Incoterms of the insurance

» EXW (… named place) – IN FACTORY
This means that the seller fulfils his obligation to deliver when he has made the goods available at his premises (i.e. factory, workshop, warehouse etc.) to the buyer. This is a sale at origin.
The transmission of the risks and costs are verified when the delivery is made, in accordance with the terms of the contract.

» FCA (… named place) – FREE CARRIER
FREE CARRIER means that the seller fulfils his obligation to deliver when, verifying the transfer of risks and costs, he has cleared the goods for export, i.e. with all the corresponding customs procedures and tax obligations completed and paid.
This term can be used for any mode of transport, including multimodal transport.

» FAS (… named port of shipment) – FREE ALONGSIDE SHIP
FREE ALONGSIDE SHIP means that the seller fulfils his obligation to deliver when the goods have been placed alongside the vessel on the quay or in lighters at the named port of shipment. This is an ‘in the country’ condition of sale.

» FOB (…named port of shipment) – FREE ON BOARD
FREE ON BOARD means that the seller fulfils his obligation to deliver when the goods have passed over the ship’s rail at the named port of shipment in the purchase contract.
It requires the seller to pay the relevant taxes and to clear the goods for export, and the buyer chooses the vessel and pays the costs and sea freight.

» CFR (… named port of destination) – COST AND FREIGHT
COST AND FREIGHT means that the seller chooses and contracts the international sea transport and must pay the costs and freight necessary to bring the goods to the named port of destination.
The CFT term requires the seller to clear the goods for export, and is in charge of paying the relevant taxes and costs.

» CIF (… named port of destination) – COST, INSURANCE AND FREIGHT
COST, INSURANCE AND FREIGHT means that the seller has the same obligations as under CFR but with the addition that he has to contract and pay the minimum marine insurance coverage.
The transfer of the risks and costs is verified in the same way as for FOB.
The CIF term requires the seller to clear the goods for export and to pay the relevant taxes.

» CPT (named destination) – CARRIAGE PAID TO
CARRIAGE PAID TO means that the seller chooses the carrier and pays for the carriage of the goods to the destination named in the sales contract.
The CPT term requires the seller to clear the goods for export.

» CIP (named destination) – CARRIAGE AND INSURANCE PAID TO
CARRIAGE AND INSURANCE PAID TO means that the seller has the same obligation as under CPT, but with the addition that he has to procure freight insurance against the buyer’s risk of loss of or damage to the goods during the carriage. The seller contracts the insurance and pays the corresponding premium.
The seller is required to clear the goods for export. This term can be used for any mode of transport, including multimodal transport.

» DAF (… named place) – DELIVERED AT FRONTIER
DELIVERED AT FRONTIER means that the seller fulfils his obligation to delivery when the goods have been made available, cleared for export, at the named point and place at the frontier, but before the customs border of the adjoining country.
The transfer of risks and costs is verified when crossing the frontier.

» DES (… named port of destination) – DELIVERED EX SHIP
DELIVERED EX SHIP means that the seller fulfils his obligation to deliver, and therefore the transfer of risks and costs are verified, when the goods have been made available to the buyer on board the ship at the named port of destination. The buyer has to clear the goods for importation.

» DEQ (… named port of destination) – DELIVERED EX QUAY (DUTY PAID)
DELIVERED EX QUAY (duty paid) refers to the clause that means that the seller fulfils his obligation to deliver, verifying the corresponding transfer of risks and costs, when he has made the goods available to the buyer on the quay (wharf) at the named port of destination, cleared for importation.
If the parties wish the buyer to clear the goods for importation and pay the duty, the words DUTY UNPAID should be used instead of DUTY PAID.

» DDU (… named destination) – DUTY DELIVERED UNPAID
DELIVERED DUTY UNPAID means that the seller fulfils his obligation to deliver when the goods have been made available to the buyer at the named place in the country of importation.
The buyer has to pay any additional costs and to bear any risks caused by his failure to clear to goods for import in the time and place stipulated in the contract.
The term DDU can be used irrespective of the mode of transport.

» DDP (… named destination) – DELIVERED DUTY PAID
DELIVERED DUTY PAID means that the seller fulfils his obligation to deliver when the goods have been made available to the buyer at the named place in the country of importation and in the time or on the date stipulated.

While the EXW term represents the minimum obligation for the seller and the maximum for the buyer, DDP represents the maximum obligation for the seller and the minimum for the buyer.
If the parties wish for the buyer to clear the goods for importation and to pay the duty, the term DDU should be used.
The term may be used irrespective of the mode of transport.