EX WORKS (EXW) – Delivery at the Seller’s Premises
The term “Delivery at the Seller’s Premises” refers to the seller making the goods available to the buyer at the seller’s premises or another agreed location (such as a factory, warehouse, or place of business). The seller’s responsibility is limited to placing the goods at the disposal of the buyer. EXW represents the minimum obligation for the seller. While FCA (Free Carrier) is more suitable for international trade, this rule applies to domestic trade.

Features of the Delivery Terms: The seller makes the goods available to the buyer at the seller’s premises on the previously agreed date and notifies the buyer. The buyer then takes possession of the goods from the seller’s premises, prepares the necessary documents for export, completes the customs procedures, and imports the goods into their own country. From the moment the goods are delivered at the seller’s premises, all costs and risks related to the goods are borne by the buyer.

Seller’s Obligations: The seller must prepare the goods in accordance with the contract terms and keep them ready for the buyer at the agreed location (factory, warehouse, place of business, etc.) on the specified date or within the agreed time, without loading them onto any transportation vehicle. The seller notifies the buyer that the goods are available for pickup. The seller assists the buyer in obtaining the necessary documents for export. If requested by the buyer, and at the buyer’s expense and risk, the seller can make an arrangement with a transport agency and send the transportation document to the buyer so that the goods can be collected at the destination. The seller is not obligated to make a transportation or insurance contract with the buyer. If there is no clearly agreed specific point at the designated delivery location, and if there are several possible locations, the seller may choose the most suitable one for their purpose. The seller is responsible for paying the costs related to the necessary control procedures (quality control, measurement, weighing, counting, etc.) to ensure the goods are ready for delivery.

Buyer’s Obligations: The buyer is responsible for paying the price of the goods in accordance with the terms of the contract. All costs and risks related to the goods are borne by the buyer, including obtaining the necessary licenses and other administrative or commercial documents required for export and import procedures, securing the required permits, completing customs formalities, and paying customs duties. From the moment the goods are delivered at the seller’s premises, all risks and expenses related to the goods are the responsibility of the buyer. The buyer arranges transportation by contracting with a transport agency and pays the freight charges. The buyer must provide the seller with the necessary documents and proof of receipt of the goods. Additionally, the buyer is responsible for all inspection costs, including any pre-shipment inspection fees required by the exporting country.

FREE CARRIER (FCA)
The “Free Carrier” rule means that the seller delivers the goods to the carrier or another person nominated by the buyer at the seller’s premises or at another specified location.

Features of the Delivery Terms: In this delivery term, the seller completes the delivery once the goods, having cleared export customs formalities, are handed over to the first carrier at the agreed date and location. From that moment, all costs and risks related to the goods are transferred to the buyer. The freight charges, along with all other expenses, are borne by the buyer.

Seller’s Obligations: Under the FCA rule, the seller is responsible for clearing the goods for export, as applicable. The seller must, at their own cost and risk, obtain any necessary export licenses, prepare all documents required for the export of the goods, and complete the customs formalities. The seller has no obligation to enter into a carriage or insurance contract on behalf of the buyer. Upon the buyer’s request, the seller may make arrangements with a carrier or freight forwarder, with all costs borne by the buyer. The seller delivers the goods to the carrier or the carrier’s representative at the agreed date and location.
If no specific point has been clearly agreed upon at the named place of delivery, and if there are several possible points, the seller may select the point that best suits their purpose.
All costs and risks up to the moment of delivery are the seller’s responsibility. The seller must bear the costs related to necessary control procedures (such as quality control, measurement, weighing, counting, etc.) and the costs of any pre-shipment inspection required by the authorities of the export country. Additionally, the seller provides the buyer, at the seller’s expense, with the usual proof of delivery that the goods have been handed over.

Buyer’s Obligations: The buyer is responsible for paying the price of the goods in accordance with the terms of the contract. The buyer must receive the goods at the agreed date and location. From the moment of delivery, all costs and risks related to the goods are transferred to the buyer. The buyer is obliged to obtain any necessary documents or permits for import and pay the related customs duties and charges. The buyer arranges transportation by contracting with a freight forwarder or carrier and pays the freight costs. Except for the pre-shipment inspection costs mandated by the authorities of the export country, the buyer is responsible for paying any other mandatory pre-shipment inspection expenses.

CARRIAGE PAID TO (CPT)
The “Carriage Paid To” rule means that the seller delivers the goods to a carrier or another person nominated by the seller at an agreed place (if such a place has been agreed between the parties). The seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination.
When using the CPT rule (similarly to CIP, CFR, or CIF rules), the seller fulfills their delivery obligation not when the goods arrive at the destination, but when the goods are handed over to the carrier in accordance with the rule.

Features of the Delivery Term: This delivery term is particularly used in multimodal transportation. The seller is obliged to pay the freight charges up to the place of destination. However, from the moment the goods are handed over to the first carrier, all risks and any costs other than the freight charges transfer to the buyer.

Seller’s Obligations: The seller prepares the goods in accordance with the terms of the contract. They prepare the necessary documents to be used in the buyer’s country. The seller completes the export customs procedures. They conclude a transport contract with a carrier and pay the freight charges up to the destination port. From the moment the goods are handed over to the first carrier, all risks and costs related to the goods are transferred to the buyer. The seller notifies the buyer that the delivery has been made and provides the estimated arrival date. Additionally, the seller is responsible for covering the costs of all necessary inspection procedures (such as quality control, measurement, weighing, counting, etc.) required for the delivery of the goods, as well as any pre-shipment inspection costs mandated by the authorities of the export country.

Buyer’s Obligations:The buyer pays the price of the goods in accordance with the terms of the contract. The buyer arranges the necessary import documentation and completes the customs procedures. The buyer is responsible for paying the customs duties. From the moment the goods are delivered to the first carrier, all costs and risks associated with the goods, excluding freight, are the responsibility of the buyer. The buyer also bears any customs costs arising from transit transport. If not included in the freight cost, the buyer pays the unloading expenses and receives the negotiable bill of lading from the agent. The buyer must pay any pre-shipment inspection costs, except for those required by the export country authorities.

CARRIAGE AND INSURANCE PAID TO (CIP)
The “Carriage and Insurance Paid To” rule means that the seller delivers the goods to a carrier or another person chosen by the seller at a specified place (if no such place is agreed upon by the parties). The seller is responsible for making the transport contract and paying the transport costs to get the goods to the specified destination. When the CIP rule is applied (similar to CPT, CFR, or CIF rules), the seller fulfills their delivery obligation not when the goods arrive at the destination, but when they are handed over to the carrier as per the rule.

Characteristics of the Delivery Terms: In this delivery term, the seller assumes the insurance premium, freight, and loading costs and risks, and brings the goods to the port of shipment. The seller arranges and secures the services of the ship’s agent. The seller informs the buyer that the goods specified in the sales contract have been loaded on the specified date and at the specified place. The seller arranges the most limited coverage transportation insurance suitable for the type of goods being shipped by paying the insurance premium. However, if the buyer requests insurance for extraordinary risks (such as strikes, war, natural disasters, etc.), the buyer can ask the seller to extend the insurance coverage at their own expense, with the premium to be paid by the buyer. The insurance is obtained with an additional 10% of the goods’ price, as arranged by the seller.

Seller’s Responsibilities: The seller must prepare the goods in accordance with the contract terms. The seller, at their own expense, must obtain all necessary permits for the export of the goods, arrange all necessary documents for the export, and complete the customs procedures. The seller is responsible for preparing any necessary documents for use in the buyer’s country. By contracting with a carrier, the seller pays the freight charges to the destination port. The seller, at their own expense, must insure the goods they send. The seller must provide the buyer with the insurance policy or other evidence of the insurance coverage. Once the goods are handed over to the first carrier, the seller is relieved of the associated risks and expenses. From this point onward, all costs and risks associated with the goods, except freight and insurance premiums, are the responsibility of the buyer. The seller informs the buyer of the delivery and the expected arrival date.

Buyer’s Responsibilities: The buyer must pay the price of the goods in accordance with the contract terms. The buyer must promptly unload the goods, paying for the unloading and port charges at the destination port. The buyer must pay any mandatory pre-shipment inspection costs, excluding those required by the authorities of the exporting country. After the delivery, all costs, except for freight and insurance premiums, are borne by the buyer. The buyer must complete the customs procedures by arranging the necessary importation documents. The buyer pays all duties, taxes, and other charges required for importation, as well as the costs associated with customs procedures.

DELIVERED AT TERMINAL (DAT) (Effective: 01.01.2011)
The “Delivered at Terminal” rule means that the seller has delivered the goods when they are unloaded from the arriving transport vehicle at the designated terminal at the destination port. The terminal refers to any location, whether open or closed, such as a dock, warehouse, container yard, or road, rail, or air cargo station. If the parties intend for the seller to bear the costs and risks related to the transfer and handling of the goods beyond the terminal, the DAP or DDP rules should be used.

Characteristics of Delivery Terms: This means that the goods are provided to the buyer at the destination point, ready for unloading by the transport vehicle, replacing the previous DEQ term. Unlike DEQ, DAT can be used for multimodal transport. In other words, the goods are delivered at a terminal point determined by the buyer and seller (which could be a port, customs warehouse, or buyer’s factory), with unloading costs borne by the seller. All customs procedures, costs, taxes, and duties at customs are the responsibility of the buyer. The terms DAF, DES, and DDU have been replaced by DAT. The seller assumes the transport costs and the risks associated with terminal-related damages.

Seller’s Responsibilities: The seller must prepare the goods in accordance with the contract terms. The seller, at their own expense, must obtain all necessary permits for the export of the goods and complete all customs procedures for the export or passage of the goods through another country before delivery. The seller, at their own expense, must enter into a transport contract to move the goods to the designated terminal. The seller has no obligation to make an insurance contract with the buyer. The seller must deliver the goods by unloading them from the arriving transport vehicle at the agreed terminal at the destination port on the agreed date, making them available for the buyer’s disposal. If no specific terminal is agreed upon, the seller may select the most appropriate terminal at the agreed destination or port. The seller pays all costs related to the goods until they are properly delivered, including export customs costs and taxes or fees due for the export, as well as costs associated with the goods passing through any country.

Buyer’s Responsibilities: The buyer must pay the price of the goods in accordance with the contract terms. The buyer must obtain any necessary importation permits or other official permissions, and complete all customs procedures for the importation of the goods, at their own expense. All costs associated with the goods are the buyer’s responsibility once the goods are delivered as described above. The buyer must pay for any mandatory pre-shipment inspection costs, excluding those required by the authorities of the exporting country.

DELIVERED AT PLACE (DAP) (Effective: 01.01.2011)
The “Delivered at Place” rule means the seller has delivered the goods when they are made available to the buyer at the destination point without being unloaded from the transport vehicle.

Characteristics of Delivery Terms: This means the goods are made available to the buyer at a specific point for unloading by the transport vehicle, as per the agreed location. DAP has replaced previous terms like DAF, DES, and DDU. In other words, the goods are ready for unloading at the place determined by the buyer and seller (a port, customs point, or airport), with the transport vehicle available for unloading. All customs procedures, costs, taxes, and duties are the buyer’s responsibility. The seller assumes the transport costs and the risks associated with the transportation of the goods to the destination.

Seller’s Responsibilities: The seller must prepare the goods in accordance with the contract terms. The seller, at their own expense, must obtain all necessary permits for the export of the goods and complete all necessary customs procedures for the export or passage of the goods before delivery. The seller, at their own expense, must enter into a transport contract to move the goods to the designated terminal. The seller has no obligation to make an insurance contract with the buyer. The seller must deliver the goods by making them available for unloading at the agreed location, whether or not a specific point is designated, and must bear all costs related to the goods until they are properly delivered, including export customs costs, taxes, and fees, as well as any costs related to the passage of goods through other countries.

Buyer’s Obligations: The buyer shall pay for the goods in accordance with the terms of the contract. Where applicable, the buyer must obtain any necessary import permits or other official authorizations at their own expense and complete all customs procedures for the importation of the goods. All costs related to the goods from the moment they are delivered as described above are the buyer’s responsibility. Unless otherwise stated in the transportation contract, the buyer is responsible for paying the costs required to unload the arriving transportation vehicle at the designated destination. Where applicable, the buyer shall pay all duties, taxes, fees, and other charges for the importation of the goods. The buyer must pay for any pre-shipment inspections required by the authorities of the exporting country, except for those specifically ordered by the authorities of the exporting or importing country.

DELIVERED DUTY PAID (DDP):
The “Delivered Duty Paid” (DDP) term means that the seller delivers the goods, cleared for import, to the buyer at the agreed destination, and is responsible for paying all customs duties and taxes at the destination.

Characteristics of the delivery term: This delivery term is based on the same principles as the DDU term; however, under DDP, the seller is also responsible for paying the customs duties. The seller delivers the goods as if they were being handed over to a local seller in the buyer’s country. If the parties wish the buyer to bear all damage and costs related to the import customs clearance, the DAP term should be used.

Seller’s Obligations: The DDP term represents the maximum obligations for the seller. The seller prepares the goods in accordance with the contract terms. They prepare all necessary documents for both their own country and the buyer’s country. The seller completes the export and import customs procedures. At their own expense, the seller must arrange a transportation contract to transport the goods to the designated terminal. The seller is not obligated to enter into an insurance contract with the buyer. The seller provides the carrier and pays the freight charges. Until delivery, the seller is responsible for all costs and risks related to the goods. The seller delivers the goods at the agreed location and date in the buyer’s country, paying customs duties as well. Unless otherwise explicitly stated in the sale contract, VAT and all other taxes related to the importation are the responsibility of the seller.

Buyer’s Obligations: The buyer pays for the goods in accordance with the contract terms and takes delivery of the goods. From the moment the goods are delivered as foreseen, the buyer is responsible for all costs related to the goods. The buyer is not obligated to pay for any pre-shipment inspection costs required by the export or import country authorities.

FREE ALONGSIDE SHIP (FAS)
The “Free Alongside Ship” (FAS) term means the seller delivers the goods alongside the ship at the specified port of shipment, ready for loading by the buyer’s selected carrier (for example, at a dock or lighter). If the goods are in containers, the seller typically delivers them to a terminal instead of alongside the ship. In such cases, this term is not applicable, and the FCA term should be used.

Characteristics of the delivery term: Under this delivery term, the seller is responsible for bringing the goods to the side of the ship. If the goods are at the dock, they are delivered at the loading place. If the ship is anchored offshore, the goods are delivered alongside the ship using lighters. From this point, any risks of loss or damage to the goods are the buyer’s responsibility. All costs and freight charges related to the goods are borne by the buyer. The buyer is responsible for all export-related documents and customs procedures. If the buyer is unable to act as the exporter in their country, this delivery term should not be chosen.

Seller’s Obligations: The seller prepares the goods in accordance with the contract terms. Upon the buyer’s request, and at the buyer’s cost and risk, the seller assists in obtaining the necessary documents and administrative or commercial papers required in the buyer’s country. The seller is not obligated to enter into a transportation or insurance contract with the buyer. The seller delivers the goods at the specified port, at the specified time, to the ship chosen by the buyer. From this point, all costs and risks related to the goods pass to the buyer. At the buyer’s request, the seller arranges the preparation of the loading documents, sends them to the buyer for receiving the goods at the destination port, and makes the necessary notifications without delay. The seller must, where applicable, pay for the customs clearance costs and any duties, taxes, and other fees required for export.

Buyer’s Obligations: The buyer pays for the goods in accordance with the contract terms. The buyer prepares all necessary documents related to export and import and pays for all customs costs. The buyer informs the seller of the expected arrival time of the ship at the port of loading. The buyer takes delivery of the goods when they are ready for shipment. From this point, all costs and risks are the buyer’s responsibility. The buyer is responsible for paying any mandatory pre-shipment inspection costs, excluding those required by the exporting country’s authorities.

FREE ON BOARD (FOB)
The “Free On Board” (FOB) term means the seller delivers the goods, cleared for export, on board the ship at the designated port of shipment or provides the goods to the buyer’s carrier for delivery. This term may not apply when the seller delivers the goods to the carrier at a terminal rather than loading them directly onto the ship. For example, when goods are in containers, this form of delivery is common. In such cases, the FCA term should be used.

Characteristics of the delivery term: Under this delivery term, the seller is responsible for delivering the goods to the ship provided by the buyer, at the specified time and place. Once the goods pass the ship’s rail, any damage, loss, or costs are the buyer’s responsibility. The seller prepares all necessary export documents and completes the customs clearance procedures, delivering the goods as required.

Seller’s Responsibilities: The seller prepares the goods in accordance with the terms of the contract. At the designated port and on the specified date, the seller loads the goods onto the ship arranged by the buyer. The seller is not obligated to make a transportation contract or an insurance contract with the buyer. The seller prepares the necessary documents for the buyer’s country, completes customs procedures, and informs the buyer that the loading has been completed. The seller sends the transportation document and other required documents for use in the buyer’s country, according to the payment terms. The seller is responsible for any damage or loss that occurs before the goods pass the ship’s rail (the ship’s deck). As applicable, the seller must pay the expenses related to export customs clearance and all fees, taxes, and charges that need to be paid for export.

Buyer’s Responsibilities: The buyer pays for the goods in accordance with the contract terms. The buyer arranges customs documents and completes customs procedures for importation. The buyer pays the customs duties. The buyer contracts with a freight forwarder and pays for the freight charges. Once the goods pass the ship’s rail at the loading port, all expenses and risks related to the goods are the responsibility of the buyer. As applicable, the buyer must pay all fees, taxes, and costs related to the import, customs procedures for the goods’ importation, and any transit costs if the goods pass through any country. The buyer must pay for any required pre-loading inspections, excluding those mandated by authorities in the exporting country.

COST AND FREIGHT (CFR)
The “Cost and Freight” rule refers to the seller delivering the goods onto the ship or procuring already delivered goods onto the ship. This rule may not apply if the seller delivers the goods to the carrier at a terminal before being loaded onto the ship, for example, when the goods are in a container. In such cases, the CPT rule should be used.
When the CFR rule is used (similar to the CIP, CPT, or CIF rules), the seller fulfills their delivery obligation not when the goods reach the destination but when they hand the goods over to the carrier according to the relevant rule.

Characteristics of the Delivery Terms: Under this delivery term, the seller bears all costs and risks to bring the goods to the loading port. The seller completes customs procedures, pays for the freight charges, and executes the loading. From this point onward, all costs and risks related to the goods, other than freight, are the buyer’s responsibility.

Seller’s Responsibilities: The seller prepares the goods in accordance with the contract terms. The seller prepares the necessary documents for the buyer’s country and completes the customs procedures. The seller contracts with a freight forwarder and pays for the freight charges to the destination port. The seller must make a transportation contract for the goods to be carried to the specified terminal at their own expense. The seller is not obligated to make an insurance contract with the buyer. After the goods pass the ship’s rail, all expenses and risks, other than freight, are the buyer’s responsibility. The seller informs the buyer that the loading has been completed and provides the estimated date of arrival. The seller sends the transportation document and other necessary documents to the buyer.

Buyer’s Responsibilities: The buyer pays for the goods according to the terms of the contract. The buyer arranges customs documents and completes the customs procedures for import. The buyer pays the customs duties. The buyer pays for the unloading costs and port fees at the destination port and ensures prompt unloading of the goods. The buyer is responsible for paying all costs, other than freight, incurred during transportation. As applicable, the buyer must pay all fees, taxes, and costs related to the import, customs procedures for importation, and any transit costs if the goods pass through any country, unless they fall under the transportation agreement. The buyer must pay for any necessary pre-loading inspections, excluding those required by authorities in the exporting country.

COST, INSURANCE AND FREIGHT (CIF)
The “Cost, Insurance, and Freight” rule refers to the seller delivering the goods onto the ship or procuring already delivered goods onto the ship. This rule may not apply if the seller delivers the goods to the carrier at a terminal before being loaded onto the ship, for example, when the goods are in a container. In such cases, the CIP rule should be used.
When the CIF rule is used (similar to the CIP, CPT, or CFR rules), the seller fulfills their delivery obligation not when the goods reach the destination but when they hand the goods over to the carrier according to the relevant rule.

Characteristics of the Delivery Terms: Under this delivery term, the seller assumes the insurance premium, freight, loading charges, and risks, and brings the goods to the loading port. The seller contracts with the ship’s agent and arranges the loading. The seller notifies the buyer that the goods have been loaded on the specified date and at the agreed location. The seller arranges the appropriate minimum level of marine cargo insurance for the goods after loading them onto the ship, paying the insurance premium. Once the goods are loaded onto the ship, all costs and risks, except for freight and insurance premium, are the buyer’s responsibility.

Seller’s Responsibilities: The seller prepares the goods in accordance with the contract terms. The seller prepares the necessary documents for the buyer’s country and completes customs procedures. The seller must make a transportation and insurance contract for the goods to be transported to the specified terminal at their own expense. The seller contracts with a freight forwarder and pays for the freight charges to the destination port. The seller arranges the insurance for the goods, paying the insurance premium. The seller informs the buyer of the estimated arrival time at the destination port. The seller sends the transportation document and other necessary documents to the buyer. As applicable, the seller must pay for all expenses related to export customs clearance and all fees, taxes, and other charges required for export.

Buyer’s Responsibilities: The buyer pays for the goods according to the contract terms. The buyer arranges customs documents and completes the customs procedures for importation. The buyer pays the customs duties. The buyer pays for the unloading costs and port fees at the destination port and ensures prompt unloading of the goods. After delivery, the buyer assumes all costs except for freight and insurance premium. The buyer must pay for any required pre-loading inspections, excluding those mandated by the authorities in the exporting country.
9) DELIVERED AT FRONTIER (DAF) (This term was abolished in 2011)
This term refers to the seller’s obligation to deliver the goods at a location or point at the frontier, before the customs border of the adjacent country, where the goods are made available for the buyer to take over after they have been cleared for export.
The term “frontier” can refer to any boundary, including the border of the exporting country. Therefore, it is crucial that the specific point or location of the border is clearly defined within the term.


10) DELIVERED EX SHIP (DES) (This term was abolished in 2011)
This term indicates that the seller’s obligation ends when the goods are made available to the buyer on board the ship at the designated port of arrival, ready for pickup without having passed through the import customs clearance. The seller bears all costs and risks associated with bringing the goods to the designated port of arrival. This term can only be used for sea or inland waterway transportation.


11) DELIVERED EX QUAY (Duty Paid) (DEQ) (This term was abolished in 2011)
(With the port of arrival specified)
The term “Delivered Ex Quay” means that the seller delivers the goods by placing them at the quay (dock) at the designated port of arrival, without having completed the import customs formalities. The seller must bear all costs and risks related to transporting the goods to the designated port and unloading them onto the quay (dock). The DEQ term stipulates that the buyer is responsible for customs clearance, including all associated taxes, duties, and charges.
This situation is the opposite of previous Incoterms versions where the seller was responsible for customs clearance for import.
However, if the parties wish the seller to bear the costs associated with import clearance, this should be clearly stated in the sales contract with the appropriate wording.
This term can only be used when the goods are delivered by unloading them from the ship to the quay (dock) at the arrival port via sea, inland waterways, or multimodal transportation. However, if the parties wish the seller to bear the costs related to transferring the goods from the quay to another location at or outside the port, the DDU or DDP terms should be used.

12) DELIVERED DUTY UNPAID (DDU) (This term was abolished in 2011)
This term signifies that the seller’s obligation ends when the goods are made available for the buyer at the designated place in the importing country. The seller bears the risk and costs of transporting the goods to that point and completing the necessary customs formalities (excluding taxes, duties, and charges payable for import).
The buyer assumes any additional costs and risks resulting from the failure to clear customs in time for import.
If the parties want the seller to complete the customs formalities and bear the costs and risks related to this, they should finalize this by adding explicit words to the contract to this effect.
If the parties want to include certain costs for importation (e.g., VAT) as part of the seller’s obligations, they should clarify this by adding appropriate wording. This term can be used regardless of the mode of transportation.