance shall be contracted with underwriters or an insurance company of good repute and entitle the buyer, or any other person having an insurable interest in the goods, to claim directly from the insurer.

When required by the buyer, the seller must, subject to the buyer providing any necessary information requested by the seller, provide at the buyer’s cost any additional cover, if procurable, such as cover complying with the Institute War Clauses and/or Institute Strikes Clauses (LMA/IUA) or any similar clauses (unless such cover is already included with the cargo insurance described in the preceding paragraph).

The insurance shall cover, at a minimum, the price provided in the contract plus 10% (i.e. 110%) and shall be in the currency of the contract.

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The insurance shall cover the goods from the point of delivery set out in A2 to at least the named port of destination.

The seller must provide the buyer with the insurance policy or certificate or any other evidence of insurance cover.

Moreover, the seller must provide the buyer, at the buyer’s request, risk and cost, with information that the buyer needs to procure any additional insurance.

B5 INSURANCE

EXW (Ex Works)

The buyer has no obligation to the seller to make a contract of insurance.

FCA (Free Carrier)

The buyer has no obligation to the seller to make a contract of insurance.

CPT (Carriage Paid To)

The buyer has no obligation to the seller to make a contract of insurance.

CIP (Carriage and Insurance Paid To)

The buyer has no obligation to the seller to make a contract of insurance. However, the buyer must provide the seller, upon request, with any information necessary for the seller to procure any additional insurance requested by the buyer under A5.

DAP (Delivered at Place)

The buyer has no obligation to the seller to make a contract of insurance. However, the buyer must provide the seller, at the seller’s request, risk and cost, with information that the seller needs for obtaining insurance.

DPU (Delivered at Place Unloaded)

The buyer has no obligation to the seller to make a contract of insurance. However, the buyer must provide the seller, at the seller’s request, risk and cost, with information that the seller needs for obtaining insurance.

DDP (Delivered Duty Paid)

The buyer has no obligation to the seller to make a contract of insurance. However, the buyer must provide the seller, at the seller’s request, risk and cost, with information that the seller needs for obtaining insurance.

FAS (Free Alongside Ship)

The buyer has no obligation to the seller to make a contract of insurance

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FOB (Free on Board)

The buyer has no obligation to the seller to make a contract of insurance.

CFR (Cost and Freight)

The buyer has no obligation to the seller to make a contract of insurance.

CIF (Cost Insurance and Freight)

The buyer has no obligation to the seller to make a contract of insurance. However, the buyer must provide the seller, upon request, with any information necessary for the seller to procure any additional insurance requested by the buyer under A5.

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A6 DELIVERY/TRANSPORT DOCUMENT

EXW (Ex Works)

The seller has no obligation to the buyer.

FCA (Free Carrier)

The seller must provide the buyer at the seller’s cost with the usual proof that the goods have been delivered in accordance with A2.

The seller must provide assistance to the buyer, at the buyer’s request, risk and cost, in obtaining a transport document.

Where the buyer has instructed the carrier to issue to the seller a transport document under B6, the seller must provide any such document to the buyer.

CPT (Carriage Paid To)

If customary or at the buyer’s request, the seller must provide the buyer, at the seller’s cost, with the usual transport document[s] for the transport contracted in accordance with A4.

This transport document must cover the contract goods and be dated within the period agreed for shipment. If agreed or customary, the document must also enable the buyer to claim the goods from the carrier at the named place of destination and enable the buyer to sell the goods in transit by the transfer of the document to a subsequent buyer or by notification to the carrier.

When such a transport document is issued in negotiable form and in several originals, a full set of originals must be presented to the buyer.

CIP (Carriage and Insurance Paid To)

If customary or at the buyer’s request, the seller must provide the buyer, at the seller’s cost, with the usual transport document[s] for the transport contracted in accordance with A4.

This transport document must cover the contract goods and be dated within the period agreed for shipment. If agreed or customary, the document must also enable the buyer to claim the goods from the carrier at the named place of destination and enable the buyer to sell the goods in transit by the transfer of the document to a subsequent buyer or by notification to the carrier.

When such a transport document is issued in negotiable form and in several originals, a full set of originals must be presented to the buyer.

DAP (Delivered at Place)

The seller must provide the buyer, at the seller’s cost, with any document required to enable the buyer to take over the goods.

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DPU (Delivered at Place Unloaded)

The seller must provide the buyer, at the seller’s cost, with any document required to enable the buyer to take over the goods.

DDP (Delivered Duty Paid)

The seller must provide the buyer, at the seller’s cost, with any document required to enable the buyer to take over the goods.

FAS (Free Alongside Ship)

The seller must provide the buyer, at the seller’s cost, with the usual proof that the goods have been delivered in accordance with A2.

Unless such proof is a transport document, the seller must provide assistance to the buyer, at the buyer’s request, risk and cost, in obtaining a transport document.

FOB (Free on Board)

The seller must provide the buyer, at the seller’s cost, with the usual proof that the goods have been delivered in accordance with A2.

Unless such proof is a transport document, the seller must provide assistance to the buyer, at the buyer’s request, risk and cost, in obtaining a transport document.

CFR (Cost and Freight)

The seller must, at its own cost, provide the buyer with the usual transport document for the agreed port of destination.

This transport document must cover the contract goods, be dated within the period agreed for shipment, enable the buyer to claim the goods from the carrier at the port of destination and, unless otherwise agreed, enable the buyer to sell the goods in transit by the transfer of the document to a subsequent buyer or by notification to the carrier.

When such a transport document is issued in negotiable form and in several originals, a full set of originals must be presented to the buyer.

CIF (Cost Insurance and Freight)

The seller must, at its own cost, provide the buyer with the usual transport document for the agreed port of destination.

This transport document must cover the contract goods, be dated within the period agreed for shipment, enable the buyer to claim the goods from the carrier at the port of destination and, unless otherwise agreed, enable the buyer to sell the goods in transit by the transfer of the document to a subsequent buyer or by notification to the carrier.

When such a transport document is issued in negotiable form and in several originals, a full set of originals must be presented to the buyer.

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B6 DELIVERY / TRANSPORT DOCUMENT

EXW (Ex Works)

The buyer must provide the seller with appropriate evidence of having taken delivery.

FCA (Free Carrier)

The buyer must accept the proof that the goods have been delivered in accordance with A2.

If the parties have so agreed, the buyer must instruct the carrier to issue to the seller, at the buyer’s cost and risk, a transport document stating that the goods have been loaded (such as a bill of lading with an onboard notation).

CPT (Carriage Paid To)

The buyer must accept the transport document provided under A6 if it is in conformity with the contract.

CIP (Carriage and Insurance Paid To)

The buyer must accept the transport document provided under A6 if it is in conformity with the contract.

DAP (Delivered at Place)

The buyer must accept the document provided under A6.

DPU (Delivered at Place Unloaded)

The buyer must accept the document provided under A6.

DDP (Delivered Duty Paid)

The buyer must accept the document provided under A6.

FAS (Free Alongside Ship)

The buyer must accept the proof of delivery provided under A6.

FOB (Free on Board)

The buyer must accept the proof of delivery provided under A6.

CFR (Cost and Freight)

The buyer must accept the transport document provided under A6 if it is in conformity with the contract.

CIF (Cost Insurance and Freight)

The buyer must accept the transport document provided under A6 if it is in conformity with the contract

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A7 EXPORT/IMPORT CLEARANCE

EXW (Ex Works)

Where applicable, the seller must assist the buyer, at the buyer’s request, risk and cost, in obtaining any documents and/or information related to all export/transit/import clearance formalities required by the countries of export/transit/import, such as:

  • export/transit/import licence;
  • security clearance for export/transit/import;
  • pre-shipment inspection; and
  • any other official authorisation.

FCA (Free Carrier)

a) Export clearance Where applicable, the seller must carry out and pay for all export clearance formalities required by the country of export, such as:

  • export licence;
  • security clearance for export;
  • pre-shipment inspection; and
  • any other official authorisation.

b) Assistance with import clearance
Where applicable, the seller must assist the buyer, at the buyer’s request, risk and cost, in obtaining any documents and/or information related to all transit/import clearance formalities, including security requirements and pre-shipment inspection, needed by any country of transit or the country of import.

CPT (Carriage Paid To)

a) Export clearance
Where applicable, the seller must carry out and pay for all export clearance formalities required by the country of export, such as:

  • export licence;
  • security clearance for export;
  • pre-shipment inspection; and
  • any other official authorisation.

b) Assistance with import clearance

Where applicable, the seller must assist the buyer, at the buyer’s request, risk and cost, in obtaining any documents and/or information related to all transit/import clearance formalities, including security requirements and pre-shipment inspection, needed by any country of transit or the country of import.

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CIP (Carriage and Insurance Paid To)

a) Export clearance Where applicable, the seller must carry out and pay for all export clearance formalities required by the country of export, such as:

  • export licence;
  • security clearance for export;
  • pre-shipment inspection; and
  • any other official authorisation

b) Assistance with import clearance
Where applicable, the seller must assist the buyer, at the buyer’s request, risk and cost, in obtaining any documents and/or information related to all transit/import clearance formalities, including security requirements and pre-shipment inspection, needed by any country of transit or the country of import.

DAP (Delivered at Place)

a) Export and transit clearance

Where applicable, the seller must carry out and pay for all export and transit clearance formalities required by the country of export and any country of transit (other than the country of import), such as:

  • export/transit licence;
  • security clearance for export/transit;
  • pre-shipment inspection; and
  • any other official authorisation.

b) Assistance with import clearance

Where applicable, the seller must assist the buyer, at the buyer’s request, risk and cost, in obtaining any documents and/or information related to all import clearance formalities, including security requirements and pre-shipment inspection, needed by the country of import.

DPU (Delivered at Place Unloaded)

a) Export and transit clearance

Where applicable, the seller must carry out and pay for all export and transit clearance formalities required by the country of export and any country of transit (other than the country of import), such as:

  • export/transit licence;
  • security clearance for export/transit;
  • pre-shipment inspection; and
  • any other official authorisation.

b) Assistance with import clearance

Where applicable, the seller must assist the buyer, at the buyer’s request, risk and cost, in obtaining any documents

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and/or information related to all import clearance formalities, including security requirements and pre-shipment inspection, needed by the country of import.

DDP (Delivered Duty Paid)

Where applicable, the seller must carry out and pay for all export/transit/import clearance formalities required by the countries of export, transit and import, such as:

  • export/transit/import licence;
  • security clearance for export/transit/import;
  • pre-shipment inspection; and
  • any other official authorisation.

FAS (Free Alongside Ship)

a) Export clearance
Where applicable, the seller must carry out and pay for all export clearance formalities required by the country of export, such as:

  • export licence;
  • security clearance for export;
  • pre-shipment inspection; and
  • any other official authorisation.

b) Assistance with import clearance

Where applicable, the seller must assist the buyer, at the buyer’s request, risk and cost, in obtaining any documents and/or information related to all transit/import clearance formalities, including security requirements and pre-shipment inspection, needed by any country of transit or the country of import.

FOB (Free on Board)

a) Export clearance
Where applicable, the seller must carry out and pay for all export clearance formalities required by the country of export, such as:

  • export licence;
  • security clearance for export;
  • pre-shipment inspection; and
  • any other official authorisation.

b) Assistance with import clearance

Where applicable, the seller must assist the buyer, at the buyer’s request, risk and cost, in obtaining any documents and/or information related to all transit/import clearance formalities, including security requirements and pre-shipment inspection, needed by any country of transit or the country of import.

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CFR (Cost and Freight)

a) Export clearance Where applicable, the seller must carry out and pay for all export clearance formalities required by the country of export, such as:

  • export licence;
  • security clearance for export;
  • pre-shipment inspection; and
  • any other official authorisation.

b) Assistance with import clearance

Where applicable, the seller must assist the buyer, at the buyer’s request, risk and cost, in obtaining any documents and/or information related to all transit/import clearance formalities, including security requirements and pre-shipment inspection, needed by any country of transit or the country of import.

CIF (Cost Insurance and Freight)

a) Export clearance

Where applicable, the seller must carry out and pay for all export clearance formalities required by the country of export, such as:

  • export licence;
  • security clearance for export;
  • pre-shipment inspection; and
  • any other official authorisation.

b) Assistance with import clearance

Where applicable, the seller must assist the buyer, at the buyer’s request, risk and cost, in obtaining any documents and/or information related to all transit/import clearance formalities, including security requirements and pre-shipment inspection, needed by any country of transit or the country of import.

B7 EXPORT/IMPORT CLEARANCE

EXW (Ex Works)

Where applicable, it is up to the buyer to carry out and pay for all export/transit/import clearance formalities required by the countries of export/transit/import, such as:

  • export/transit/import licence;
  • security clearance for export/transit/import;
  • pre-shipment inspection; and
  • any other official authorisation.

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FCA (Free Carrier)

a) Assistance with export clearance

Where applicable, the buyer must assist the seller at the seller’s request, risk and cost in obtaining any documents and/or information related to all export clearance formalities, including security requirements and pre-shipment inspection, needed by the country of export.

b) Import clearance

Where applicable, the buyer must carry out and pay for all formalities required by any country of transit and the country of import, such as:

  • import licence and any licence required for transit;
  • security clearance for import and any transit;
  • pre-shipment inspection; and
  • any other official authorisation.

CPT (Carriage Paid To)

a) Assistance with export clearance

Where applicable, the buyer must assist the seller at the seller’s request, risk and cost in obtaining any documents and/or information related to all export clearance formalities, including security requirements and pre-shipment inspection, needed by the country of export.

b) Import clearance

Where applicable, the buyer must carry out and pay for all formalities required by any country of transit and the country of import, such as:

  • import licence and any licence required for transit;
  • security clearance for import and any transit;
  • pre-shipment inspection; and
  • any other official authorisation.

CIP (Carriage and Insurance Paid To)

a) Assistance with export clearance
Where applicable, the buyer must assist the seller at the seller’s request, risk and cost in obtaining any documents and/or information related to all export clearance formalities, including security requirements and pre-shipment inspection, needed by the country of export.

b) Import clearance
Where applicable, the buyer must carry out and pay for all formalities required by any country of transit and the country of import, such as:

  • import licence and any licence required for transit;
  • security clearance for import and any transit;
  • pre-shipment inspection; and
  • any other official authorisation.

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DAP (Delivered at Place)

a) Assistance with export and transit clearance
Where applicable, the buyer must assist the seller at the seller’s request, risk and cost in obtaining any documents and/or information related to all export/transit clearance formalities, including security requirements and pre-shipment inspection, needed by the country of export and any country of transit (other than the country of import).

b) Import clearance
Where applicable, the buyer must carry out and pay for all formalities required by the country of import, such as:

  • import licence;
  • security clearance for import;
  • pre-shipment inspection; and
  • any other official authorisation.

DPU (Delivered at Place Unloaded)

a) Assistance with export and transit clearance
Where applicable, the buyer must assist the seller at the seller’s request, risk and cost in obtaining any documents and/or information related to all export/transit clearance formalities, including security requirements and pre-shipment inspection, needed by the country of export and any country of transit (other than the country of import).

b) Import clearance
Where applicable, the buyer must carry out and pay for all formalities required by the country of import, such as:

  • import licence;
  • security clearance for import;
  • pre-shipment inspection; and
  • any other official authorisation.

DDP (Delivered Duty Paid)

Where applicable, the buyer must assist the seller, at the seller’s request, risk and cost in obtaining any documents and/or information related to all export/transit/import clearance formalities required by the countries of export/transit/import, such as:

  • export/transit/import licence;
  • security clearance for export, transit and import;
  • pre-shipment inspection; and
  • any other official authorisation.

FAS (Free Alongside Ship)

a) Assistance with export clearance
Where applicable, the buyer must assist the seller at the seller’s request, risk and cost in obtaining any documents

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and/or information related to all export clearance formalities, including security requirements and pre-shipment inspection, needed by the country of export.

b) Import clearance
Where applicable, the buyer must carry out and pay for all formalities required by any country of transit and the country of import, such as:

  • import licence and any licence required for transit;
  • security clearance for import and any transit;
  • pre-shipment inspection; and
  • any other official authorisation.

FOB (Free on Board)

a) Assistance with export clearance
Where applicable, the buyer must assist the seller at the seller’s request, risk and cost in obtaining any documents and/or information related to all export clearance formalities, including security requirements and pre-shipment inspection, needed by the country of export.

b) Import clearance
Where applicable, the buyer must carry out and pay for all formalities required by any country of transit and the country of import, such as:

  • import licence and any licence required for transit;
  • security clearance for import and any transit;
  • pre-shipment inspection; and
  • any other official authorisation.

CFR (Cost and Freight)

a) Assistance with export clearance
Where applicable, the buyer must assist the seller at the seller’s request, risk and cost in obtaining any documents and/or information related to all export clearance formalities, including security requirements and pre-shipment inspection, needed by the country of export.

b) Import clearance
Where applicable, the buyer must carry out and pay for all formalities required by any country of transit and the country of import, such as:

  • import licence and any licence required for transit;
  • security clearance for import and any transit;
  • pre-shipment inspection; and
  • any other official authorisation.

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CIF (Cost Insurance and Freight)

a) Assistance with export clearance
Where applicable, the buyer must assist the seller at the seller’s request, risk and cost in obtaining any documents and/or information related to all export clearance formalities, including security requirements and pre-shipment inspection, needed by the country of export.

b) Import clearance
Where applicable, the buyer must carry out and pay for all formalities required by any country of transit and the country of import, such as:

  • import licence and any licence required for transit;
  • security clearance for import and any transit;
  • pre-shipment inspection; and
  • any other official authorisation.

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A8 CHECKING / PACKAGING / MARKING

EXW (Ex Works)

The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) that are necessary for the purpose of delivering the goods in accordance with A2.

The seller must, at its own cost, package the goods, unless it is usual for the particular trade to transport the type of goods sold unpackaged. The seller must package and mark the goods in the manner appropriate for their transport, unless the parties have agreed on specific packaging or marking requirements.

FCA (Free Carrier)

The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) that are necessary for the purpose of delivering the goods in accordance with A2.

The seller must, at its own cost, package the goods, unless it is usual for the particular trade to transport the type of goods sold unpackaged. The seller must package and mark the goods in the manner appropriate for their transport, unless the parties have agreed on specific packaging or marking requirements.

CPT (Carriage Paid To)

The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) that are necessary for the purpose of delivering the goods in accordance with A2.

The seller must, at its own cost, package the goods, unless it is usual for the particular trade to transport the type of goods sold unpackaged. The seller must package and mark the goods in the manner appropriate for their transport, unless the parties have agreed on specific packaging or marking requirements.

CIP (Carriage and Insurance Paid To)

The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) that are necessary for the purpose of delivering the goods in accordance with A2.

The seller must, at its own cost, package the goods, unless it is usual for the particular trade to transport the type of goods sold unpackaged. The seller must package and mark the goods in the manner appropriate for their transport, unless the parties have agreed on specific packaging or marking requirements.

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DAP (Delivered at Place)

The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) that are necessary for the purpose of delivering the goods in accordance with A2.

The seller must, at its own cost, package the goods, unless it is usual for the particular trade to transport the type of goods sold unpackaged. The seller must package and mark the goods in the manner appropriate for their transport, unless the parties have agreed on specific packaging or marking requirements.

DPU (Delivered at Place Unloaded)

The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) that are necessary for the purpose of delivering the goods in accordance with A2.

The seller must, at its own cost, package the goods, unless it is usual for the particular trade to transport the type of goods sold unpackaged. The seller must package and mark the goods in the manner appropriate for their transport, unless the parties have agreed on specific packaging or marking requirements.

DDP (Delivered Duty Paid)

The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) that are necessary for the purpose of delivering the goods in accordance with A2.

The seller must, at its own cost, package the goods, unless it is usual for the particular trade to transport the type of goods sold unpackaged. The seller must package and mark the goods in the manner appropriate for their transport, unless the parties have agreed on specific packaging or marking requirements.

FAS (Free Alongside Ship)

The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) that are necessary for the purpose of delivering the goods in accordance with A2.

The seller must, at its own cost, package the goods, unless it is usual for the particular trade to transport the type of goods sold unpackaged. The seller must package and mark the goods in the manner appropriate for their transport, unless the parties have agreed on specific packaging or marking requirements.

FOB (Free on Board)

The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) that are necessary for the purpose of delivering the goods in accordance with A2.

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The seller must, at its own cost, package the goods, unless it is usual for the particular trade to transport the type of goods sold unpackaged. The seller must package and mark the goods in the manner appropriate for their transport, unless the parties have agreed on specific packaging or marking requirements.

CFR (Cost and Freight)

The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) that are necessary for the purpose of delivering the goods in accordance with A2.

The seller must, at its own cost, package the goods, unless it is usual for the particular trade to transport the type of goods sold unpackaged. The seller must package and mark the goods in the manner appropriate for their transport, unless the parties have agreed on specific packaging or marking requirements.

CIF (Cost Insurance and Freight)

The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) that are necessary for the purpose of delivering the goods in accordance with A2.

The seller must, at its own cost, package the goods, unless it is usual for the particular trade to transport the type of goods sold unpackaged. The seller must package and mark the goods in the manner appropriate for their transport, unless the parties have agreed on specific packaging or marking requirements.

B8 CHECKING / PACKAGING / MARKING

EXW (Ex Works)

The buyer has no obligation to the seller.

FCA (Free Carrier)

The buyer has no obligation to the seller.

CPT (Carriage Paid To)

The buyer has no obligation to the seller.

CIP (Carriage and Insurance Paid To)

The buyer has no obligation to the seller.

DAP (Delivered at Place)

The buyer has no obligation to the seller.

DPU (Delivered at Place Unloaded)

The buyer has no obligation to the seller.

DDP (Delivered Duty Paid)

The buyer has no obligation to the seller

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FAS (Free Alongside Ship)

The buyer has no obligation to the seller.

FOB (Free on Board)

The buyer has no obligation to the seller.

CFR (Cost and Freight)

The buyer has no obligation to the seller.

CIF (Cost Insurance and Freight)

The buyer has no obligation to the seller.

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A9 ALLOCATION OF COSTS

EXW (Ex Works)

The seller must pay all costs relating to the goods until they have been delivered in accordance with A2, other than those payable by the buyer under B9.

FCA (Free Carrier)

The seller must pay:

  1. all costs relating to the goods until they have been delivered in accordance with A2, other than those payable by the buyer under B9;
  2. the costs of providing the usual proof to the buyer under A6 that the goods have been delivered;
  3. where applicable, duties, taxes and any other costs related to export clearance under A7(a); and
  4. the buyer for all costs and charges related to providing assistance in obtaining documents and information in accordance with B7(a).

CPT (Carriage Paid To)

The seller must pay:

  1. all costs relating to the goods until they have been delivered in accordance with A2, other than those payable by the buyer under B9;
  2. transport and all other costs resulting from A4, including the costs of loading the goods and transport-related security costs;
  3. any charges for unloading at the agreed place of destination but only if those charges were for the seller’s account under the contract of carriage;
  4. the costs of transit that were for the seller’s account under the contract of carriage;
  5. the costs of providing the usual proof to the buyer under A6 that the goods have been delivered;
  6. where applicable, duties, taxes and any other costs related to export clearance under A7(a); and
  7. the buyer for all costs and charges related to providing assistance in obtaining documents and information in accordance with B7(a).

CIP (Carriage and Insurance Paid To)

The seller must pay:

  1. all costs relating to the goods until they have been delivered in accordance with A2, other than those payable by the buyer under B9;

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  1. transport and all other costs resulting from A4, including the costs of loading the goods and transport-related security costs;
  2. any charges for unloading at the agreed place of destination but only if those charges were for the seller’s account under the contract of carriage;
  3. the costs of transit that were for the seller’s account under the contract of carriage;
  4. the costs of providing the usual proof to the buyer under A6 that the goods have been delivered;
  5. the costs of insurance resulting from A5;
  6. where applicable, duties, taxes and any other costs related to export clearance under A7(a); and
  7. the buyer for all costs and charges related to providing assistance in obtaining documents and information in accordance with B7(a).

DAP (Delivered at Place)

The seller must pay:

  1. all costs relating to the goods and their transport until they have been delivered in accordance with A2, other than those payable by the buyer under B9;
  2. any charges for unloading at the place of destination but only if those charges were for the seller’s account under the contract of carriage;
  3. the cost of providing the delivery/transport document under A6;
  4. where applicable, duties, taxes and any other costs related to export and any transit clearance under A7(a); and
  5. the buyer for all costs and charges related to providing assistance in obtaining documents and information in accordance with B5 and B7(a).

DPU (Delivered at Place Unloaded)

The seller must pay:

  1. all costs relating to the goods and their transport until they have been unloaded and delivered in accordance with A2, other than those payable by the buyer under B9;
  2. the cost of providing the delivery/transport document under A6;
  3. where applicable, duties, taxes and any other costs related to export and any transit clearance under A7(a); and
  4. the buyer for all costs and charges related to providing assistance in obtaining documents and information in accordance with B5 and B7(a).

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DDP (Delivered Duty Paid)

The seller must pay:

  1. all costs relating to the goods and their transport until they have been delivered in accordance with A2, other than those payable by the buyer under B9;
  2. any charges for unloading at the place of destination but only if those charges were for the seller’s account under the contract of carriage;
  3. the cost of providing the delivery/transport document under A6;
  4. where applicable, duties, taxes and any other costs related to export, transit and import clearance under A7; and
  5. the buyer for all costs and charges related to providing assistance in obtaining documents and information in accordance with B5 and B7.

FAS (Free Alongside Ship)

The seller must pay:

  1. all costs relating to the goods until they have been delivered in accordance with A2, other than those payable by the buyer under B9;
  2. the costs of providing the usual proof to the buyer under A6 that the goods have been delivered;
  3. where applicable, duties, taxes and any other costs related to export clearance under A7(a); and
  4. the buyer for all costs and charges related to providing assistance in obtaining documents and information in accordance with B7(a).

FOB (Free on Board)

The seller must pay:

  1. all costs relating to the goods until they have been delivered in accordance with A2, other than those payable by the buyer under B9;
  2. the costs of providing the usual proof to the buyer under A6 that the goods have been delivered;
  3. where applicable, duties, taxes and any other costs related to export clearance under A7(a); and
  4. the buyer for all costs and charges related to providing assistance in obtaining documents and information in accordance with B7(a).

CFR (Cost and Freight)

The seller must pay:

  1. all costs relating to the goods until they have been delivered in accordance with A2, other than those payable by the buyer under B9;

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  1. the freight and all other costs resulting from A4, including the costs of loading the goods on board and transport-related security costs;
  2. any charges for unloading at the agreed port of discharge that were for the seller’s account under the contract of carriage;
  3. the costs of transit that were for the seller’s account under the contract of carriage;
  4. the costs of providing the usual proof to the buyer under A6 that the goods have been delivered;
  5. where applicable, duties, taxes and any other costs related to export clearance under A7(a); and
  6. the buyer for all costs and charges related to providing assistance in obtaining documents and information in accordance with B7(a).

CIF (Cost Insurance and Freight)

The seller must pay:

  1. (a)all costs relating to the goods until they have been delivered in accordance with A2, other than those payable by the buyer under B9;
  2. (b)the freight and all other costs resulting from A4, including the costs of loading the goods on board and transport-related security costs;
  3. (c)any charges for unloading at the agreed port of discharge that were for the seller’s account under the contract of carriage;
  4. (d)the costs of transit that were for the seller’s account under the contract of carriage;
  5. (e)the costs of providing the usual proof to the buyer under A6 that the goods have been delivered;
  6. (f)the costs of insurance resulting from A5;
  7. (g)where applicable, duties, taxes and any other costs related to export clearance under A7(a); and
  8. (h)the buyer for all costs and charges related to providing assistance in obtaining documents and information in accordance with B7(a).

B9 ALLOCATION OF COSTS

EXW (Ex Works)

The buyer must:

  1. pay all costs relating to the goods from the time they have been delivered under A2;
  2. reimburse all costs and charges incurred by the seller in providing assistance or information under A4, A5, or A7;

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  1. pay, where applicable, all duties, taxes and other charges, as well as the costs of carrying out customs formalities payable upon export; and
  2. pay any additional costs incurred by failing either to take delivery of the goods when they have been placed at its disposal or to give appropriate notice in accordance with B10, provided that the goods have been clearly identified as the contract goods.

FCA (Free Carrier)

The buyer must pay:

  1. all costs relating to the goods from the time they have been delivered under A2, other than those payable by the seller under A9;
  2. the seller for all costs and charges related to providing assistance in obtaining documents and information in accordance with A4, A5, A6 and A7(b);
  3. where applicable, duties, taxes and any other costs related to transit or import clearance under B7(b); and
  4. any additional costs incurred, either because:

(i) the buyer fails to nominate a carrier or another person under B10, or

(ii) the carrier or person nominated by the buyer under B10 fails to take the goods into its charge,

provided that the goods have been clearly identified as the contract goods.

CPT (Carriage Paid To)

The buyer must pay:

  1. all costs relating to the goods from the time they have been delivered under A2, other than those payable by the seller under A9;
  2. the costs of transit, unless such costs were for the seller’s account under the contract of carriage;
  3. unloading costs, unless such costs were for the seller’s account under the contract of carriage;
  4. the seller for all costs and charges related to providing assistance in obtaining documents and information in accordance with A5 and A7(b);
  5. where applicable, duties, taxes and any other costs related to transit or import clearance under B7(b); and
  6. any additional costs incurred if it fails to give notice in accordance with B10, from the agreed date or the end of the agreed period for shipment, provided that the goods have been clearly identified as the contract goods.

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CIP (Carriage and Insurance Paid To)

The buyer must pay:

  1. all costs relating to the goods from the time they have been delivered under A2, other than those payable by the seller under A9;
  2. the costs of transit, unless such costs were for the seller’s account under the contract of carriage;
  3. unloading costs, unless such costs were for the seller’s account under the contract of carriage;
  4. the costs of any additional insurance procured at the buyer’s request under A5 and B5;
  5. the seller for all costs and charges related to providing assistance in obtaining documents and information in accordance with A5 and A7(b);
  6. where applicable, duties, taxes and any other costs related to transit or import clearance under B7(b); and
  7. any additional costs incurred if it fails to give notice in accordance with B10, from the agreed date or the end of the agreed period for shipment, provided that the goods have been clearly identified as the contract goods.

DAP (Delivered at Place)

The buyer must pay:

  1. all costs relating to the goods from the time they have been delivered under A2;
  2. all costs of unloading necessary to take delivery of the goods from the arriving means of transport at the named place of destination, unless such costs were for the seller’s account under the contract of carriage;
  3. the seller for all costs and charges related to providing assistance in obtaining documents and information in accordance with A7(b);
  4. where applicable, duties, taxes and any other costs related to import clearance under B7(b); and
  5. any additional costs incurred by the seller if the buyer fails to fulfil its obligations in accordance with B7 or to give notice in accordance with B10, provided that the goods have been clearly identified as the contract goods.

DPU (Delivered at Place Unloaded)

The buyer must pay:

  1. all costs relating to the goods from the time they have been delivered under A2;
  2. the seller for all costs and charges related to providing assistance in obtaining documents and information in accordance with A7(b);

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  1. where applicable, duties, taxes and any other costs related to import clearance under B7(b); and
  2. any additional costs incurred by the seller if the buyer fails to fulfil its obligations in accordance with B7 or to give notice in accordance with B10, provided that the goods have been clearly identified as the contract goods.

DDP (Delivered Duty Paid)

The buyer must pay:

  1. all costs relating to the goods from the time they have been delivered under A2;
  2. all costs of unloading necessary to take delivery of the goods from the arriving means of transport at the named place of destination, unless such costs were for the seller’s account under the contract of carriage; and
  3. any additional costs incurred by the seller if the buyer fails to fulfil its obligations in accordance with B7 or to give notice in accordance with B10, provided that the goods have been clearly identified as the contract goods.

FAS (Free Alongside Ship)

The buyer must pay:

  1. all costs relating to the goods from the time they have been delivered under A2, other than those payable by the seller under A9;
  2. the seller for all costs and charges related to providing assistance in obtaining documents and information in accordance with A4, A5, A6 and A7(b);
  3. where applicable, duties, taxes and any other costs related to transit or import clearance under B7(b); and
  4. any additional costs incurred, either because:

(i) the buyer has failed to give notice under B10, or

(ii) the vessel nominated by the buyer under B10 fails to arrive on time, fails to take the goods, or closes for cargo earlier than the time notified in accordance with B10,

provided that the goods have been clearly identified as the contract goods.

FOB (Free on Board)

The buyer must pay:

  1. all costs relating to the goods from the time they have been delivered under A2, other than those payable by the seller under A9;
  2. the seller for all costs and charges related to providing assistance in obtaining documents and information in accordance with A4, A5, A6 and A7(b);

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  1. where applicable, duties, taxes and any other costs related to transit or import clearance under B7(b); and
  2. any additional costs incurred, either because:

  1. the buyer has failed to give notice under B10, or
  2. the vessel nominated by the buyer under B10 fails to arrive on time, fails to take the goods, or closes for cargo earlier than the time notified in accordance with B10,

provided that the goods have been clearly identified as the contract goods.

CFR (Cost and Freight)

The buyer must pay:

  1. all costs relating to the goods from the time they have been delivered under A2, other than those payable by the seller under A9;
  2. the costs of transit, unless such costs were for the seller’s account under the contract of carriage;
  3. unloading costs including lighterage and wharfage charges, unless such costs and charges were for the seller’s account under the contract of carriage;
  4. the seller for all costs and charges related to providing assistance in obtaining documents and information in accordance with A5 and A7(b);
  5. where applicable, duties, taxes and any other costs related to transit or import clearance under B7(b); and
  6. any additional costs incurred if it fails to give notice in accordance with B10, from the agreed date or the end of the agreed period for shipment, provided that the goods have been clearly identified as the contract goods.

CIF (Cost Insurance and Freight)

The buyer must pay:

  1. all costs relating to the goods from the time they have been delivered under A2, other than those payable by the seller under A9;
  2. the costs of transit, unless such costs were for the seller’s account under the contract of carriage;
  3. unloading costs including lighterage and wharfage charges, unless such costs and charges were for the seller’s account under the contract of carriage;
  4. the costs of any additional insurance procured at the buyer’s request under A5 and B5;
  5. the seller for all costs and charges related to providing assistance in obtaining documents and information in accordance with A5 and A7(b);
  6. where applicable, duties, taxes and any other costs related to transit or import clearance under B7(b); and
  7. any additional costs incurred if it fails to give notice in accordance with B10, from the agreed date or the end of the agreed period for shipment, provided that the goods have been clearly identified as the contract goods.

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A10 NOTICES

EXW (Ex Works)

The seller must give the buyer any notice needed to enable the buyer to take delivery of the goods.

FCA (Free Carrier)

The seller must give the buyer sufficient notice either that the goods have been delivered in accordance with A2 or that the carrier or another person nominated by the buyer has failed to take the goods within the time agreed.

CPT (Carriage Paid To)

The seller must notify the buyer that the goods have been delivered in accordance with A2.

The seller must give the buyer any notice required to enable the buyer to receive the goods.

CIP (Carriage and Insurance Paid To)

The seller must notify the buyer that the goods have been delivered in accordance with A2.

The seller must give the buyer any notice required to enable the buyer to receive the goods.

DAP (Delivered at Place)

The seller must give the buyer any notice required to enable the buyer to receive the goods.

DPU (Delivered at Place Unloaded)

The seller must give the buyer any notice required to enable the buyer to receive the goods.

DDP (Delivered Duty Paid)

The seller must give the buyer any notice required to enable the buyer to receive the goods.

FAS (Free Alongside Ship)

The seller must give the buyer sufficient notice either that the goods have been delivered in accordance with A2 or that the vessel has failed to take delivery of the goods within the time agreed.

FOB (Free on Board)

The seller must give the buyer sufficient notice either that the goods have been delivered in accordance with A2 or that the vessel has failed to take the goods within the time agreed.

CFR (Cost and Freight)

The seller must notify the buyer that the goods have been delivered in accordance with A2.

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The seller must give the buyer any notice required to enable the buyer to receive the goods.

CIF (Cost Insurance and Freight)

The seller must notify the buyer that the goods have been delivered in accordance with A2.

The seller must give the buyer any notice required to enable the buyer to receive the goods.

B10 NOTICES

EXW (Ex Works)

The buyer must, whenever it is agreed that the buyer is entitled to determine the time within an agreed period and/or the point of taking delivery within the named place, give the seller sufficient notice.

FCA (Free Carrier)

The buyer must notify the seller of

  1. the name of the carrier or another person nominated within sufficient time as to enable the seller to deliver the goods in accordance with A2;
  2. the selected time, if any, within the period agreed for delivery when the carrier or person nominated will receive the goods;
  3. the mode of transport to be used by the carrier or the person nominated including any transport-related security requirements; and
  4. the point where the goods will be received within the named place of delivery.

CPT (Carriage Paid To)

The buyer must, whenever it is agreed that the buyer is entitled to determine the time for dispatching the goods and/or the point of receiving the goods within the named place of destination, give the seller sufficient notice.

CIP (Carriage and Insurance Paid To)

The buyer must, whenever it is agreed that the buyer is entitled to determine the time for dispatching the goods and/or the point of receiving the goods within the named place of destination, give the seller sufficient notice.

DAP (Delivered at Place)

The buyer must, whenever it is agreed that the buyer is entitled to determine the time within an agreed period and/or the point of taking delivery within the named place of destination, give the seller sufficient notice.

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DPU (Delivered at Place Unloaded)

The buyer must, whenever it is agreed that the buyer is entitled to determine the time within an agreed period and/or the point of taking delivery within the named place of destination, give the seller sufficient notice.

DDP (Delivered Duty Paid)

The buyer must, whenever it is agreed that the buyer is entitled to determine the time within an agreed period and/or the point of taking delivery within the named place of destination, give the seller sufficient notice.

FAS (Free Alongside Ship)

The buyer must give the seller sufficient notice of any transport-related security requirements, the vessel name, loading point and, if any, the selected delivery date within the agreed period.

FOB (Free on Board)

The buyer must give the seller sufficient notice of any transport-related security requirements, the vessel name, loading point and, if any, the selected delivery date within the agreed period.

CFR (Cost and Freight)

The buyer must, whenever it is agreed that the buyer is entitled to determine the time for shipping the goods and/or the point of receiving the goods within the named port of destination, give the seller sufficient notice.

CIF (Cost Insurance and Freight)

The buyer must, whenever it is agreed that the buyer is entitled to determine the time for shipping the goods and/or the point of receiving the goods within the named port of destination, give the seller sufficient notice.