incoterms 2010 - illustrated guide

The World Trade Press Illustrated Guide to

INCOTERMS2010A comprehensive guide to the 11 INCOTERMS 2010

Professional Industry Report

®1

2 World Trade Press

© Copyright 2004-2010 by World Trade Press. All Rights Reserved. www.WorldTradePress.com

World Trade PressIllustrated Guide to Incoterms® 2010*

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Copyright NoticesWorld Trade Press Illustrated Guide to Incoterms® 2010© Copyright 2000-2010 by World Trade Press. All RightsReserved. Reproduction or translation of any part of thiswork without the express written permission of thecopyright holder is unlawful. Requests for permissionsand/or translation or electronic rights should be ad-dressed to “Publisher” at the above address.

Additional Copyright and Trademark NoticesIncoterms® is a registered trademark of the InternationalChamber of Commerce (ICC), Paris, France and is usedhere for informational purposes only. The text of Inco-terms 2010 is © 2010 by ICC Publishing S.A. The full textof Incoterms 2010 is contained in ICC publication No.715, ISBN 978-92-8420080-1. In the USA contact ICCPublishing, Inc., 1212 Avenue of the Americas, 21st Floor,New York, New York 10036, Tel: +[1] (212) 703-5066,www.iccbooksusa.net. ICC HQ are ICC Publishing S.A.,38 Cours Albert, 1er, 75008 Paris, France, Tel: +[33] (1)49 53 28 28, www.iccbooks.com. *This World Trade Press Illustrated Guide to In-coterms® 2010 is independently authored andpublished and is not sponsored or endorsed by, oraffiliated with, the ICC.

CONTENTS

Introduction to Incoterms 2010 . . . . . . . . . . . . . . . . . . . 3Incoterm Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Incoterm Classes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Important Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Notes on Incoterms 2010 . . . . . . . . . . . . . . . . . . . . . . . . 5

“E” TERMSDeparture Terms

EXWEx Works(. . . named place of delivery) . . . . . . . . . . . . . . . . . . . . . 6

“F” TERMSMain Carriage Unpaid Terms

FCAFree Carrier(. . . named place of delivery) . . . . . . . . . . . . . . . . . . . . . 8FASFree Alongside Ship(. . . named port of shipment) . . . . . . . . . . . . . . . . . . . . 10FOBFree On Board (. . . named port of shipment) . . . . . . . . . . . . . . . . . . . . 12

“C” TERMSMain Carriage Paid Terms

CFRCost and Freight (. . . named port of destination) . . . . . . . . . . . . . . . . . . 14CIFCost, Insurance and Freight (... named port of destination) . . . . . . . . . . . . . . . . . . . 16CPTCarriage Paid To (. . . named place of destination) . . . . . . . . . . . . . . . . . . 18CIPCarriage and Insurance Paid To (. . . named place of destination) . . . . . . . . . . . . . . . . . . 20

“D” TERMSArrival Terms

DATDelivered At Terminal (. . . named terminal at port or place of destination) . . 22DAPDelivered At Place(. . . named place of destination) . . . . . . . . . . . . . . . . . . 24DDPDelivered Duty Paid (. . . named place of destination) . . . . . . . . . . . . . . . . . . 26

World Trade Press Illustrated Guide to Incoterms® 2010 3


The World Trade PressIllustrated Guide to Incoterms® 20101

While the terms of sale in international business sound sim-ilar to those used in domestic contracts, they often have dif-ferent meanings. Confusion over these terms can result indiminished profits or lost sales. IncotermsBy the 1920s, international traders had developed a set oftrade terms to describe their rights and obligations with regardto the sale and transport of goods. These terms consisted ofshort abbreviations for lengthy contract provisions. Unfortu-nately, there was no uniform interpretation of these terms.To improve this aspect of international trade, the Interna-tional Chamber of Commerce (ICC) in Paris developed In-coterms (INternational COmmercial TERMS), a set ofuniform rules for the interpretation of terms defining thecosts, risks, and obligations of buyers and sellers in interna-tional transactions. First published in 1936, these rules havebeen periodically revised to account for changing modes oftransport, document delivery, and security. Incoterms 2010In late 2010 the ICC issued its latest revision, “Incoterms®2010.” Please note:1. The new rules enter into force on January 1, 2011.2. Contracts are interpreted by the version of Incoterms

referred to in the contract. Therefore, only a contractthat refers to Incoterms 2010 will be governed by rulesfrom that version.

Incoterms 2010 vs. Incoterms 2000Incoterms 2010 rules incorporate a number of changes fromIncoterms 2000. Here are some key items:1. Incoterms 2000 had 13 rules whereas Incoterms 2010

has 11 rules. For Incoterms 2010, four of the “D” rules:DAF, DES, DEQ, and DDU were dropped, and twonew “D” rules were created: DAT and DAP

2. In Incoterms 2000, a number of rules, such as FOB, es-tablished that the seller “delivers” the goods when they“pass the ship’s rail.” In Incoterms 2010 these rules re-quire that the goods be delivered “on board the vessel.”

3. Incoterms 2000 established four groups of rules: E: Departure, F: Main Carriage Unpaid, C: Main Car-riage Paid, and D: Arrival. Incoterms 2010, however, es-tablishes two classes: 1) rules applicable for all modes oftransport, and 2) rules applicable only for sea and inlandwaterway transport. See the next page for details.

4. Incoterms 2010 gives electronic communications the samestatus as paper communication so long as the parties agree.

5. Incoterms 2010 rules obligate both seller and buyer togive assistance in securing security clearances.

6. Incoterms 2010 now acknowledges the existence of“string sales,” where goods in transit may be sold mul-

tiple times before arrival, by giving the seller the optionto “procure goods shipped.”

Use of IncotermsIncoterms are not laws enacted by governments. Rather,they are rules agreed to by parties to a contract. Also, Incoterms are not implied into contracts for the sale ofgoods. If you desire to use Incoterms, you must specificallyinclude them in your contract. Your contract should expresslyrefer to a specific version of Incoterms. For example:

CIF Oakland, California, USA, Incoterms 2010Incoterms Do . . .Incoterms 2010 may be included in a sales contract if theparties desire the following:1. To complete a sale of goods.2. To indicate each contracting party’s costs, risks, and obli-

gations concerning these aspects of delivery:a. When is the delivery completed?b. How does a party ensure that the other party has metthe standard of performance?c. Which party must obtain requisite licenses and complywith government-imposed import/export formalities?d. What are the modes and terms of carriage?e. What are the delivery terms?f. When is the risk of loss transferred from the seller tothe buyer?g. How will transport and other costs be divided be-tween the parties?h. What notices are the parties required to give to eachother regarding the transport and transfer of the goods?

3. To establish basic terms of transport and delivery in ashort format.

Incoterms Do Not . . .Incoterms 2010 are not sufficient on their own to expressthe full intent of the parties. They do not:1. Apply to con tracts for services.2. Define contractual rights and obligations other than for

delivery.3. Specify details of the transfer, transport, and delivery

of the goods.4. Determine how title to the goods will be transferred.5. Protect a party from risk of loss.6. Define the remedies for breach of contract.Illustrated Guide to Incoterms 2010The World Trade Press Illustrated Guide to Incoterms®2010 was designed to give a graphic representation of thebuyer’s and seller’s risks and costs under each of the 11 In-coterms. The material on each facing page gives a summaryof seller and buyer responsibilities.

1. Incoterms® is a registered trademark of the International Chamber of Commerce (ICC), and is used here for informational purposes only.This illustrated guide is independently authored and published and is not sponsored or endorsed by, or affiliated with the ICC. The fulltext of Incoterms 2010 (117 pages) is contained in ICC publication No. 715, ISBN 978-92-8420080-1. Contact ICC Publishing, Inc.,1212 Avenue of the Americas, 21st Floor, New York, NY 10036 USA, Tel: +[1] (212) 703-5066, www.iccbooksusa.net, or ICC Publish-ing S.A., 38 Cours Albert, 1er, 75008 Paris, France, Tel: +[33] (1) 49 53 28 28, www.iccbooks.com. The World Trade Press Illustrated Guide to Incoterms® 2010 is © 2000-2010 by World Trade Press.

4 World Trade Press Illustrated Guide to Incoterms® 2010


Incoterms GroupsIn the past, Incoterms were arranged into four groups: E (Departure), F (Main carriage unpaid), C (Main carriagepaid), and D (Arrival). Traders, however, were mistakenlypicking ocean transport terms (like FOB) for shipments byair. Incoterms 2010 classifies terms by mode of transport,but the four original groupings remain valid:

Incoterms ClassesAs mentioned, picking an inappropriate term can presentproblems. The pages describing individual Incoterms willassist you in making the right choice, but for the moment,you should know that some terms are applicable for allmodes of transport, while others are applicable only for seaand inland waterway transport.

Incoterms 2010 GroupsGroup EDeparture

EXW EX Works(...named place of delivery)

Group FMainCarriage Unpaid

FCA Free CArrier (...named place of delivery)

FAS Free Alongside Ship(...named port of shipment)

FOB Free On Board(...named port of shipment)

Group CMainCarriage Paid

CFR Cost and FReight(...named port of destination)

CIF Cost Insurance and Freight(...named port of destination)

CPT Carriage Paid To(...named place of destination)

CIP Carriage and Insurance Paid To(...named place of destination)

Group DArrival

DAT Delivered At Terminal(...named terminal at port or place of destination)

DAP Delivered At Place(...named place of destination)

DDP Delivered Duty Paid(...named place of destination)

Incoterms 2010 ClassesAll modes of transport including multimodal

EXW EX Works(...named place of delivery)

FCA Free CArrier(...named place of delivery)

CPT Carriage Paid To(...named place of destination)

CIP Carriage and Insurance Paid To(...named place of destination)

DAT Delivered at Terminal(...named terminal at port or place of destination)

DAP Delivered At Place(...named place of destination)

DDP Delivered Duty Paid(...named place of destination)

Sea and inland waterway transport only

FAS Free Alongside Ship(...named port of shipment)

FOB Free On Board(...named port of shipment)

CFR Cost and FReight(...named port of destination)

CIF Cost Insurance and Freight(...named port of destination)

Definitionsdelivery—In common usage, “delivery” is the act ofdelivering something, while the “place of delivery” is of-ten the buyer’s place of business. In Incoterms 2010,however, “delivery” is the point where “the risk of lossor damage passes from the seller to the buyer.” This isoften the “named port or place” but not necessarily thebuyer’s place of business.pre-carriage—The initial transport of goods from theseller’s premises to the main port or place where main car-riage begins. Usually by truck, rail, or inland waterway.main carriage—The primary transport of goods, gen-erally for the longest part of the journey and generallyfrom one country to another. Usually by sea vessel orby airplane, but also by truck, rail, or inland waterway.onward carriage—Transport from the port, terminal, orplace of arrival in the country of destination to the buyer’spremises. Usually by truck, rail, or inland waterway.

multimodal—Use of more than one mode of transport(road, rail, sea, air) to transport goods (or people) from ori-gin to final destination.carrier—In common usage, a “carrier” is a firm thattransports goods or passengers for hire, rather than sim-ply arranging for such transport. In Incoterms, however,the carrier can be any person or firm who by contract“undertakes to perform or procure” such services. Thebuyer nominates the “carrier” and the seller need onlyaccept the nomination for the term to work.string sale—The sale, and successive resale, of a singleshipment of goods while en route from place of shipmentto final destination. This is common in the commoditytrade, where oil, grain, and ore shipments are sold and re-sold before the vessel arrives in port. A number of Inco-terms now take this practice into account by giving theseller the option to “procure goods already so delivered.”



Notes on Incoterms1. Underlying Contract—Incoterms were designed to

be used within the context of a written contract for thesale of goods (not services). Incoterms, therefore, re-fer to the contract of sale, rather than the contract ofcarriage of the goods. Buyers and sellers should spec-ify that their contract be governed by Incoterms 2010.

2. Two Components—Each Incoterm has two compo-nents: the term name, and a named place, port, or termi-nal. For example: “EXW, Seller’s warehouse located at___.” Or, “DDP, Buyer’s warehouse located at ___.” AnIncoterm is incomplete without both components.

3. Precise Point of Delivery—In addition to a specific“named port,” “place,” or “terminal,” it may be neces-sary to name a precise “point of delivery.” For exam-ple, the original terms of sale may state “CFR Port ofRotterdam.” The Port of Rotterdam, however, ishuge. The buyer who prefers a particular point withinthe port should name the specific point in the salescontract and in the trade term. This may be an impor-tant issue in situations where the buyer is responsiblefor unloading, storage, and other charges once thegoods have been made available at the named place.In some cases it may not be possible for the buyer toname the precise point of delivery at the time of con-tract. However, if the buyer does not do so in a timelymanner, the seller may make delivery within a rangeof places that is within the terms of the contract, butinconvenient for the buyer.

4. EXW and FCA—The buyer who purchases on ExWorks (EXW) or Free Carrier (FCA) terms will needto arrange for the contract of carriage. Also, since theseller will not receive a bill of lading, using a letter ofcredit requiring a bill of lading will not be possible.

5. EDI: Electronic Data Interchange—It is increas-ingly common for sellers to prepare and transmit doc-uments electronically. Incoterms provide for EDI andelectronic documents so long as buyers and sellersagree on their use in the sales contract.

6. Insurable Interest—In most cases, neither the buyernor the seller is obligated to provide insurance. In fact,only two Incoterms mention insurance: CIP and CIF.In both cases the seller is obligated to secure insur-ance for the buyer, but only for minimum coverage.The seller and buyer, however, may have insurableinterest in the goods, and prudence may dictate pur-chase of insurance coverage or additional insurancecoverage.

7. Customs of the Port or Trade—Incoterms are anattempt to standardize trade terms for all nations andall trades. However, different ports and differenttrades have their own customs and practices. It is bestif such practices are specified in the sales contract.

8. Export/Import Customs Clearance—It is usuallydesirable that export customs formalities be handled bythe seller and import customs formalities be handled bythe buyer. However, some trade terms (such as EXW)require that the buyer handle export formalities, whileothers, such as DDP, require that the seller handle im-port formalities. In each case, the buyer and seller will

have to assume risks and costs associated with exportand import formalities and duties. In some cases, for-eign exporters may not be able to obtain import licensesin the country of import. Parties should research thepertinent local trade laws before using such terms.

9. Variants of Incoterms (Added Wording)—Incoterms give no guidance regarding the addition ofwords to individual terms. In practice, the seller andbuyer may agree to added wording. For example, if theseller agrees to DDP terms, agreeing to pay for customsformalities and import duties but not for VAT (valueadded tax), the term “DDP VAT Unpaid” may be used.Adding wording to an Incoterm, however, may present arisk if the wording contradicts the fundamental meaningof the Incoterm itself. For example, if the seller agrees to“CIF, seller responsible for unloading the aircraft,” thereis an inherent problem, because CIF can only be used fortransport by sea or inland waterway. Use additionalwording only if you are certain that it is consistent withthe meaning of the term used.

10. Packing—It is the responsibility of the seller to providepackaging unless the goods shipped are conventionallyshipped unpackaged (commodities such as oil or grain). Inmost situations it is best if the buyer and seller agree in thesales contract on the type and extent of packing required.However, it may not be possible to know beforehand thetype or duration of transport. As a result, it is the responsi-bility of the seller to provide for safe and appropriate pack-aging, but only to the extent that the buyer has made thecircumstances of the transport known beforehand. If theseller is responsible for packing goods in an ocean or airfreight container, their responsibility includes stuffing thecontainer properly to withstand shipment.

11. Inspection—There are several issues related to inspec-tions: a) the seller is responsible for costs of inspection tomake certain the quantity and quality of the shipment arein conformity with the sales contract; b) pre-shipment in-spections as required by the export authority are the re-sponsibility of the party responsible for exportformalities; c) import inspections as required by the im-port authority are the responsibility of the party responsi-ble for import formalities; and d) third-party inspectionsfor independent verification of quality and quantity (if re-quired) are generally the responsibility of the buyer. Thebuyer may require such an inspection and inspectiondocument as a condition of payment.

12. Passing of Risks and Costs—In all E, F, and D terms,both risks and costs pass from seller to buyer at the namedplace, port, or terminal. In all C terms, however, the trans-fer of risks occurs at a different point than the transfer ofcosts. Refer to each term for details.

13. “Carrier”—In common usage, a carrier is a firm thattransports goods or passengers for hire, rather thansimply arranging for such transport. In Incoterms,however, carrier is the “party with whom carriage iscontracted” and can be any person or firm. In practice,the buyer nominates the “carrier” and the seller needonly accept the nomination. It is recommended thatthe carrier be named in the sales contract.

ASUS

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EXW

Ex W

orks

(. .

. nam

ed p

lace

of d

eliv

ery)

EXW

, Ex

Wor

ks (.

. . n

amed

pla

ce o

f del

iver

y)In

Ex

Wor

ks,

the

selle

r/exp

orte

r/man

ufac

ture

r m

erel

ym

akes

the

good

s av

aila

ble

to th

e bu

yer

at th

e se

ller’s

“nam

ed p

lace

of d

eliv

ery,”

whi

ch is

com

mon

ly, b

ut n

otne

cess

arily

, the

selle

r’s p

lace

of b

usin

ess.

With

EX

W, t

he s

eller

has

no

resp

onsib

ility

to lo

ad th

ego

ods o

nto

a tru

ck o

r oth

er tr

ansp

ort v

ehicl

e or t

o cle

ar th

ego

ods

for e

xpor

t. Th

is tra

de te

rm p

laces

the

grea

test r

e-sp

onsib

ility

on

the b

uyer

and

min

imum

obl

igati

ons o

n th

ese

ller.

The p

arties

to th

e tran

sacti

on, h

owev

er, m

ay st

ipul

ate th

at th

ese

ller b

e res

pons

ible

for l

oadi

ng th

e goo

ds on

to a

trans

port

ve-

hicle

at th

e risk

and

cost

of th

e buy

er. S

uch

a stip

ulatio

n is

ava

riant

and m

ust b

e mad

e with

in the

cont

ract o

f sale

.W

hen u

sing t

he F

CA te

rm, it

is ad

visa

ble t

o clea

rly sp

ecify

in

the c

ontra

cts of

sale

and c

arriag

e the

prec

ise po

int o

f deli

very.

The

EXW

term

is g

ener

ally

not

reco

mm

ende

d fo

r int

er-

natio

nal t

rade

tran

sact

ions

, as

load

ing

the

good

s at

the

selle

r’s n

amed

pla

ce an

d ha

ndlin

g ex

port

form

aliti

es u

su-

ally

pla

ces t

oo m

uch

of a

burd

en u

pon

the b

uyer

.If

the

buye

r can

not h

andl

e lo

adin

g th

e go

ods

or e

xpor

tfo

rmal

ities

, the

EX

W te

rm sh

ould

not

be

used

. In

such

aca

se, F

CA is

reco

mm

ende

d.Th

e EX

W te

rm is

ofte

n us

ed w

hen

mak

ing

an in

itial

quo

-ta

tion

for t

he s

ale

of g

oods

. It r

epre

sent

s th

e co

st of

the

good

s with

out a

ny o

ther

costs

incl

uded

.Th

e EX

W te

rm is

com

mon

ly u

sed

in c

ourie

r shi

pmen

tsw

hen

the

cour

ier

pick

s up

the

shi

pmen

t fro

m c

lient

’spr

emise

s and

load

s cou

rier’s

ow

n tru

ck.

Paym

ent t

erm

s fo

r Ex

Wor

ks tr

ansa

ctio

ns a

re g

ener

ally

cash

in ad

vanc

e and

ope

n ac

coun

t.

Exa

mp

les

EXW

, ABC

Fac

tory

, Ful

l Add

ress

, Par

is, F

ranc

eEX

W, X

YZ

Prin

ting

Plan

t, Fu

ll A

ddre

ss, S

inga

pore

Mo

des

of

Tra

nsp

ort

Air

—Ye

sR

ail—

Yes

Roa

d—Ye

sSe

a—Ye

sIn

land

Wat

erw

ay—

Yes

Mul

timod

al—

Yes

Selle

r/Ex

porte

rN

amed

Pla

ce

Exp

ort

Doc

umen

ts,

Form

aliti

es,

and

Fees

Pre

-Car

riage

to

Nam

ed

Pla

ce, N

ot

Unl

oade

d

Del

iver

yat

Nam

ed

Pla

ce/P

ort,

Unl

oade

d

Load

ing

at N

amed

Pla

ce/P

ort

of S

hipm

ent

Load

edO

n B

oard

Shi

p or

Vess

el

Tran

spor

t by

Air,

Rai

l, R

oad,

W

ater

, or

Mul

timod

al

On

Boa

rd

Shi

p or

Ve

ssel

, Not

U

nloa

ded

Dis

char

ging

(u

nloa

ding

) at

Nam

ed P

lace

/Por

t of

Des

tinat

ion

Del

iver

y at

N

amed

Pla

ce/

Term

inal

Onw

ard

Car

riage

to

Nam

ed P

lace

, N

ot U

nloa

ded

Impo

rt D

ocum

ents

, Fo

rmal

ities

, an

d D

utie

s

Buy

er/

Impo

rter

Nam

ed P

lace

, U

nloa

ded

CA

RR

IAG

E

RIS

KS

CO

STS

SELL

ERB

UYE

R

ASUS

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ASUS

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EXW

Ex W

orks

(. .

. nam

ed p

lace

of d

eliv

ery)

Inco

term

Cat

egor

yEX

W sp

ecifi

es th

at th

e se

ller/e

xpor

ter/m

anuf

actu

rer m

erely

mak

es th

e go

ods a

vaila

ble

to th

e bu

yer,

not c

leare

d fo

r ex-

port,

at th

e sell

er’s

“nam

ed p

lace o

f deli

very

,” w

hich

is co

m-

mon

ly, bu

t not

nece

ssar

ily, th

e sell

er’s

plac

e of b

usin

ess.

Not

e: D

ocum

ents

may

be

pape

r or e

lect

roni

c, as

cus

tom

-ar

y or

as ag

reed

to b

y th

e par

ties t

o th

e tra

nsac

tion.

Mod

es o

f Tra

nspo

rt C

over

edA

ll m

odes

of t

rans

port

inclu

ding

mul

timod

al.Se

ller’s

Res

pons

ibili

ties

(sum

mar

y)1.

Goo

ds—

Prov

ide t

he g

oods

, com

mer

cial

invo

ice,

and

othe

r doc

umen

tatio

n as

requ

ired

by th

e sal

es co

ntra

ct.

2.Li

cens

es,

Secu

rity

, an

d C

usto

ms

Form

aliti

es—

Prov

ide

the

buye

r, at

the

buye

r’s ri

sk a

nd c

ost,

assis

-ta

nce

in s

ecur

ing

any

licen

se, d

ocum

ents,

aut

horiz

a-tio

ns, a

nd se

curit

y cl

eara

nce r

equi

red

for t

he ex

port

ofth

e goo

ds.

3.C

arri

age a

nd In

sura

nce—

The s

elle

r has

no

oblig

a-tio

n to

pro

vide

for c

arria

ge o

f goo

ds o

r for

insu

ranc

e. Pr

ovid

e th

e bu

yer,

at th

e bu

yer’s

requ

est a

nd c

ost (

ifan

y), i

nfor

mat

ion

requ

ired

to o

btai

n in

sura

nce.

4.D

eliv

ery—

Mak

e th

e go

ods

avail

able

to th

e bu

yer a

tth

e nam

ed p

lace a

nd p

oint

of d

elive

ry at

the t

ime s

tipu-

lated

in th

e sa

les c

ontra

ct. If

the

buye

r has

not

stip

u-lat

ed a

spec

ific p

oint

at th

e nam

ed p

lace o

f deli

very

, the

selle

r may

pick

one

that

suits

selle

r’s p

urpo

ses.

5.R

isk T

rans

fer—

Ass

ume

all ri

sks o

f los

s or d

amag

eto

the g

oods

unt

il th

ey h

ave b

een

mad

e ava

ilabl

e to

the

buye

r at

the

nam

ed p

lace

of d

elive

ry, a

t the

agr

eed-

upon

tim

e stip

ulate

d in

the s

ales c

ontra

ct.6.

Cos

ts—

Pay

all c

osts

until

the g

oods

hav

e bee

n m

ade

avai

labl

e to

the b

uyer

at th

e nam

ed p

lace

of d

eliv

ery.

7.N

otic

e to

the

Buy

er—

Prov

ide

notic

e th

at e

nabl

esth

e buy

er to

take

del

iver

y of

the g

oods

.8.

Del

iver

y an

d Tr

ansp

ort D

ocum

ent(s

)—Th

e se

ller

has n

o ob

ligat

ion

to p

rovi

de th

e buy

er w

ith a

deliv

ery

docu

men

t.9.

Che

ckin

g, P

acki

ng, M

arki

ng—

Pay

all co

sts as

soci-

ated

with

chec

king

the q

ualit

y an

d qu

antit

y of

the g

oods

to be

in co

nfor

mity

with

the s

ales c

ontra

ct.

Pack

age t

he g

oods

, unl

ess t

he g

oods

are c

onve

ntio

nally

sold

unp

acka

ged.

Pack

age t

he g

oods

as th

e sell

er d

eem

sap

prop

riate

for t

rans

port,

unles

s the

buye

r has

give

n spe

-cif

ic re

quire

men

ts pr

ior t

o th

e fin

aliza

tion

of th

e sa

lesco

ntra

ct. P

rovi

de m

arki

ng ap

prop

riate

to th

e pac

kagi

ng.

10.O

ther

—Ti

mely

prov

ide t

he bu

yer, a

t the b

uyer

’s req

uest

and c

ost, w

ith as

sistan

ce in

secu

ring i

nfor

mati

on an

d doc

-um

ents,

inclu

ding

secu

rity i

nfor

mati

on, th

e buy

er req

uires

for e

xpor

t, tra

nspo

rt, an

d im

port

of th

e goo

ds to

the f

inal

desti

natio

n.

Buy

er’s

Res

pons

ibili

ties

(sum

mar

y)1.

Paym

ent—

Pay

for t

he g

oods

as p

rovi

ded

in th

e sal

esco

ntra

ct.

2.Li

cens

es,

Secu

rity

, an

d C

usto

ms

Form

aliti

es—

Obt

ain

any

expo

rt an

d im

port

licen

ses

or a

utho

riza-

tions

, and

han

dle

all e

xpor

t and

impo

rt cu

stom

s fo

r-m

aliti

es.

3.C

arri

age

and

Insu

ranc

e—Bu

yer h

as n

o ob

ligat

ion

to se

ller f

or ca

rriag

e or i

nsur

ance

.Pr

ovid

e fo

r ca

rriag

e of

the

goo

ds f

rom

the

nam

edpl

ace o

f del

iver

y to

the b

uyer

’s de

stina

tion.

4.Ta

king

Del

iver

y—Ta

ke d

eliv

ery

of t

he g

oods

as

prov

ided

in th

e sal

es co

ntra

ct.

5.R

isk T

rans

fer—

Ass

ume

all r

isk o

f los

s or

dam

age

from

the

time

the

good

s ha

ve b

een

deliv

ered

(mad

eav

aila

ble)

at t

he n

amed

pla

ce o

f del

iver

y as

pro

vide

din

the

sale

s con

tract

. Ass

ume

all r

isk o

f los

s or d

am-

age i

f the

goo

ds ar

e not

pic

ked

up a

t the

agr

eed-

upon

time a

nd p

lace

.6.

Cos

ts—

Pay

all c

osts

from

the

time

the

good

s ha

vebe

en d

eliv

ered

(mad

e ava

ilabl

e) at

the n

amed

pla

ce o

fde

liver

y. Pa

y al

l cos

ts re

late

d to

carri

age o

f the

goo

dsfro

m th

e na

med

pla

ce o

f del

iver

y to

the

buye

r’s fi

nal

desti

natio

n. P

ay al

l cos

ts re

sulti

ng fr

om fa

ilure

to ta

kede

liver

y at

the n

amed

pla

ce an

d tim

e. Pa

y al

l cos

ts re

-la

ting

to e

xpor

t and

impo

rt fo

rmal

ities

, dut

ies,

fees

,an

d ta

xes,

and

othe

r cha

rges

incl

udin

g tra

nssh

ipm

ent.

7.N

otic

e to

Sel

ler—

If, a

ccor

ding

to th

e sa

les c

ontra

ct,

the b

uyer

is en

title

d to

spec

ify a

time f

or ta

king

del

iv-

ery

or th

e po

int o

f tak

ing

deliv

ery

at th

e na

med

pla

ceof

del

iver

y, to

giv

e sel

ler s

uffic

ient

not

ice.

8.Pr

oof o

f Del

iver

y—Pr

ovid

e the

selle

r with

evid

ence

of ta

king

del

iver

y.9.

Insp

ectio

n(s)

—Pa

y fo

r pre

-shi

pmen

t ins

pect

ions

in-

clud

ing

thos

e req

uire

d by

the c

ount

ry o

f exp

ort.

10.O

ther

—Ti

mely

advi

se th

e sell

er o

f any

secu

rity-

relat

edda

ta re

quire

men

ts. R

eimbu

rse th

e sell

er fo

r sell

er’s

costs

relat

ed to

sec

urin

g in

form

ation

or

docu

men

tatio

n, in

-clu

ding

secu

rity

info

rmati

on, t

he b

uyer

requ

ires f

or e

x-po

rt an

d im

port

form

alitie

s, se

curit

y cle

aran

ce,

and

trans

port

of th

e goo

ds to

the f

inal

desti

natio

n.



FCA

Free

Car

rier (

. . .

nam

ed p

lace

of d

eliv

ery)

FCA

, Fre

e C

arrie

r (. .

. na

med

pla

ce o

f del

iver

y)In

Fre

e Ca

rrier

, the

sel

ler/e

xpor

ter/m

anuf

actu

rer

clea

rsth

e go

ods

for

expo

rt an

d de

liver

s th

em t

o th

e ca

rrier

spec

ified

by

the b

uyer

at th

e “na

med

pla

ce o

f del

iver

y.”If

the n

amed

plac

e of d

elive

ry is

the s

eller

’s pl

ace o

f bus

i-ne

ss, t

he s

eller

is re

spon

sible

for l

oadi

ng th

e go

ods

onto

the t

rans

port

vehi

cle. I

f the

nam

ed p

lace i

s any

oth

er lo

ca-

tion,

such

as th

e loa

ding

doc

k of

the c

arrie

r, th

e sell

er is

not

resp

onsib

le fo

r unl

oadi

ng.

Whe

n usin

g the

FCA

term

, it is

advis

able

to cl

early

spec

ify in

the c

ontra

cts of

sale

and c

arriag

e the

prec

ise po

int o

f deli

very.

“Car

rier”

has

a sp

ecial

mea

ning

. Tec

hnica

lly, a

car

rier i

s afir

m th

at its

elf tr

ansp

orts

good

s or p

asse

nger

s for

hire

, rath

erth

an s

impl

y ar

rang

ing

for s

uch

trans

port.

Exa

mpl

es a

re a

ship

ping

line,

airlin

e, tru

ckin

g firm

, or r

ailw

ay.

In th

e FC

A te

rm, h

owev

er, t

he c

arrie

r can

be

any

perso

nw

ho b

y co

ntra

ct “u

nder

takes

to p

erfo

rm o

r pro

cure

” su

chse

rvice

s by

any

of th

e ab

ove

meth

ods o

f tra

nspo

rt in

clud-

ing

mul

timod

al. T

here

fore

, a p

erso

n, su

ch as

a fre

ight

for-

war

der,

can

act a

s a

“car

rier.”

With

the

FCA

term

, the

buye

r nom

inate

s the

“car

rier,”

and

the s

eller

nee

d on

ly ac

-ce

pt th

e nom

inati

on fo

r the

term

to w

ork.

The F

CA te

rm m

ay b

e use

d fo

r any

mod

e of t

rans

port

in-

clud

ing

mul

timod

al.

With

FCA

, the

nam

ed p

lace

of d

eliv

ery

is do

mes

tic to

the

buye

r.Th

e FCA

term

is o

ften

used

whe

n m

akin

g an

initi

al q

uo-

tatio

n fo

r the

sale

of g

oods

.

Exa

mp

les

FCA

, ABC

Shi

ppin

g, D

oor 4

, Ful

l Add

ress

, Ham

burg

,G

erm

any

FCA

, XY

Z A

irlin

es C

argo

Ter

min

al, S

an F

ranc

isco

In-

tern

atio

nal A

irpor

t (SF

O),

USA

Mo

des

of

Tra

nsp

ort

Air

—Ye

sR

ail—

Yes

Roa

d—Ye

sSe

a—Ye

sIn

land

Wat

erw

ay—

Yes

Mul

timod

al—

Yes

Selle

r/Ex

porte

rN

amed

Pla

ce

Exp

ort

Doc

umen

ts,

Form

aliti

es,

and

Fees

Pre

-Car

riage

to

Nam

ed

Pla

ce, N

ot

Unl

oade

d

Del

iver

yat

Nam

ed

Pla

ce/P

ort,

Unl

oade

d

Load

ing

at N

amed

Pla

ce/P

ort

of S

hipm

ent

Load

edO

n B

oard

Shi

p or

Vess

el

Tran

spor

t by

Air,

Rai

l, R

oad,

W

ater

, or

Mul

timod

al

On

Boa

rd

Shi

p or

Ve

ssel

, Not

U

nloa

ded

Dis

char

ging

(u

nloa

ding

) at

Nam

ed P

lace

/Por

t of

Des

tinat

ion

Del

iver

y at

N

amed

Pla

ce/

Term

inal

Onw

ard

Car

riage

to

Nam

ed P

lace

, N

ot U

nloa

ded

Impo

rt D

ocum

ents

, Fo

rmal

ities

, an

d D

utie

s

Buy

er/

Impo

rter

Nam

ed P

lace

, U

nloa

ded

CA

RR

IAG

E

RIS

KS

CO

STS

SELL

ERB

UYE

R

ASUS

Highlight

ASUS

Highlight

ASUS

Highlight

ASUS

Highlight

ASUS

Highlight

ASUS

Highlight



FCA

Free

Car

rier (

. . .

nam

ed p

lace

of d

eliv

ery)

Inco

term

Cat

egor

yFC

A is

an

“F”

term

spe

cify

ing

that

the

selle

r/exp

orte

r/m

anuf

actu

rer

is re

spon

sible

for

del

iver

ing

the

good

s to

the

carri

er, e

xpor

t cle

ared

, at t

he “

nam

ed p

lace

of d

eliv

-er

y,” b

ut d

oes n

ot b

ear r

isk o

r cos

ts af

terw

ards

.N

ote:

Doc

umen

ts m

ay b

e pa

per o

r ele

ctro

nic,

as c

usto

m-

ary

or as

agre

ed to

by

the p

artie

s to

the t

rans

actio

n.M

odes

of T

rans

port

Cov

ered

All

mod

es o

f tra

nspo

rt in

cludi

ng m

ultim

odal.

Selle

r’s R

espo

nsib

ilitie

s (s

umm

ary)

1.G

oods

—Pr

ovid

e the

goo

ds, c

omm

erci

al in

voic

e, an

dot

her d

ocum

enta

tion

as re

quire

d by

the s

ales

cont

ract

.2.

Lice

nses

, Se

curi

ty,

and

Cus

tom

s Fo

rmal

ities

—O

btai

n at

ow

n ris

k an

d co

st al

l req

uire

d ex

port

li-ce

nses

, doc

umen

ts, a

nd a

utho

rizat

ions

and

car

ry o

utex

port

form

aliti

es an

d pr

oced

ures

.3.

Car

riag

e and

Insu

ranc

e—Th

e sel

ler h

as n

o ob

liga-

tion

to p

rovi

de fo

r car

riage

of g

oods

or f

or in

sura

nce.

At t

he re

ques

t of t

he b

uyer

, the

selle

r may

cont

ract

for

carri

age o

n sta

ndar

d in

dustr

y te

rms a

t the

buy

er’s

risk

and

cost.

Pr

ovid

e in

form

atio

n to

ena

ble

the

buye

r to

obt

ain

insu

ranc

e.4.

Del

iver

y—D

elive

r th

e go

ods

to t

he c

arrie

r at

the

nam

ed p

lace

of d

elive

ry a

t the

tim

e sti

pulat

ed in

the

sales

con

tract.

If

the

nam

ed p

lace

of d

elive

ry is

the

selle

r’s p

lace

of b

usin

ess,

the

selle

r is

resp

onsib

le fo

rlo

adin

g th

e go

ods

onto

the

tra

nspo

rt ve

hicle

. If

the

nam

ed p

lace

is an

y ot

her l

ocati

on, s

uch

as th

e lo

adin

gdo

ck o

f the

car

rier,

the

selle

r is n

ot re

spon

sible

for u

n-lo

adin

g. If

the

buye

r has

not

stip

ulate

d a s

pecif

ic po

int

at th

e nam

ed p

lace o

f deli

very

, the

selle

r may

pick

one

that

suits

selle

r’s p

urpo

ses.

5.R

isk T

rans

fer—

Ass

ume a

ll ris

k of

loss

or d

amag

e to

the

good

s unt

il th

ey h

ave

been

deli

vere

d to

the

carri

erat

the n

amed

plac

e of d

elive

ry, w

ithin

the a

gree

d-up

on

time s

tipul

ated

in th

e sale

s con

tract.

6.C

osts

—Pa

y al

l cos

ts un

til th

e goo

ds h

ave b

een

deliv

-er

ed to

the c

arrie

r at t

he n

amed

pla

ce o

f del

iver

y. Pa

yal

l cos

ts re

latin

g to

expo

rt, in

clud

ing

custo

ms f

orm

al-

ities

, dut

ies,

and

taxe

s.7.

Not

ice

to th

e Bu

yer—

At b

uyer

’s ris

k an

d co

st, p

ro-

vide

not

ice

to th

e bu

yer t

hat t

he g

oods

hav

e be

en d

e-liv

ered

to th

e ca

rrier

, or t

hat t

he c

arrie

r did

not

take

poss

essio

n of

the g

oods

at th

e agr

eed-

upon

tim

e.8.

Del

iver

y an

d Tr

ansp

ort

Doc

umen

t(s)—

Prov

ide

the

buye

r with

a p

roof

of d

eliv

ery.

At t

he b

uyer

’s re

-qu

est,

if th

e pr

oof o

f del

iver

y is

not a

tran

spor

t doc

u-m

ent,

help

the b

uyer

obt

ain

a tra

nspo

rt do

cum

ent.

9.C

heck

ing,

Pac

king

, Mar

king

—Pa

y all

costs

asso

ci-ate

d w

ith ch

ecki

ng th

e qua

lity

and

quan

tity

of th

e goo

dsto

be i

n co

nfor

mity

with

the s

ales c

ontra

ct. P

rovi

de p

re-

ship

men

t ins

pecti

ons a

s req

uire

d fo

r exp

ort f

orm

alitie

s.Pa

ckag

e the

goo

ds, u

nles

s the

goo

ds ar

e con

vent

iona

llyso

ld u

npac

kage

d. Pa

ckag

e the

goo

ds as

the s

eller

dee

ms

appr

opria

te fo

r tra

nspo

rt, un

less t

he bu

yer h

as gi

ven s

pe-

cific

requ

irem

ents

prio

r to

the

finali

zatio

n of

the

sales

cont

ract.

Pro

vide

mar

king

appr

opria

te to

the p

acka

ging

.10

.Oth

er—

Tim

ely pr

ovid

e the

buye

r, at th

e buy

er’s

reque

stan

d co

st, a

ssist

ance

in s

ecur

ing in

form

ation

and

doc

u-m

ents,

inclu

ding

secu

rity

infor

mati

on, t

he b

uyer

requ

ires

for t

ransp

ort a

nd im

port

of th

e goo

ds to

the f

inal

desti

na-

tion.

Reim

burse

the b

uyer

for b

uyer

’s co

sts re

lated

to se

-cu

ring

info

rmati

on a

nd d

ocum

ents,

inc

ludi

ng s

ecur

ityin

form

ation

the

selle

r req

uires

for e

xpor

t for

mali

ties a

ndse

curit

y clea

rance

of th

e goo

ds.

Buy

er’s

Res

pons

ibili

ties

(sum

mar

y)1.

Paym

ent—

Pay

for t

he g

oods

as p

rovi

ded

in th

e sal

esco

ntra

ct.

2.Li

cens

es,

Secu

rity

, an

d C

usto

ms

Form

aliti

es—

Obt

ain

any

impo

rt lic

ense

s or a

utho

rizat

ions

and

han-

dle a

ll im

port

custo

ms f

orm

aliti

es.

3.C

arri

age

and

Insu

ranc

e—Pr

ovid

e fo

r ca

rriag

e of

the g

oods

from

the n

amed

pla

ce o

f del

iver

y. Bu

yer h

as n

o ob

ligat

ion

to th

e sel

ler f

or in

sura

nce.

4.Ta

king

Del

iver

y—Ta

ke d

eliv

ery

of t

he g

oods

as

prov

ided

in th

e sal

es co

ntra

ct.

5.R

isk T

rans

fer—

Ass

ume

all r

isk o

f los

s or

dam

age

from

the

time

the

good

s ha

ve b

een

deliv

ered

to th

eca

rrier

at th

e nam

ed p

lace

of d

eliv

ery.

Ass

ume a

ll ris

kof

loss

or d

amag

e and

oth

er co

sts if

the b

uyer

’s ca

rrier

fails

to

take

del

iver

y at

the

agr

eed-

upon

tim

e an

dpl

ace.

6.C

osts

—Pa

y al

l cos

ts fo

r car

riage

and

insu

ranc

e fro

mth

e tim

e th

e go

ods h

ave

been

del

iver

ed to

the

carri

erat

the

nam

ed p

lace

of d

eliv

ery.

Pay

all c

osts

resu

lting

from

failu

re to

take

del

iver

y at

the

nam

ed p

lace

and

time.

Pay

all c

osts

rela

ting

to im

port

form

aliti

es, d

u-tie

s, fe

es,

and

taxe

s, an

d ot

her

char

ges

incl

udin

gtra

nssh

ipm

ent.

7.N

otic

e to

Sel

ler—

Giv

e su

ffici

ent n

otic

e to

the

selle

rof

the n

ame o

f the

carri

er, t

he d

eliv

ery

poin

t, th

e tim

eor

per

iod

for d

eliv

ery,

and

the m

ode o

f tra

nspo

rt.8.

Proo

f of D

eliv

ery—

Acc

ept t

he se

ller’s

del

iver

y do

c-um

ent i

f it i

s in

conf

orm

ity w

ith th

e sal

es co

ntra

ct.

9.In

spec

tion(

s)—

Pay

for p

re-s

hipm

ent i

nspe

ctio

ns u

n-le

ss su

ch is

requ

ired

by th

e cou

ntry

of e

xpor

t.10

.Oth

er—

Tim

ely ad

vise

the s

eller

of a

ny se

curit

y-re

lated

data

requ

irem

ents.

Reim

burse

the s

eller

for s

eller

’s co

stsre

lated

to s

ecur

ing

info

rmati

on o

r do

cum

entat

ion,

in-

cludi

ng se

curit

y in

form

ation

, tha

t the

buy

er re

quire

s for

impo

rt fo

rmali

ties,

secu

rity

clear

ance

, and

tran

spor

t of

the g

oods

to th

e fin

al de

stina

tion.

Tim

ely p

rovi

de th

e sell

er, at

the s

eller

’s re

ques

t and

cost,

with

any

doc

umen

ts an

d in

form

ation

requ

ired

for e

x-po

rt, tr

ansp

ort, a

nd se

curit

y cle

aran

ce o

f the

good

s to

the

nam

ed pl

ace o

f deli

very

.



FAS

Free

Alo

ngsi

de S

hip

(. . .

nam

ed p

ort o

f shi

pmen

t)

FAS,

Fre

e A

long

side

Shi

p (.

. . n

amed

por

t of s

hipm

ent)

In F

ree

Alo

ngsid

e Sh

ip, t

he se

ller/e

xpor

ter/m

anuf

actu

rer

clea

rs th

e goo

ds fo

r exp

ort a

nd p

lace

s the

m al

ongs

ide t

hesh

ip (

on a

doc

k or

bar

ge)

at th

e “n

amed

por

t of

ship

-m

ent.”

Whe

n us

ing

the F

AS

term

, it i

s adv

isabl

e to

clear

ly sp

ecify

in th

e con

tract

of sa

le, an

d in

cont

racts

of c

arria

ge, n

ot o

nly

the

nam

ed p

ort o

f shi

pmen

t, bu

t also

the

prec

ise lo

adin

gpo

int a

t or w

ithin

the n

amed

por

t of s

hipm

ent.

This

is pa

r-tic

ular

ly th

e ca

se w

hen

the

nam

ed p

ort o

f sh

ipm

ent i

sla

rge a

nd o

ptio

ns ab

ound

for d

eliv

ery

poin

ts.W

ith F

AS,

the

selle

r has

the

optio

n to

del

iver

the

good

sal

ongs

ide t

he sh

ip, o

r to

“pro

cure

goo

ds al

read

y so

del

iv-

ered

.” Th

is is

a re

fere

nce

to s

o-ca

lled

“stri

ng s

ales

”w

here

a s

ingl

e sh

ipm

ent m

ight

be

reso

ld m

ultip

le ti

mes

durin

g tra

nspo

rt, as

is co

mm

on in

the c

omm

odity

trad

e.Th

e FA

S te

rm is

com

mon

ly u

sed

in th

e sal

e of b

ulk

com

-m

odity

carg

o su

ch as

oil,

gra

ins,

and

ore.

If th

e sh

ipm

ent i

s co

ntai

neriz

ed o

r to

be

cont

aine

rized

,co

mm

on p

ract

ice

is to

del

iver

the s

hipm

ent t

o th

e ca

rrier

at a

term

inal

and

not

alo

ngsid

e a

ship

. In

such

situ

atio

ns,

the F

CA te

rm is

reco

mm

ende

d.Th

e nam

ed p

lace i

n FA

S is

a por

t, an

d th

eref

ore t

he te

rm is

used

only

for o

cean

or in

land w

aterw

ay tr

ansp

ort.

With

FA

S, th

e nam

ed p

ort o

f shi

pmen

t is d

omes

tic to

the

selle

r.U

sual

pay

men

t ter

ms f

or FA

S tra

nsac

tions

are c

ash

in ad

-va

nce

and

open

acc

ount

, but

let

ters

of

cred

it ar

e al

sous

ed.

Exa

mp

les

FAS,

ABC

Shi

ppin

g Li

ne,

Doc

k #2

, Po

rt El

izab

eth,

Sout

h A

frica

FAS,

XY

Z Sh

ippi

ng L

ine,

Qua

y #4

, Le H

avre

, Fra

nce

Mo

des

of

Tra

nsp

ort

Air

—N

oR

ail—

No

Roa

d—N

oSe

a—Ye

sIn

land

Wat

erw

ay—

Yes

Mul

timod

al—

No

Selle

r/Ex

porte

rN

amed

Pla

ce

Exp

ort

Doc

umen

ts,

Form

aliti

es,

and

Fees

Pre

-Car

riage

to

Nam

ed

Pla

ce, N

ot

Unl

oade

d

Del

iver

yat

Nam

ed

Pla

ce/P

ort,

Unl

oade

d

Load

ing

at N

amed

Pla

ce/P

ort

of S

hipm

ent

Load

edO

n B

oard

Shi

p or

Vess

el

Tran

spor

t by

Sea

or In

land

W

ater

way

Onl

y

On

Boa

rd

Shi

p or

Ve

ssel

, Not

U

nloa

ded

Dis

char

ging

(u

nloa

ding

) at

Nam

ed P

lace

/Por

t of

Des

tinat

ion

Del

iver

y at

N

amed

Pla

ce/

Term

inal

Onw

ard

Car

riage

to

Nam

ed P

lace

, N

ot U

nloa

ded

Impo

rt D

ocum

ents

, Fo

rmal

ities

, an

d D

utie

s

Buy

er/

Impo

rter

Nam

ed P

lace

, U

nloa

ded

CA

RR

IAG

E

RIS

KS

CO

STS

SELL

ERB

UYE

R

ASUS

Highlight

ASUS

Highlight

ASUS

Highlight

ASUS

Highlight

ASUS

Highlight

ASUS

Highlight



FAS

Free

Alo

ngsi

de S

hip

(. . .

nam

ed p

ort o

f shi

pmen

t)In

cote

rm C

ateg

ory

FAS

is an

“F” t

erm

spec

ifyin

g th

at th

e sell

er/ex

porte

r is r

e-sp

onsib

le fo

r deli

verin

g th

e go

ods,

expo

rt cle

ared

, alo

ng-

side t

he sh

ip, b

ut d

oes n

ot b

ear r

isk o

r cos

ts af

terw

ards

.N

ote:

Doc

umen

ts m

ay b

e pa

per o

r ele

ctro

nic,

as c

usto

m-

ary

or as

agre

ed to

by

the p

artie

s to

the t

rans

actio

n.M

odes

of T

rans

port

Cov

ered

Use

d on

ly fo

r oce

an o

r inl

and

wate

rway

tran

spor

t.Se

ller’s

Res

pons

ibili

ties

(sum

mar

y)1.

Goo

ds—

Prov

ide t

he g

oods

, com

mer

cial

invo

ice,

and

othe

r doc

umen

tatio

n as

requ

ired

by th

e sal

es co

ntra

ct.

2.Li

cens

es,

Secu

rity

, an

d C

usto

ms

Form

aliti

es—

Obt

ain

at o

wn

risk

and

cost

all r

equi

red

expo

rt li-

cens

es, d

ocum

ents,

and

aut

horiz

atio

ns a

nd c

arry

out

expo

rt fo

rmal

ities

and

proc

edur

es.

3.C

arri

age a

nd In

sura

nce—

The s

elle

r has

no

oblig

a-tio

n to

pro

vide

for m

ain

carri

age

of g

oods

or f

or in

-su

ranc

e. A

t the

requ

est o

f the

buy

er, t

he s

elle

r may

cont

ract

for c

arria

ge o

n sta

ndar

d in

dustr

y te

rms a

t the

buye

r’s ri

sk an

d co

st.

No

oblig

ation

to p

rovid

e ins

uran

ce. P

rovi

de in

form

ation

to en

able

the b

uyer

to ob

tain i

nsur

ance

.4.

Del

iver

y—D

eliv

er th

e go

ods

alon

gsid

e th

e sh

ip a

tth

e nam

ed p

ort o

f shi

pmen

t, or

“pro

cure

the g

oods

sode

liver

ed,”

with

in th

e ag

reed

-upo

n tim

e sti

pula

ted

inth

e sa

les

cont

ract

. If

the

buye

r ha

s no

t stip

ulat

ed a

spec

ific

load

ing

poin

t at t

he n

amed

por

t of s

hipm

ent,

the s

elle

r may

pic

k on

e tha

t sui

ts se

ller’s

pur

pose

s.5.

Risk

Tra

nsfe

r—A

ssum

e all

risk

s of l

oss o

r dam

age

to th

e go

ods u

ntil

they

hav

e be

en d

elive

red

along

side

the

ship

at

the

nam

ed p

ort

of s

hipm

ent

with

in t

heag

reed

-upo

n tim

e stip

ulate

d in

the s

ales c

ontra

ct.6.

Cos

ts—

Pay

all c

osts

until

the g

oods

hav

e bee

n de

liv-

ered

alon

gsid

e the

ship

at th

e nam

ed p

ort o

f shi

pmen

t.Pa

y al

l cos

ts re

latin

g to

expo

rt, in

clud

ing

custo

ms f

or-

mal

ities

, dut

ies,

and

taxe

s.

7.N

otic

e to

the

Buye

r—A

t buy

er’s

risk

and

cost,

pro

-vi

de n

otic

e to

the

buye

r tha

t the

goo

ds h

ave

been

de-

liver

ed a

long

side

the

ship

at

the

nam

ed p

ort

ofsh

ipm

ent,

or th

at th

e sh

ip d

id n

ot ta

ke p

osse

ssio

n of

the g

oods

at th

e agr

eed-

upon

tim

e.8.

Del

iver

y an

d Tr

ansp

ort

Doc

umen

t(s)—

Prov

ide

the

buye

r with

a p

roof

of d

elive

ry th

at th

e go

ods h

ave

been

deli

vere

d alo

ngsid

e th

e sh

ip at

the

nam

ed p

ort o

fsh

ipm

ent.

At t

he b

uyer

’s re

ques

t, if

the

proo

f of d

eliv-

ery

is no

t a tr

ansp

ort d

ocum

ent,

help

the b

uyer

obt

ain a

trans

port

docu

men

t.9.

Che

ckin

g, P

acki

ng, M

arki

ng—

Pay

all co

sts as

soci-

ated

with

chec

king

the q

ualit

y an

d qu

antit

y of

the g

oods

to b

e in

conf

orm

ity w

ith th

e sale

s con

tract.

Pro

vide

pre

-sh

ipm

ent i

nspe

ction

s as r

equi

red

for e

xpor

t for

mali

ties.

Pack

age t

he g

oods

, unl

ess t

he g

oods

are c

onve

ntio

nally

sold

unp

acka

ged.

Pack

age t

he g

oods

as th

e sell

er d

eem

sap

prop

riate

for t

rans

port,

unles

s the

buye

r has

give

n spe

-cif

ic re

quire

men

ts pr

ior t

o th

e fin

aliza

tion

of th

e sa

lesco

ntra

ct. P

rovi

de m

arki

ng ap

prop

riate

to th

e pac

kagi

ng.

10.O

ther

—Ti

mely

pro

vide

the

buye

r, at

the

buye

r’s re

-qu

est a

nd c

ost,

assis

tance

in se

curin

g in

form

ation

and

docu

men

ts, in

cludi

ng se

curit

y in

form

ation

, req

uire

d by

the

buye

r for

tran

spor

t and

impo

rt of

the

good

s to

the

final

desti

natio

n. R

eimbu

rse th

e buy

er fo

r buy

er’s

costs

relat

ed to

secu

ring

info

rmati

on an

d do

cum

ents,

inclu

d-in

g se

curit

y in

form

ation

, the

selle

r req

uire

s for

exp

ort

form

alitie

s an

d se

curit

y cle

aran

ce o

f the

goo

ds to

the

nam

ed p

ort o

f shi

pmen

t.

Buy

er’s

Res

pons

ibili

ties

(sum

mar

y)1.

Paym

ent—

Pay

for t

he g

oods

as p

rovi

ded

in th

e sal

esco

ntra

ct.

2.Li

cens

es,

Secu

rity

, an

d C

usto

ms

Form

aliti

es—

Obt

ain

any

impo

rt lic

ense

s or a

utho

rizat

ions

and

han-

dle a

ll im

port

custo

ms f

orm

aliti

es.

3.C

arri

age

and

Insu

ranc

e—Pr

ovid

e fo

r loa

ding

and

carri

age o

f the

good

s fro

m th

e nam

ed po

rt of

ship

men

t. Bu

yer h

as n

o ob

ligat

ion

to th

e sel

ler f

or in

sura

nce.

4.Ta

king

Del

iver

y—Ta

ke d

eliv

ery

of t

he g

oods

as

prov

ided

in th

e sal

es co

ntra

ct.

5.R

isk T

rans

fer—

Ass

ume

all r

isk o

f los

s or

dam

age

from

the

time

the

good

s ha

ve b

een

deliv

ered

alo

ng-

side

the

ship

at t

he n

amed

por

t of s

hipm

ent a

s pr

o-vi

ded

in th

e sal

es co

ntra

ct. I

f the

buy

er n

omin

ates

the

ship

, ass

ume a

ll ris

k of

loss

or d

amag

e and

costs

if th

ena

med

ship

doe

s not

arriv

e on

time,

or if

the s

hip

fails

to ta

ke th

e goo

ds, o

r if s

uffic

ient

not

ice i

s not

giv

en to

selle

r reg

ardi

ng sh

ip n

ame,

load

ing

poin

t, an

d tim

e. 6.

Cos

ts—

Pay

all co

sts fo

r carr

iage a

nd in

suran

ce fr

om th

etim

e the

goo

ds h

ave b

een

deliv

ered

along

side t

he sh

ip at

the

nam

ed p

ort o

f shi

pmen

t. Pa

y all

cos

ts res

ultin

g fro

mfai

lure

to ta

ke d

elive

ry at

the n

amed

plac

e and

tim

e. Pa

yall

cos

ts rel

ating

to im

port

form

alitie

s, du

ties,

fees,

and

taxes

, and

othe

r cha

rges

inclu

ding

tran

sshi

pmen

t. 7.

Not

ice t

o Se

ller—

If th

e buy

er no

min

ates t

he sh

ip, g

ive

suffi

cient

not

ice to

the s

eller

of t

he n

ame o

f the

ship

, the

load

ing p

oint

, and

the t

ime o

r per

iod f

or de

liver

y.8.

Proo

f of D

eliv

ery—

Acc

ept t

he se

ller’s

del

iver

y do

c-um

ent i

f it i

s in

conf

orm

ity w

ith th

e sal

es co

ntra

ct.

9.In

spec

tion(

s)—

Pay

for p

re-s

hipm

ent i

nspe

ctio

ns u

n-le

ss su

ch is

requ

ired

by th

e cou

ntry

of e

xpor

t.10

.Oth

er—

Tim

ely ad

vise

the s

eller

of a

ny se

curit

y-re

lated

data

requ

irem

ents.

Reim

burse

the s

eller

for s

eller

’s co

stsre

lated

to s

ecur

ing

info

rmati

on o

r do

cum

entat

ion,

in-

cludi

ng se

curit

y in

form

ation

, tha

t the

buy

er re

quire

s for

impo

rt fo

rmali

ties,

secu

rity

clear

ance

, and

tran

spor

t of

the g

oods

to th

e fin

al de

stina

tion.

Tim

ely p

rovi

de th

e sell

er, at

the s

eller

’s re

ques

t and

cost,

with

any

doc

umen

ts an

d in

form

ation

requ

ired

for e

x-po

rt, tr

ansp

ort, a

nd se

curit

y cle

aran

ce o

f the

good

s to

the

nam

ed po

rt of

ship

men

t.



FOB

Free

On

Boa

rd (.

. . n

amed

por

t of s

hipm

ent)

FOB

, Fre

e O

n B

oard

(. .

. nam

ed p

ort o

f shi

pmen

t)In

Fre

e On

Boar

d, th

e sel

ler/e

xpor

ter/m

anuf

actu

rer c

lear

sth

e go

ods

for

expo

rt an

d de

liver

s th

em o

n bo

ard

the

nam

ed v

esse

l at t

he “n

amed

por

t of s

hipm

ent.”

This

is a c

hang

e fro

m In

coter

ms 2

000,

whe

re th

e sell

er w

asre

spon

sible

only

to de

liver

the g

oods

“pas

t the

ship

’s ra

il.”

With

FO

B, th

e se

ller h

as th

e op

tion

to d

eliv

er th

e go

ods

on b

oard

the

vess

el, o

r to

“pro

cure

goo

ds a

lread

y so

de-

liver

ed.”

This

is a

refe

renc

e to

so-

calle

d “s

tring

sal

es,”

whe

re a

sing

le s

hipm

ent m

ight

be

reso

ld m

ultip

le ti

mes

durin

g tra

nspo

rt, as

is co

mm

on in

the c

omm

odity

trad

e.Th

e nam

ed p

lace i

n FO

B is

a por

t and

ther

efor

e the

term

isus

ed on

ly fo

r oce

an or

inlan

d wate

rway

tran

spor

t.W

ith F

OB,

the

nam

ed p

ort o

f shi

pmen

t is d

omes

tic to

the

selle

r.

If th

e sh

ipm

ent i

s co

ntai

neriz

ed o

r to

be

cont

aine

rized

,co

mm

on p

ract

ice

is to

del

iver

the

ship

men

t to

the

carri

erat

a te

rmin

al a

nd n

ot o

n bo

ard

a sh

ip. I

n su

ch si

tuat

ions

,th

e FCA

term

is re

com

men

ded.

The

FOB

term

is c

omm

only

use

d in

the

sal

e of

bul

kco

mm

odity

carg

o su

ch as

oil,

gra

ins,

and

ore.

The k

ey d

ocum

ent i

n FO

B tra

nsac

tions

is th

e “O

n Bo

ard

Bill

of L

adin

g.”

The n

amed

plac

e in

FOB

is a p

ort, a

nd th

eref

ore t

he te

rm is

used

only

for o

cean

or in

land w

aterw

ay tr

ansp

ort.

Selle

rs an

d bu

yers

often

misu

se th

e FO

B ter

m. F

OB

does

not m

ean

load

ing

good

s ont

o a t

ruck

or t

rain

at th

e sell

er’s

plac

e of b

usin

ess.

FOB

is us

ed o

nly

in re

fere

nce t

o de

liver

-in

g th

e goo

ds o

n bo

ard

a shi

p in

oce

an o

r inl

and

wate

rway

trans

port.

The

FCA

term

, on

the

othe

r han

d, is

app

licab

leto

all m

odes

of t

rans

port.

Exa

mp

les

FOB,

ABC

Shi

ppin

g Li

ne, V

esse

l XY

Z, B

ueno

s A

ires,

Arg

entin

aFO

B, D

EF S

hipp

ing

Line

, Ves

sel U

VW

, Gda

nsk,

Pol

and

Mo

des

of

Tra

nsp

ort

Air

—N

oR

ail—

No

Roa

d—N

oSe

a—Ye

sIn

land

Wat

erw

ay—

Yes

Mul

timod

al—

No

Selle

r/Ex

porte

rN

amed

Pla

ce

Exp

ort

Doc

umen

ts,

Form

aliti

es,

and

Fees

Pre

-Car

riage

to

Nam

ed

Pla

ce, N

ot

Unl

oade

d

Del

iver

yat

Nam

ed

Pla

ce/P

ort,

Unl

oade

d

Load

ing

at N

amed

Pla

ce/P

ort

of S

hipm

ent

Load

edO

n B

oard

Shi

p or

Vess

el

Tran

spor

t by

Sea

or In

land

W

ater

way

Onl

y

On

Boa

rd

Shi

p or

Ve

ssel

, Not

U

nloa

ded

Dis

char

ging

(u

nloa

ding

) at

Nam

ed P

lace

/Por

t of

Des

tinat

ion

Del

iver

y at

N

amed

Pla

ce/

Term

inal

Onw

ard

Car

riage

to

Nam

ed P

lace

, N

ot U

nloa

ded

Impo

rt D

ocum

ents

, Fo

rmal

ities

, an

d D

utie

s

Buy

er/

Impo

rter

Nam

ed P

lace

, U

nloa

ded

CA

RR

IAG

E

RIS

KS

CO

STS

SELL

ERB

UYE

R

ASUS

Highlight

ASUS

Highlight

ASUS

Highlight

ASUS

Highlight

ASUS

Highlight



FOB

Free

on

Boa

rd (.

. . n

amed

por

t of s

hipm

ent)

Inco

term

Cat

egor

yFO

B is

an “

F” te

rm s

peci

fyin

g th

at th

e se

ller/e

xpor

ter i

sre

spon

sible

for

del

iver

ing

the

good

s, ex

port

clea

red,

on

boar

d a s

hip,

but

doe

s not

bea

r risk

or c

osts

afte

rwar

ds.

Not

e: D

ocum

ents

may

be

pape

r or e

lect

roni

c, as

cus

tom

-ar

y or

as ag

reed

to b

y th

e par

ties t

o th

e tra

nsac

tion.

Mod

es o

f Tra

nspo

rt C

over

edU

sed

only

for o

cean

or i

nlan

d w

aterw

ay tr

ansp

ort.

Selle

r’s R

espo

nsib

ilitie

s (s

umm

ary)

1.G

oods

—Pr

ovid

e the

goo

ds, c

omm

erci

al in

voic

e, an

dot

her d

ocum

enta

tion

as re

quire

d by

the s

ales

cont

ract

.2.

Lice

nses

, Se

curi

ty,

and

Cus

tom

s Fo

rmal

ities

—O

btai

n at

ow

n ris

k an

d co

st al

l req

uire

d ex

port

li-ce

nses

, doc

umen

ts, a

nd a

utho

rizat

ions

and

car

ry o

utex

port

form

aliti

es an

d pr

oced

ures

.3.

Car

riag

e and

Insu

ranc

e—Th

e sel

ler h

as n

o ob

liga-

tion

to p

rovi

de fo

r mai

n ca

rriag

e of

goo

ds o

r for

in-

sura

nce.

At

the

requ

est

and

cost

of t

he b

uyer

, the

selle

r may

con

tract

for c

arria

ge o

n sta

ndar

d in

dustr

yte

rms a

t the

buy

er’s

risk

and

cost.

N

o ob

ligati

on to

pro

vide

insur

ance

. Pro

vide

info

rmati

onto

enab

le th

e buy

er to

obtai

n ins

uran

ce.

4.D

eliv

ery—

Deli

ver t

he go

ods o

n boa

rd th

e nam

ed ve

s-se

l at t

he n

amed

por

t of s

hipm

ent a

t the

tim

e stip

ulate

din

the

sales

con

tract,

or “

proc

ure

the

good

s so

deli

v-er

ed.”

If th

e buy

er h

as n

ot st

ipul

ated

a spe

cific

load

ing

poin

t at t

he n

amed

por

t of

ship

men

t, th

e se

ller

may

pick

one

that

suits

selle

r’s p

urpo

ses.

5.R

isk T

rans

fer—

Ass

ume

all ri

sks o

f los

s or d

amag

eto

the

good

s un

til th

ey h

ave

been

deli

vere

d on

boa

rdth

e sh

ip a

t th

e na

med

por

t of

shi

pmen

t, w

ithin

the

agre

ed-u

pon

time s

tipul

ated

in th

e sale

s con

tract.

6.C

osts

—Pa

y al

l cos

ts un

til th

e goo

ds h

ave b

een

deliv

-er

ed o

n bo

ard

the

vess

el a

t the

nam

ed p

ort o

f shi

p-m

ent.

Pay

all

costs

rel

atin

g to

exp

ort,

incl

udin

g

custo

ms f

orm

aliti

es, d

utie

s, an

d ta

xes.

7.N

otic

e to

the

Buye

r—A

t buy

er’s

risk

and

cost,

pro

-vi

de n

otic

e to

the

buye

r tha

t the

goo

ds h

ave

been

de-

liver

ed o

n bo

ard

the

ship

at

the

nam

ed p

ort

ofsh

ipm

ent,

or th

at th

e sh

ip d

id n

ot ta

ke p

osse

ssio

n of

the g

oods

at th

e agr

eed-

upon

tim

e.8.

Del

iver

y an

d Tr

ansp

ort

Doc

umen

t(s)—

Prov

ide

the b

uyer

with

a pr

oof o

f del

iver

y th

at th

e goo

ds h

ave

been

del

iver

ed o

n bo

ard

the s

hip

at th

e nam

ed p

ort o

fsh

ipm

ent.

At t

he b

uyer

’s re

ques

t, if

the p

roof

of d

eliv

-er

y is

not a

tran

spor

t doc

umen

t, he

lp th

e buy

er o

btai

na t

rans

port

docu

men

t.9.

Che

ckin

g, P

acki

ng, M

arki

ng—

Pay

all co

sts as

soci-

ated

with

chec

king

the q

ualit

y an

d qu

antit

y of

the g

oods

to b

e in

conf

orm

ity w

ith th

e sale

s con

tract.

Pro

vide

pre

-sh

ipm

ent i

nspe

ction

s as r

equi

red

for e

xpor

t for

mali

ties.

Pack

age t

he g

oods

, unl

ess t

he g

oods

are c

onve

ntio

nally

sold

unp

acka

ged.

Pack

age t

he g

oods

as th

e sell

er d

eem

sap

prop

riate

for t

rans

port,

unles

s the

buye

r has

give

n spe

-cif

ic re

quire

men

ts pr

ior t

o th

e fin

aliza

tion

of th

e sa

lesco

ntra

ct. P

rovi

de m

arki

ng ap

prop

riate

to th

e pac

kagi

ng.

10.O

ther

—Ti

mely

prov

ide t

he bu

yer, a

t the b

uyer

’s req

uest

and

cost,

ass

istan

ce in

sec

uring

info

rmati

on a

nd d

ocu-

men

ts, in

cludi

ng s

ecur

ity in

form

ation

, req

uire

d by

the

buye

r for

tran

spor

t and

impo

rt of

the

good

s to

the

final

desti

natio

n. Re

imbu

rse th

e buy

er fo

r buy

er’s

costs

relat

edto

secu

ring i

nfor

mati

on an

d doc

umen

ts, in

cludi

ng se

curit

yin

form

ation

the

selle

r req

uires

for e

xpor

t for

mali

ties a

ndse

curit

y cle

aranc

e of

the

good

s to

the

ship

at t

he n

amed

port

of sh

ipmen

t. B

uyer

’s R

espo

nsib

ilitie

s (s

umm

ary)

1.Pa

ymen

t—Pa

y fo

r the

goo

ds as

pro

vide

d in

the s

ales

cont

ract

.2.

Lice

nses

, Se

curi

ty,

and

Cus

tom

s Fo

rmal

ities

—O

btai

n an

y im

port

licen

ses o

r aut

horiz

atio

ns an

d ha

n-dl

e all

impo

rt cu

stom

s for

mal

ities

.

3.C

arri

age

and

Insu

ranc

e—Pr

ovid

e fo

r ca

rriag

e of

the g

oods

from

the n

amed

por

t of s

hipm

ent.

Buye

r has

no

oblig

atio

n to

the s

elle

r for

insu

ranc

e.4.

Taki

ng D

eliv

ery—

Take

del

iver

y of

the

goo

ds a

spr

ovid

ed in

the s

ales

cont

ract

.5.

Risk

Tra

nsfe

r—A

ssum

e all

risk

of

loss

or

dam

age

from

the t

ime t

he go

ods h

ave b

een d

elive

red on

board

the

ship

at th

e nam

ed po

rt of

ship

men

t. If t

he bu

yer n

omin

ates

the s

hip,

assu

me a

ll risk

of lo

ss or

dam

age a

nd co

sts if

the

nam

ed sh

ip d

oes n

ot ar

rive o

n tim

e, or

if th

e shi

p fai

ls to

take t

he g

oods

, or i

f suf

ficien

t not

ice is

not

giv

en to

selle

rreg

ardin

g shi

p nam

e, loa

ding

poin

t, and

time.

6.C

osts

—Pa

y al

l cos

ts fo

r car

riage

and

insu

ranc

e fro

mth

e tim

e th

e go

ods h

ave

been

del

iver

ed o

n bo

ard

the

ship

at t

he n

amed

por

t of s

hipm

ent.

Pay

all c

osts

re-

sulti

ng f

rom

fai

lure

to

take

del

iver

y at

the

nam

edpl

ace

and

time.

Pay

all c

osts

rela

ting

to im

port

for-

mal

ities

, dut

ies,

fees

, and

taxe

s, an

d ot

her c

harg

es in

-cl

udin

g tra

nssh

ipm

ent.

7.N

otic

e to

Selle

r—If

the b

uyer

nom

inate

s the

ship

, giv

esu

fficie

nt n

otice

to th

e se

ller o

f the

nam

e of

the

vess

el,th

e loa

ding

poin

t, and

the t

ime o

r per

iod f

or de

liver

y.8.

Proo

f of D

eliv

ery—

Acc

ept t

he se

ller’s

del

iver

y do

c-um

ent i

f it i

s in

conf

orm

ity w

ith th

e sal

es co

ntra

ct.

9.In

spec

tion(

s)—

Pay

for p

re-s

hipm

ent i

nspe

ctio

ns u

n-le

ss su

ch is

requ

ired

by th

e cou

ntry

of e

xpor

t.10

.Oth

er—

Tim

ely ad

vise

the s

eller

of a

ny se

curit

y-re

lated

data

requ

irem

ents.

Reim

burse

the s

eller

for s

eller

’s co

stsre

lated

to s

ecur

ing

info

rmati

on o

r do

cum

entat

ion,

in-

cludi

ng se

curit

y in

form

ation

, tha

t the

buy

er re

quire

s for

impo

rt fo

rmali

ties,

secu

rity

clear

ance

, and

tran

spor

t of

the g

oods

to th

e fin

al de

stina

tion.

Tim

ely p

rovi

de th

e sell

er, at

the s

eller

’s re

ques

t and

cost,

with

any

doc

umen

ts an

d in

form

ation

requ

ired

for e

x-po

rt, tr

ansp

ort, a

nd se

curit

y cle

aran

ce o

f the

good

s to

the

nam

ed po

rt of

ship

men

t.



CFR

Cos

t and

Fre

ight

(. .

. nam

ed p

ort o

f des

tinat

ion)

CFR

, Cos

t and

Fre

ight

(. .

. nam

ed p

ort o

f des

tinat

ion)

In C

ost a

nd F

reig

ht, t

he se

ller/e

xpor

ter/m

anuf

actu

rer c

lears

the g

oods

for e

xpor

t and

deli

vers

them

on

boar

d th

e shi

p at

the

port

of s

hipm

ent (

not d

estin

ation

). Th

is is

whe

re r

iskpa

sses

from

selle

r to b

uyer.

The

selle

r, ho

wev

er, is

resp

onsib

le fo

r con

tracti

ng fo

r and

payi

ng th

e cos

ts as

socia

ted w

ith tr

ansp

ort o

f the

good

s to t

he“n

amed

por

t of

desti

natio

n.” T

his

is w

here

cos

ts tra

nsfe

rfro

m se

ller t

o buy

er.It

is im

porta

nt to

not

e tha

t the

tran

sfer o

f risk

from

selle

r to

buye

r occ

urs a

t a d

iffer

ent p

oint

than

the t

rans

fer o

f cos

ts.W

hen

usin

g th

e CFR

term

, it is

advi

sabl

e to

clear

ly sp

ecify

in th

e con

tract

of sa

le, an

d in

cont

racts

of c

arria

ge, n

ot o

nly

the n

amed

por

t of d

estin

ation

, but

also

the p

recis

e poi

nt at

or w

ithin

the n

amed

por

t of d

estin

ation

.

With

CFR

, the s

eller

has

the o

ptio

n to

deli

ver t

he g

oods

on

boar

d th

e ve

ssel,

or t

o “p

rocu

re g

oods

alre

ady

so d

eliv-

ered

.” Th

is is

a ref

eren

ce to

so-c

alled

“str

ing

sales

” whe

rea

singl

e sh

ipm

ent m

ight

be

reso

ld m

ultip

le tim

es d

urin

gtra

nspo

rt, as

is co

mm

on in

the c

omm

odity

trad

e.Th

e na

med

des

tinati

on in

CFR

is a

por

t, an

d th

eref

ore

the

term

is us

ed on

ly fo

r oce

an or

inlan

d wate

rway

tran

spor

t.If

the

ship

men

t is

cont

aine

rized

or

to b

e co

ntai

neriz

ed,

com

mon

pra

ctic

e is

to d

eliv

er th

e shi

pmen

t to

the

carri

erat

a te

rmin

al a

nd n

ot o

n bo

ard

a sh

ip. I

n su

ch si

tuat

ions

,th

e CPT

term

is re

com

men

ded.

With

CFR

, the

nam

ed p

ort o

f des

tinat

ion

is do

mes

tic to

the b

uyer

.Th

e CF

R ter

m is

com

mon

ly u

sed

the

sale

of a

) bul

k co

m-

mod

ity ca

rgo s

uch a

s oil,

grain

s, an

d ore,

b) ov

ersize

and o

ver-

weig

ht ca

rgo

that

will

not f

it in

to an

oce

an c

ontai

ner,

and

c)ca

rgo t

hat e

xcee

ds th

e weig

ht lim

itatio

ns of

ocea

n con

taine

rs.

Exa

mp

les

CFR,

Ter

min

al 2

, Por

t of O

akla

nd, C

alifo

rnia

, USA

CFR,

ABC

Ter

min

al, P

ort o

f Tok

yo, J

apan

Mo

des

of

Tra

nsp

ort

Air

—N

oR

ail—

No

Roa

d—N

oSe

a—Ye

sIn

land

Wat

erw

ay—

Yes

Mul

timod

al—

No

Selle

r/Ex

porte

rN

amed

Pla

ce

Exp

ort

Doc

umen

ts,

Form

aliti

es,

and

Fees

Pre

-Car

riage

to

Nam

ed

Pla

ce, N

ot

Unl

oade

d

Del

iver

yat

Nam

ed

Pla

ce/P

ort,

Unl

oade

d

Load

ing

at N

amed

Pla

ce/P

ort

of S

hipm

ent

Load

edO

n B

oard

Shi

p or

Vess

el

Tran

spor

t by

Sea

or In

land

W

ater

way

Onl

y

On

Boa

rd

Shi

p or

Ve

ssel

, Not

U

nloa

ded

Dis

char

ging

(u

nloa

ding

) at

Nam

ed P

lace

/Por

t of

Des

tinat

ion

Del

iver

y at

N

amed

Pla

ce/

Term

inal

Onw

ard

Car

riage

to

Nam

ed P

lace

, N

ot U

nloa

ded

Impo

rt D

ocum

ents

, Fo

rmal

ities

, an

d D

utie

s

Buy

er/

Impo

rter

Nam

ed P

lace

, U

nloa

ded

CA

RR

IAG

E

RIS

KS

CO

STS

SELL

ERB

UYE

R

ASUS

Highlight

ASUS

Highlight

ASUS

Highlight

ASUS

Highlight

ASUS

Highlight

ASUS

Highlight

ASUS

Highlight



CFR

Cos

t and

Fre

ight

(. .

. nam

ed p

ort o

f des

tinat

ion)

Inco

term

Cat

egor

yCF

R is

a “C

” ter

m sp

ecify

ing

that

the

selle

r is r

espo

nsib

lefo

r deli

verin

g th

e go

ods

on b

oard

the

ship

at t

he p

ort o

fsh

ipm

ent a

nd c

ontra

cting

and

pay

ing

for

carri

age

to th

e“n

amed

por

t of

desti

natio

n.”

“C”

term

s ev

iden

ce “

ship

-m

ent”

(as o

ppos

ed to

“arri

val”)

cont

racts

.N

ote:

Doc

umen

ts m

ay b

e pa

per o

r ele

ctro

nic,

as c

usto

m-

ary

or as

agre

ed to

by

the p

artie

s to

the t

rans

actio

n.M

odes

of T

rans

port

Cov

ered

All

mod

es o

f tra

nspo

rt in

cludi

ng m

ultim

odal.

Selle

r’s R

espo

nsib

ilitie

s (s

umm

ary)

1.G

oods

—Pr

ovid

e the

goo

ds, c

omm

erci

al in

voic

e, an

dot

her d

ocum

enta

tion

as re

quire

d by

the s

ales

cont

ract

.2.

Lice

nses

, Se

curi

ty,

and

Cus

tom

s Fo

rmal

ities

—O

btain

at ow

n risk

and c

ost a

ll re

quire

d exp

ort l

icens

es,

docu

men

ts, a

nd a

utho

rizati

ons

and

carry

out

exp

ort

form

alitie

s and

pro

cedu

res.

3.C

arri

age

and

Insu

ranc

e—Co

ntra

ct o

r pr

ocur

e a

cont

ract

for t

he c

arria

ge o

f the

goo

ds fr

om th

e po

int

of d

eliv

ery

to th

e nam

ed p

ort o

f des

tinat

ion.

N

o ob

ligati

on to

pro

vide

insur

ance

. Pro

vide

info

rmati

onto

enab

le th

e buy

er to

obtai

n ins

uran

ce.

4.D

eliv

ery—

Deli

ver t

he g

oods

on

boar

d th

e sh

ip a

t the

port

of sh

ipm

ent (

not d

estin

ation

) or “

proc

ure g

oods

al-

read

y so

del

iver

ed” w

ithin

the a

gree

d-up

on ti

me.

5.R

isk T

rans

fer—

Ass

ume

all ri

sks o

f los

s or d

amag

eto

the

good

s un

til th

ey h

ave

been

deli

vere

d on

boa

rdth

e shi

p at t

he po

rt of

ship

men

t (no

t des

tinati

on),

with

inth

e agr

eed-

upon

tim

e stip

ulate

d in

the s

ales c

ontra

ct.6.

Cos

ts—

Pay

all c

osts

until

the g

oods

hav

e bee

n de

liv-

ered

on

boar

d th

e shi

p at

the p

ort o

f shi

pmen

t. Pa

y al

lco

sts o

f lo

adin

g an

d ca

rriag

e to

the

nam

ed p

ort o

fde

stina

tion.

Pay

for c

osts

of u

nloa

ding

if u

nloa

ding

isin

clud

ed i

n th

e co

ntra

ct f

or m

ain

carri

age.

Pay

all

costs

rel

atin

g to

exp

ort,

incl

udin

g cu

stom

s fo

rmal

i-

ties,

dutie

s, an

d ta

xes,

as w

ell a

s co

sts r

equi

red

for

trans

ship

men

t thr

ough

any

cou

ntry

up

to th

e na

med

port

of d

estin

atio

n.7.

Not

ice

to t

he B

uyer

—Pr

ovid

e no

tice

that

ena

bles

the b

uyer

to ta

ke ti

mel

y po

sses

sion

of th

e goo

ds at

the

nam

ed p

ort o

f des

tinat

ion.

8.D

eliv

ery

and

Tran

spor

t D

ocum

ents

—Pr

ovid

e the

buye

r with

a tra

nspo

rt do

cum

ent,

dated

with

in th

e per

iod

agree

d, th

at all

ows

the

buye

r to

claim

the

good

s at

the

nam

ed p

ort o

f des

tinati

on a

nd (u

nles

s oth

erwise

agr

eed)

allow

s the

buy

er to

sell

the g

oods

whi

le in

trans

it th

roug

hth

e tra

nsfer

of t

he d

ocum

ent o

r by

notif

icatio

n to

the

sea

carri

er. If

a ne

gotia

ble t

ransp

ort d

ocum

ent i

s iss

ued,

a ful

lse

t of o

rigin

als m

ust b

e giv

en to

the b

uyer.

9.C

heck

ing,

Pac

king

, Mar

king

—Pa

y all

costs

asso

ci-ate

d w

ith ch

ecki

ng th

e qua

lity

and

quan

tity

of th

e goo

dsto

be i

n co

nfor

mity

with

the s

ales c

ontra

ct. P

rovi

de p

re-

ship

men

t ins

pecti

ons a

s req

uire

d fo

r exp

ort f

orm

alitie

s.Pa

ckag

e the

goo

ds, u

nles

s the

goo

ds ar

e con

vent

iona

llyso

ld u

npac

kage

d. Pa

ckag

e the

goo

ds as

the s

eller

dee

ms

appr

opria

te fo

r tra

nspo

rt, un

less t

he bu

yer h

as gi

ven s

pe-

cific

requ

irem

ents

prio

r to

the

finali

zatio

n of

the

sales

cont

ract.

Pro

vide

mar

king

appr

opria

te to

the p

acka

ging

.10

.Oth

er—

Tim

ely pr

ovid

e the

buye

r, at th

e buy

er’s

reque

stan

d co

st, a

ssist

ance

in s

ecur

ing in

form

ation

and

doc

u-m

ents,

inclu

ding

sec

urity

info

rmati

on, r

equi

red

by t

hebu

yer

for

impo

rt an

d tra

nspo

rt of

the

good

s fro

m th

ena

med

por

t to

the fi

nal d

estin

ation

. Reim

burse

the b

uyer

for b

uyer

’s co

sts re

lated

to se

curin

g inf

orm

ation

and d

ocu-

men

tatio

n, in

cludi

ng s

ecur

ity in

form

ation

the

selle

r re-

quire

s for

expo

rt fo

rmali

ties,

trans

port,

secu

rity

cleara

nce,

and t

rans

ship

men

t to th

e nam

ed po

rt of

desti

natio

n. B

uyer

’s R

espo

nsib

ilitie

s (s

umm

ary)

1.Pa

ymen

t—Pa

y fo

r the

goo

ds as

pro

vide

d in

the s

ales

cont

ract

.

2.Li

cens

es,

Secu

rity

, an

d C

usto

ms

Form

aliti

es—

Obt

ain

any

impo

rt lic

ense

s or a

utho

rizat

ions

and

han-

dle a

ll im

port

custo

ms f

orm

aliti

es.

3.C

arri

age

and

Insu

ranc

e—Bu

yer h

as n

o ob

ligat

ion

to th

e sel

ler.

4.Ta

king

Del

iver

y—Ta

ke d

elive

ry o

f the

goo

ds a

t the

nam

ed p

ort o

f des

tinati

on as

pro

vide

d in

the c

ontra

ct.5.

Risk

Tra

nsfe

r—A

ssum

e al

l risk

of l

oss

or d

amag

efro

m th

e tim

e the

goo

ds h

ave b

een

deliv

ered

on

boar

dth

e shi

p at

the p

ort o

f shi

pmen

t (no

t des

tinat

ion)

.6.

Cos

ts—

Pay a

ny ad

ditio

nal c

osts

for t

he go

ods,

othe

r tha

nm

ain ca

rriag

e, on

ce th

ey ha

ve be

en de

livere

d on b

oard

the

ship

at th

e por

t of s

hipm

ent. P

ay co

sts of

unlo

ading

, ligh

t-era

ge, a

nd w

harfa

ge at

the p

ort o

f des

tinati

on u

nles

s suc

hco

sts w

ere t

o be

paid

by

selle

r und

er se

ller’s

cont

ract

for

carri

age.

Pay a

ll cos

ts rel

ating

to im

port

form

alitie

s, du

ties,

fees,

and t

axes

. Pay

costs

of on

ward

carri

age.

7.N

otic

e to

Sel

ler—

If, a

ccor

ding

to th

e sa

les c

ontra

ct,

the

buye

r is e

ntitl

ed to

spec

ify a

tim

e fo

r shi

ppin

g or

the

poin

t of r

ecei

ving

the

ship

men

t at t

he n

amed

por

tof

des

tinat

ion,

to g

ive s

elle

r suf

ficie

nt n

otic

e.8.

Proo

f of D

eliv

ery—

Acc

ept t

he se

ller’s

del

iver

y do

c-um

ent i

f it i

s in

conf

orm

ity w

ith th

e sal

es co

ntra

ct.

9.In

spec

tion(

s)—

Pay

for p

re-s

hipm

ent i

nspe

ctio

ns u

n-le

ss su

ch is

requ

ired

by th

e cou

ntry

of e

xpor

t.10

.Oth

er—

Tim

ely ad

vise

the s

eller

of a

ny se

curit

y-re

lated

data

requ

irem

ents.

Reim

burse

the s

eller

for s

eller

’s co

stsre

lated

to s

ecur

ing

info

rmati

on o

r do

cum

entat

ion,

in-

cludi

ng se

curit

y in

form

ation

, tha

t the

buy

er re

quire

s for

impo

rt fo

rmali

ties,

secu

rity

clear

ance

, and

tran

spor

t of

the g

oods

to th

e fin

al de

stina

tion.

Tim

ely p

rovi

de th

e sell

er, at

the s

eller

’s re

ques

t and

cost,

with

any

doc

umen

ts an

d in

form

ation

requ

ired

for e

x-po

rt, tr

ansp

ort, a

nd se

curit

y cle

aran

ce o

f the

good

s to

the

nam

ed po

rt of

desti

natio

n.



CIF

Cos

t, In

sura

nce,

and

Fre

ight

(. .

. nam

ed p

ort o

f des

tinat

ion)

CIF

, Cos

t, In

sura

nce,

and

Fre

ight

(. .

. nam

ed p

ort o

f des

tinat

ion)

In C

ost, I

nsur

ance

, and

Fre

ight

, the s

eller

/expo

rter/m

anuf

ac-

ture

r clea

rs th

e goo

ds fo

r exp

ort a

nd d

elive

rs th

em o

n bo

ard

the

ship

at t

he p

ort o

f shi

pmen

t (no

t des

tinati

on).

This

isw

here

risk

pass

es fr

om se

ller t

o buy

er.Th

e se

ller,

how

ever,

is re

spon

sible

for c

ontra

cting

for a

ndpa

ying

the c

osts

asso

ciated

with

tran

spor

t of t

he g

oods

and

min

imum

cov

er in

sura

nce t

o th

e “na

med

por

t of d

estin

a-tio

n.” T

his i

s whe

re co

sts tr

ansfe

r fro

m se

ller t

o buy

er.It

is im

porta

nt to

not

e tha

t the

tran

sfer o

f risk

from

selle

r to

buye

r occ

urs a

t a d

iffer

ent p

oint

than

the t

rans

fer o

f cos

ts.W

hen

usin

g th

e CIF

term

, it i

s adv

isabl

e to

clear

ly sp

ecify

in th

e con

tract

of sa

le an

d in

cont

racts

of c

arria

ge, n

ot o

nly

the n

amed

por

t of d

estin

ation

, but

also

the p

recis

e poi

nt at

or w

ithin

the n

amed

por

t of d

estin

ation

.

With

CIF

, the

selle

r has

the o

ptio

n to

del

iver

the g

oods

on

boar

d th

e ve

ssel

, or t

o “p

rocu

re g

oods

alre

ady

so d

eliv

-er

ed.”

This

is a

refe

renc

e to

so-

calle

d “s

tring

sal

es”

whe

re a

sing

le sh

ipm

ent m

ight

be

reso

ld m

ultip

le ti

mes

durin

g tra

nspo

rt, as

is co

mm

on in

the c

omm

odity

trad

e.Th

e na

med

des

tinati

on in

CIF

is a

por

t, an

d th

eref

ore

the

term

is us

ed on

ly fo

r oce

an o

r inl

and w

aterw

ay tr

ansp

ort.

If th

e sh

ipm

ent i

s co

ntai

neriz

ed o

r to

be

cont

aine

rized

,co

mm

on p

ract

ice

is to

del

iver

the

ship

men

t to

the

carri

erat

a te

rmin

al a

nd n

ot o

n bo

ard

a sh

ip. I

n su

ch si

tuat

ions

,th

e CIP

term

is re

com

men

ded.

With

CIF

, the

nam

ed p

ort o

f des

tinat

ion

is do

mes

tic to

the b

uyer

.Th

e CIF

term

is co

mm

only

use

d in

the s

ale o

f a) b

ulk

com

-

mod

ity ca

rgo s

uch a

s oil,

grain

s, an

d ore,

b) ov

ersize

and o

ver-

weig

ht c

argo

that

will

not f

it in

to a

n oc

ean

cont

ainer,

and

c)

carg

o tha

t exc

eeds

the w

eight

limita

tions

of oc

ean c

ontai

ners.

Exa

mp

les

CIF,

Ter

min

al 2

, Por

t of O

akla

nd, C

alifo

rnia

, USA

CIF,

ABC

Ter

min

al, P

ort o

f Tok

yo, J

apan

Mo

des

of

Tra

nsp

ort

Air

—N

oR

ail—

No

Roa

d—N

oSe

a—Ye

sIn

land

Wat

erw

ay—

Yes

Mul

timod

al—

No

Selle

r/Ex

porte

rN

amed

Pla

ce

Exp

ort

Doc

umen

ts,

Form

aliti

es,

and

Fees

Pre

-Car

riage

to

Nam

ed

Pla

ce, N

ot

Unl

oade

d

Del

iver

yat

Nam

ed

Pla

ce/P

ort,

Unl

oade

d

Load

ing

at N

amed

Pla

ce/P

ort

of S

hipm

ent

Load

edO

n B

oard

Shi

p or

Vess

el

Tran

spor

t by

Sea

or In

land

W

ater

way

Onl

y

On

Boa

rd

Shi

p or

Ve

ssel

, Not

U

nloa

ded

Dis

char

ging

(u

nloa

ding

) at

Nam

ed P

lace

/Por

t of

Des

tinat

ion

Del

iver

y at

N

amed

Pla

ce/

Term

inal

Onw

ard

Car

riage

to

Nam

ed P

lace

, N

ot U

nloa

ded

Impo

rt D

ocum

ents

, Fo

rmal

ities

, an

d D

utie

s

Buy

er/

Impo

rter

Nam

ed P

lace

, U

nloa

ded

CA

RR

IAG

E

RIS

KS

CO

STS

SELL

ERB

UYE

R

ASUS

Highlight

ASUS

Highlight



CIF

Cos

t, In

sura

nce

and

Frei

ght (

. . .

nam

ed p

ort o

f des

tinat

ion)

In

cote

rm C

ateg

ory

CIF

is a

“C”

term

spec

ifyin

g th

at th

e se

ller i

s res

pons

ible

for d

elive

ring

the

good

s on

boa

rd th

e sh

ip a

t the

por

t of

ship

men

t, an

d co

ntra

cting

and

pay

ing

for c

arria

ge a

nd in

-su

ranc

e to

the

“nam

ed p

ort o

f des

tinati

on.”

“C”

term

s evi

-de

nce “

ship

men

t” (a

s opp

osed

to “a

rriva

l”) co

ntra

cts.

Not

e: D

ocum

ents

may

be

pape

r or e

lect

roni

c, as

cus

tom

-ar

y or

as ag

reed

to b

y th

e par

ties t

o th

e tra

nsac

tion.

Mod

es o

f Tra

nspo

rt C

over

edA

ll m

odes

of t

rans

port

inclu

ding

mul

timod

al.Se

ller’s

Res

pons

ibili

ties

(sum

mar

y)1.

Goo

ds—

Prov

ide t

he g

oods

, com

mer

cial

invo

ice,

and

othe

r doc

umen

tatio

n as

requ

ired

by th

e sal

es co

ntra

ct.

2.Li

cens

es,

Secu

rity

, an

d C

usto

ms

Form

aliti

es—

Obt

ain a

t ow

n ris

k an

d co

st all

exp

ort l

icens

es, d

ocu-

men

ts, an

d au

thor

izatio

ns an

d ca

rry o

ut ex

port

form

ali-

ties a

nd p

roce

dure

s.3.

Car

riag

e an

d In

sura

nce—

Cont

ract

or

proc

ure

aco

ntra

ct fo

r the

car

riage

of t

he g

oods

from

the

poin

tof

del

iver

y to

the

nam

ed p

ort o

f de

stina

tion.

Obta

inan

d pa

y fo

r m

inim

um c

over

carg

o in

suran

ce (

Insti

tute

Carg

o Clau

ses,

Clau

se “C

” cov

erage

) fro

m a

reput

able

in-

suran

ce co

mpa

ny o

r und

erwrit

er. In

suran

ce m

ust p

rovi

deco

verag

e at l

east

to th

e na

med

por

t of d

estin

ation

, ent

itleth

e buy

er to

mak

e a cl

aim d

irectl

y to

the i

nsur

er, b

e for

am

inim

um o

f 110

% o

f the

cont

ract a

mou

nt, a

nd b

e in

the

curre

ncy

of th

e sa

les co

ntrac

t. Pr

ovide

the

buye

r with

an

insu

rance

pol

icy o

r evi

denc

e of i

nsur

ance

. Pro

vide

info

r-m

ation

to en

able

the b

uyer

to ob

tain a

dditi

onal

insu

rance

.4.

Del

iver

y—D

elive

r the

goo

ds o

n bo

ard th

e sh

ip a

t the

port

of sh

ipmen

t or “

proc

ure g

oods

alrea

dy so

deliv

ered.”

5.R

isk T

rans

fer—

Ass

ume

all ri

sks o

f los

s or d

amag

eto

the

good

s un

til th

ey h

ave

been

deli

vere

d on

boa

rdth

e shi

p at t

he po

rt of

ship

men

t (no

t des

tinati

on),

with

inth

e agr

eed-

upon

tim

e stip

ulate

d in

the s

ales c

ontra

ct.6.

Cos

ts—

Pay a

ll cos

ts un

til th

e goo

ds ha

ve be

en de

livere

d

on b

oard

the s

hip

at th

e por

t of s

hipm

ent. P

ay al

l cos

ts of

load

ing an

d carr

iage t

o the

nam

ed po

rt of

desti

natio

n. Pa

yfo

r the

cost

of in

sura

nce a

s des

crib

ed in

#3 ab

ove.

Pay f

orco

sts o

f unlo

ading

if u

nloa

ding

is in

clude

d in

the c

ontra

ctfo

r main

carri

age.

Pay

all co

sts re

latin

g to

expo

rt, in

clud-

ing

custo

ms f

orm

alitie

s, du

ties,

and

taxes

, as w

ell as

costs

requi

red fo

r tran

sship

men

t thr

ough

any

coun

try u

p to

the

nam

ed po

rt of

desti

natio

n.7.

Not

ice

to t

he B

uyer

—Pr

ovid

e no

tice

that

ena

bles

the b

uyer

to ta

ke ti

mel

y po

sses

sion

of th

e goo

ds at

the

nam

ed p

ort o

f des

tinat

ion.

8.D

eliv

ery

and

Tran

spor

t D

ocum

ents

—Pr

ovid

e the

buye

r with

a tra

nspo

rt do

cum

ent,

dated

with

in th

e per

iod

agree

d, th

at all

ows

the

buye

r to

claim

the

good

s at

the

nam

ed p

ort o

f des

tinati

on a

nd (u

nles

s oth

erwise

agr

eed)

allow

s the

buy

er to

sell

the g

oods

whi

le in

trans

it th

roug

hth

e tra

nsfer

of t

he d

ocum

ent o

r by

notif

icatio

n to

the

sea

carri

er. If

a ne

gotia

ble t

ransp

ort d

ocum

ent i

s iss

ued,

a ful

lse

t of o

rigin

als m

ust b

e giv

en to

the b

uyer.

9.C

heck

ing,

Pac

king

, Mar

king

—Pa

y all

costs

asso

ci-ate

d w

ith ch

ecki

ng th

e qua

lity

and

quan

tity

of th

e goo

dsto

be i

n co

nfor

mity

with

the s

ales c

ontra

ct. P

rovi

de p

re-

ship

men

t ins

pecti

ons a

s req

uire

d fo

r exp

ort f

orm

alitie

s.Pa

ckag

e the

goo

ds, u

nles

s the

goo

ds ar

e con

vent

iona

llyso

ld u

npac

kage

d. Pa

ckag

e the

goo

ds as

the s

eller

dee

ms

appr

opria

te fo

r tra

nspo

rt, un

less t

he bu

yer h

as gi

ven s

pe-

cific

requ

irem

ents

prio

r to

the

finali

zatio

n of

the

sales

cont

ract.

Pro

vide

mar

king

appr

opria

te to

the p

acka

ging

.10

.Oth

er—

Tim

ely pr

ovid

e the

buye

r, at th

e buy

er’s

reque

stan

d co

st, a

ssist

ance

in s

ecur

ing in

form

ation

and

doc

u-m

ents,

inclu

ding

sec

urity

info

rmati

on, r

equi

red

by t

hebu

yer

for

impo

rt an

d tra

nspo

rt of

the

good

s fro

m th

ena

med

por

t to

the fi

nal d

estin

ation

. Reim

burse

the b

uyer

for b

uyer

’s co

sts re

lated

to se

curin

g inf

orm

ation

and d

ocu-

men

tatio

n, in

cludi

ng s

ecur

ity in

form

ation

the

selle

r re-

quire

s for

expo

rt fo

rmali

ties,

trans

port,

secu

rity

cleara

nce,

and t

rans

ship

men

t to th

e nam

ed po

rt of

desti

natio

n.

Buy

er’s

Res

pons

ibili

ties

(sum

mar

y)1.

Paym

ent—

Pay

for t

he g

oods

as p

er sa

les c

ontra

ct.

2.Li

cens

es,

Secu

rity

, an

d C

usto

ms

Form

aliti

es—

Obt

ain

any

impo

rt lic

ense

s or a

utho

rizat

ions

and

han-

dle a

ll im

port

custo

ms f

orm

aliti

es.

3.C

arri

age

and

Insu

ranc

e—Bu

yer h

as n

o ob

ligat

ion

to se

ller.

4.Ta

king

Del

iver

y—Ta

ke d

elive

ry o

f the

goo

ds a

t the

nam

ed p

ort o

f des

tinati

on as

pro

vide

d in

the c

ontra

ct.5.

Risk

Tra

nsfe

r—A

ssum

e al

l risk

of l

oss

or d

amag

efro

m th

e tim

e the

goo

ds h

ave b

een

deliv

ered

on

boar

dth

e shi

p at

the p

ort o

f shi

pmen

t (no

t des

tinat

ion)

.6.

Cos

ts—

Pay a

ny ad

ditio

nal c

osts

for t

he go

ods,

othe

r tha

nm

ain ca

rriag

e, on

ce th

ey ha

ve be

en de

livere

d on b

oard

the

ship

at th

e por

t of s

hipm

ent. P

ay co

sts of

unlo

ading

, ligh

t-era

ge, a

nd w

harfa

ge at

the p

ort o

f des

tinati

on u

nles

s suc

hco

sts w

ere t

o be

paid

by

selle

r und

er se

ller’s

cont

ract

for

carri

age.

Pay a

ll cos

ts rel

ating

to im

port

form

alitie

s, du

ties,

fees,

and t

axes

. Pay

costs

of on

ward

carri

age.

7.N

otic

e to

Sel

ler—

If, a

ccor

ding

to th

e sa

les c

ontra

ct,

the

buye

r is e

ntitl

ed to

spec

ify a

tim

e fo

r shi

ppin

g or

the

poin

t of r

ecei

ving

the

ship

men

t at t

he n

amed

por

tof

des

tinat

ion,

to g

ive s

elle

r suf

ficie

nt n

otic

e.8.

Proo

f of D

eliv

ery—

Acc

ept t

he se

ller’s

del

iver

y do

c-um

ent i

f it i

s in

conf

orm

ity w

ith th

e sal

es co

ntra

ct.

9.In

spec

tion(

s)—

Pay

for p

re-s

hipm

ent i

nspe

ctio

ns u

n-le

ss su

ch is

requ

ired

by th

e cou

ntry

of e

xpor

t.10

.Oth

er—

Tim

ely ad

vise

the s

eller

of a

ny se

curit

y-re

lated

data

requ

irem

ents.

Reim

burse

the s

eller

for s

eller

’s co

stsre

lated

to s

ecur

ing

info

rmati

on o

r do

cum

entat

ion,

in-

cludi

ng se

curit

y in

form

ation

, tha

t the

buy

er re

quire

s for

impo

rt fo

rmali

ties,

secu

rity

clear

ance

, and

tran

spor

t of

the g

oods

to th

e fin

al de

stina

tion.

Tim

ely p

rovi

de th

e sell

er, at

the s

eller

’s re

ques

t and

cost,

with

any

doc

umen

ts an

d in

form

ation

requ

ired

for e

x-po

rt, tr

ansp

ort, a

nd se

curit

y cle

aran

ce o

f the

good

s to

the

nam

ed po

rt of

desti

natio

n.



CPT

Car

riage

Pai

d To

(. .

. nam

ed p

lace

of d

estin

atio

n)

CPT

, Car

riage

Pai

d To

(. .

. nam

ed p

lace

of d

estin

atio

n)In

Car

riage

Paid

To,

the

sell

er/ex

porte

r/man

ufac

ture

rcle

ars t

he g

oods

for e

xpor

t and

is re

spon

sible

for d

elive

r-in

g th

e go

ods

to th

e ca

rrier

at a

n ag

reed

-upo

n pl

ace

ofsh

ipm

ent (

not t

he d

estin

ation

). Th

is is

whe

re ri

sk p

asse

sfro

m se

ller t

o bu

yer.

The

selle

r, ho

wev

er, is

resp

onsib

le fo

r con

tracti

ng fo

r and

payi

ng th

e cos

ts as

socia

ted w

ith tr

ansp

ort o

f the

good

s to t

he“n

amed

plac

e of

des

tinati

on.”

This

is w

here

cos

ts tra

nsfe

rfro

m se

ller t

o buy

er.It

is im

porta

nt to

not

e tha

t the

tran

sfer o

f risk

from

selle

r to

buye

r occ

urs a

t a d

iffer

ent p

oint

than

the t

rans

fer o

f cos

ts.W

hen

usin

g th

e CPT

term

, it i

s adv

isabl

e to

clea

rly sp

ec-

ify in

the c

ontra

ct o

f sal

e and

in co

ntra

cts o

f car

riage

, not

only

the

nam

ed p

lace

of d

estin

atio

n, b

ut a

lso th

e pr

ecise

poin

t at o

r with

in th

e nam

ed p

lace

of d

estin

atio

n.Th

e CPT

term

may

be u

sed

for a

ny m

ode o

f tra

nspo

rt in

-cl

udin

g m

ultim

odal

.In

CPT

, the

nam

ed p

lace

of d

estin

atio

n is

dom

estic

to th

ebu

yer.

The

CPT

term

is o

ften

used

in sa

les w

here

the

ship

men

tis

by ai

r fre

ight

, con

tain

eriz

ed o

cean

frei

ght,

cour

ier s

hip-

men

ts of

sm

all p

arce

ls, a

nd in

“ro

-ro”

(roll-

on, r

oll-o

ff)sh

ipm

ents

of m

otor

veh

icle

s.If

mor

e th

an o

ne c

arrie

r is

used

for c

arria

ge to

the

nam

edpl

ace

of d

estin

ation

, suc

h as

in m

ultim

odal

ship

men

ts, th

eris

k pa

sses

whe

n th

e go

ods h

ave

been

deli

vere

d to

the

first

carri

er.

Exa

mp

les

CPT,

ABC

Rai

l Ter

min

al, M

adrid

, Spa

inCP

T, X

YZ

Barg

e Ter

min

al, F

rank

furt

AM

, Ger

man

y

Mo

des

of

Tra

nsp

ort

Air

—Ye

sR

ail—

Yes

Roa

d—Ye

sSe

a—Ye

sIn

land

Wat

erw

ay—

Yes

Mul

timod

al—

Yes

Selle

r/Ex

porte

rN

amed

Pla

ce

Exp

ort

Doc

umen

ts,

Form

aliti

es,

and

Fees

Pre

-Car

riage

to

Nam

ed

Pla

ce, N

ot

Unl

oade

d

Del

iver

yat

Nam

ed

Pla

ce/P

ort,

Unl

oade

d

Load

ing

at N

amed

Pla

ce/P

ort

of S

hipm

ent

Load

edO

n B

oard

Shi

p or

Vess

el

Tran

spor

t by

Air,

Rai

l, R

oad,

W

ater

, or

Mul

timod

al

On

Boa

rd

Shi

p or

Ve

ssel

, Not

U

nloa

ded

Dis

char

ging

(u

nloa

ding

) at

Nam

ed P

lace

/Por

t of

Des

tinat

ion

Del

iver

y at

N

amed

Pla

ce/

Term

inal

Onw

ard

Car

riage

to

Nam

ed P

lace

, N

ot U

nloa

ded

Impo

rt D

ocum

ents

, Fo

rmal

ities

, an

d D

utie

s

Buy

er/

Impo

rter

Nam

ed P

lace

, U

nloa

ded

CA

RR

IAG

E

RIS

KS

CO

STS

SELL

ERB

UYE

R

ASUS

Highlight

ASUS

Highlight

ASUS

Highlight

ASUS

Highlight

ASUS

Highlight

ASUS

Highlight



CPT

Car

riage

Pai

d To

(. .

. nam

ed p

lace

of d

estin

atio

n)

Inco

term

Cat

egor

yCa

rriag

e Pa

id T

o is

a “C

” ter

m sp

ecify

ing

that

the

selle

r is

resp

onsib

le fo

r con

tracti

ng a

nd p

ayin

g fo

r car

riage

to th

e“n

amed

plac

e of d

estin

ation

.”“C

” ter

ms

evid

ence

“sh

ipm

ent”

(as

oppo

sed

to “

arriv

al”)

cont

racts

.N

ote:

Doc

umen

ts m

ay b

e pa

per o

r ele

ctro

nic,

as c

usto

m-

ary

or as

agre

ed to

by

the p

artie

s to

the t

rans

actio

n.M

odes

of T

rans

port

Cov

ered

All

mod

es o

f tra

nspo

rt in

cludi

ng m

ultim

odal.

Selle

r’s R

espo

nsib

ilitie

s (s

umm

ary)

1.G

oods

—Pr

ovid

e the

goo

ds, c

omm

erci

al in

voic

e, an

dot

her d

ocum

enta

tion

as re

quire

d by

the s

ales

cont

ract

.2.

Lice

nses

, Se

curi

ty,

and

Cus

tom

s Fo

rmal

ities

—O

btain

at o

wn

risk

and

cost

all re

quire

d ex

port

licen

ses,

docu

men

ts, an

d au

thor

izatio

ns an

d ca

rry o

ut ex

port

for-

mali

ties

and

proc

edur

es a

s w

ell a

s th

ose

requ

ired

for

trans

ship

men

t thr

ough

any c

ount

ry pr

ior t

o deli

very

.3.

Car

riag

e an

d In

sura

nce—

Cont

ract

or

proc

ure

aco

ntra

ct fo

r the

car

riage

of t

he g

oods

from

the

poin

tof

del

iver

y to

the n

amed

pla

ce o

f des

tinat

ion.

N

o ob

ligati

on to

pro

vide

insur

ance

. Pro

vide

info

rmati

onto

enab

le th

e buy

er to

obtai

n ins

uran

ce.

4.D

eliv

ery—

Deli

ver t

he g

oods

to th

e (fir

st) ca

rrier

at th

ena

med

plac

e of s

hipm

ent (

not p

lace o

f des

tinati

on).

5.R

isk T

rans

fer—

Ass

ume

all r

isks o

f los

s or d

amag

eto

the

good

s un

til th

ey h

ave

been

del

iver

ed to

the

(firs

t) ca

rrier

at

the

plac

e of

shi

pmen

t, w

ithin

the

agre

ed-u

pon

time s

tipul

ated

in th

e sal

es co

ntra

ct.

6.C

osts

—Pa

y all c

osts

until

the g

oods

have

been

deliv

ered

to th

e (fir

st) ca

rrier

at th

e nam

ed pl

ace o

f shi

pmen

t. Pay

all

costs

of l

oadin

g an

d ca

rriag

e to

the n

amed

plac

e of d

esti-

natio

n. Pa

y co

sts o

f unl

oadi

ng if

unl

oadi

ng is

inclu

ded

inth

e con

tract

for m

ain ca

rriag

e. Pa

y all

costs

relat

ing

to ex

-po

rt, in

cludi

ng c

usto

ms f

orm

alitie

s, du

ties,

and

taxes

, as

well

as

costs

req

uired

for

tran

sshi

pmen

t thr

ough

any

coun

try up

to th

e nam

ed pl

ace o

f des

tinati

on.

7.N

otic

e to

the

Buye

r—Pr

ovid

e tim

ely

notic

e tha

t the

good

s ha

ve b

een

deliv

ered

to th

e (fi

rst)

carri

er a

ndno

tice

that

ena

bles

the

buye

r to

take

tim

ely

poss

es-

sion

of th

e goo

ds at

the n

amed

pla

ce o

f des

tinat

ion.

8.D

eliv

ery

and

Tran

spor

t D

ocum

ents

—Pr

ovid

e the

buye

r with

a tra

nspo

rt do

cum

ent,

dated

with

in th

e per

iod

agree

d, th

at all

ows

the

buye

r to

claim

the

good

s at

the

nam

ed p

lace o

f des

tinati

on an

d (u

nles

s oth

erwise

agree

d)all

ows t

he b

uyer

to se

ll th

e goo

ds w

hile

in tra

nsit

thro

ugh

the

trans

fer o

f the

doc

umen

t or b

y no

tifica

tion

to th

e se

aca

rrier.

If a

nego

tiabl

e tran

spor

t doc

umen

t is i

ssue

d, a f

ull

set o

f orig

inals

mus

t be g

iven

to th

e buy

er.9.

Che

ckin

g, P

acki

ng, M

arki

ng—

Pay

all co

sts as

soci-

ated

with

chec

king

the q

ualit

y an

d qu

antit

y of

the g

oods

to b

e in

conf

orm

ity w

ith th

e sale

s con

tract.

Pro

vide

pre

-sh

ipm

ent i

nspe

ction

s as r

equi

red

for e

xpor

t for

mali

ties.

Pack

age t

he g

oods

, unl

ess t

he g

oods

are c

onve

ntio

nally

sold

unp

acka

ged.

Pack

age t

he g

oods

as th

e sell

er d

eem

sap

prop

riate

for t

rans

port,

unles

s the

buye

r has

give

n spe

-cif

ic re

quire

men

ts pr

ior t

o th

e fin

aliza

tion

of th

e sa

lesco

ntra

ct. P

rovi

de m

arki

ng ap

prop

riate

to th

e pac

kagi

ng.

10.O

ther

—Ti

mely

prov

ide t

he bu

yer, a

t the b

uyer

’s req

uest

and

cost,

ass

istan

ce in

sec

uring

info

rmati

on a

nd d

ocu-

men

ts, in

cludi

ng s

ecur

ity in

form

ation

, req

uire

d by

the

buye

r fo

r im

port

and

trans

port

of th

e go

ods

from

the

nam

ed pl

ace t

o th

e fin

al de

stina

tion.

Reim

burse

the b

uyer

for b

uyer

’s co

sts re

lated

to se

curin

g inf

orm

ation

and d

ocu-

men

tatio

n, in

cludi

ng s

ecur

ity in

form

ation

the

selle

r re-

quire

s for

expo

rt fo

rmali

ties,

trans

port,

secu

rity

cleara

nce,

and t

ranss

hipm

ent to

the n

amed

plac

e of d

estin

ation

. B

uyer

’s R

espo

nsib

ilitie

s (s

umm

ary)

1.Pa

ymen

t—Pa

y fo

r the

goo

ds as

pro

vide

d in

the s

ales

cont

ract

.

2.Li

cens

es,

Secu

rity

, an

d C

usto

ms

Form

aliti

es—

Obt

ain

any

impo

rt lic

ense

s or a

utho

rizat

ions

and

han-

dle a

ll im

port

form

aliti

es.

3.C

arri

age

and

Insu

ranc

e—Th

e bu

yer h

as n

o ob

li-ga

tion

to se

ller f

or ca

rriag

e or i

nsur

ance

.4.

Taki

ng D

eliv

ery—

Take

deli

very

of t

he g

oods

at t

hena

med

plac

e of d

estin

ation

as p

rovi

ded

in th

e con

tract.

5.R

isk T

rans

fer—

Ass

ume

all r

isk o

f los

s or

dam

age

from

the

time

the

good

s ha

ve b

een

deliv

ered

to th

e(fi

rst)

carri

er at

the p

lace

of s

hipm

ent.

6.C

osts

—Pa

y co

sts o

ther

than

main

car

riage

afte

r th

ego

ods

have

bee

n de

liver

ed to

the

(first

) ca

rrier

at t

hepl

ace o

f shi

pmen

t. Suc

h cos

ts in

clude

unlo

adin

g, lig

hter

-ag

e, an

d wha

rfage

at th

e plac

e of d

estin

ation

unles

s suc

hco

sts w

ere t

o be

paid

by

selle

r und

er se

ller’s

cont

ract

for

carri

age.

Pay

all co

sts re

latin

g to

impo

rt fo

rmali

ties,

du-

ties,

fees

, and

taxe

s. Pa

y cos

ts of

onw

ard c

arria

ge.

7.N

otic

e to

Sel

ler—

If, a

ccor

ding

to th

e sa

les c

ontra

ct,

the

buye

r is e

ntitl

ed to

spec

ify a

tim

e or

poi

nt o

f tak

-in

g de

liver

y at

the n

amed

pla

ce o

f des

tinat

ion,

to g

ive

selle

r suf

ficie

nt n

otic

e.8.

Proo

f of D

eliv

ery—

Acc

ept t

he se

ller’s

del

iver

y do

c-um

ent i

f it i

s in

conf

orm

ity w

ith th

e sal

es co

ntra

ct.

9.In

spec

tion(

s)—

Pay

for p

re-s

hipm

ent i

nspe

ctio

ns u

n-le

ss su

ch is

requ

ired

by th

e cou

ntry

of e

xpor

t.10

.Oth

er—

Tim

ely ad

vise

the s

eller

of a

ny se

curit

y-re

lated

data

requ

irem

ents.

Reim

burse

the s

eller

for s

eller

’s co

stsre

lated

to s

ecur

ing

info

rmati

on o

r do

cum

entat

ion,

in-

cludi

ng se

curit

y in

form

ation

, tha

t the

buy

er re

quire

s for

impo

rt fo

rmali

ties,

secu

rity

clear

ance

, and

tran

spor

t of

the g

oods

to th

e fin

al de

stina

tion.

Tim

ely p

rovi

de th

e sell

er, at

the s

eller

’s re

ques

t and

cost,

with

any

doc

umen

ts an

d in

form

ation

requ

ired

for e

x-po

rt, tr

ansp

ort, a

nd se

curit

y cle

aran

ce o

f the

good

s to

the

nam

ed pl

ace o

f des

tinati

on.



SELL

ERB

UYE

RC

IPC

arria

ge a

nd In

sura

nce

Paid

To

(. . .

nam

ed p

lace

of d

estin

atio

n)

CIP

, Car

riage

and

Insu

ranc

e Pa

id T

o (.

. . n

amed

pla

ce o

f des

tinat

ion)

In C

arria

ge a

nd I

nsur

ance

Paid

To,

the

sell

er/ex

porte

r/m

anuf

actu

rer c

lears

the g

oods

for e

xpor

t and

is re

spon

sible

for d

elive

ring

the

good

s to

the

carri

er a

t an

agre

ed-u

pon

plac

e of

ship

men

t (no

t the

des

tinati

on).

This

is w

here

risk

pass

es fr

om se

ller t

o bu

yer.

The

selle

r, ho

wev

er, is

resp

onsib

le fo

r con

tracti

ng fo

r and

payi

ng th

e cos

ts as

socia

ted w

ith tr

ansp

ort o

f the

goo

ds a

ndm

inim

um co

ver i

nsur

ance

to th

e “na

med

plac

e of d

estin

a-tio

n.” T

his i

s whe

re co

sts tr

ansfe

r fro

m se

ller t

o buy

er.It

is im

porta

nt to

not

e tha

t the

tran

sfer o

f risk

from

selle

r to

buye

r occ

urs a

t a d

iffer

ent p

oint

than

the t

rans

fer o

f cos

ts.W

hen

usin

g th

e CI

P te

rm, i

t is a

dvisa

ble

to c

lear

ly sp

ec-

ify in

the c

ontra

ct o

f sal

e and

in co

ntra

cts o

f car

riage

, not

only

the

nam

ed p

lace

of d

estin

atio

n, b

ut a

lso th

e pr

ecise

poin

t at o

r with

in th

e nam

ed p

lace

of d

estin

atio

n.Th

e CI

P te

rm m

ay b

e us

ed fo

r any

mod

e of t

rans

port

in-

clud

ing

mul

timod

al.

In C

IP, t

he n

amed

pla

ce o

f des

tinat

ion

is do

mes

tic to

the

buye

r.Th

e CIP

term

is o

ften

used

in sa

les w

here

the s

hipm

ent i

sby

air

freig

ht, c

onta

iner

ized

oce

an fr

eigh

t, co

urie

r shi

p-m

ents

of s

mal

l par

cels,

and

in “

ro-ro

” (ro

ll-on

, rol

l-off)

ship

men

ts of

mot

or v

ehic

les.

If m

ore

than

one

car

rier i

s use

d fo

r car

riage

to th

e na

med

plac

e of

des

tinati

on, s

uch

as in

mul

timod

al sh

ipm

ents,

the

risk

pass

es w

hen

the

good

s hav

e be

en d

elive

red

to th

e fir

stca

rrier.

Exa

mp

les

CIP,

ABC

Rai

l Ter

min

al, S

idin

g C,

Mad

rid, S

pain

CIP,

XY

Z Ba

rge T

ermin

al, D

ock A

, Fran

kfur

t AM

, Germ

any

Mo

des

of

Tra

nsp

ort

Air

—Ye

sR

ail—

Yes

Roa

d—Ye

sSe

a—Ye

sIn

land

Wat

erw

ay—

Yes

Mul

timod

al—

Yes

Selle

r/Ex

porte

rN

amed

Pla

ce

Exp

ort

Doc

umen

ts,

Form

aliti

es,

and

Fees

Pre

-Car

riage

to

Nam

ed

Pla

ce, N

ot

Unl

oade

d

Del

iver

yat

Nam

ed

Pla

ce/P

ort,

Unl

oade

d

Load

ing

at N

amed

Pla

ce/P

ort

of S

hipm

ent

Load

edO

n B

oard

Shi

p or

Vess

el

Tran

spor

t by

Air,

Rai

l, R

oad,

W

ater

, or

Mul

timod

al

On

Boa

rd

Shi

p or

Ve

ssel

, Not

U

nloa

ded

Dis

char

ging

(u

nloa

ding

) at

Nam

ed P

lace

/Por

t of

Des

tinat

ion

Del

iver

y at

N

amed

Pla

ce/

Term

inal

Onw

ard

Car

riage

to

Nam

ed P

lace

, N

ot U

nloa

ded

Impo

rt D

ocum

ents

, Fo

rmal

ities

, an

d D

utie

s

Buy

er/

Impo

rter

Nam

ed P

lace

, U

nloa

ded

CA

RR

IAG

E

RIS

KS

CO

STS

ASUS

Highlight

ASUS

Highlight



CIP

Car

riage

and

Insu

ranc

e Pa

id T

o (.

. . n

amed

pla

ce o

f des

tinat

ion)

In

cote

rm C

ateg

ory

Carri

age

and

Insu

ranc

e Pa

id T

o is

a “C

” ter

m s

pecif

ying

that

the

selle

r is r

espo

nsib

le fo

r con

tracti

ng a

nd p

ayin

g fo

rca

rriag

e and

insu

ranc

e to

the “

nam

ed p

lace o

f des

tinati

on.”

“C”

term

s ev

iden

ce “

ship

men

t” (a

s op

pose

d to

“ar

rival”

)co

ntra

cts.

Not

e: D

ocum

ents

may

be

pape

r or e

lect

roni

c, as

cus

tom

-ar

y or

as ag

reed

to b

y th

e par

ties t

o th

e tra

nsac

tion.

Mod

es o

f Tra

nspo

rt C

over

edA

ll m

odes

of t

rans

port

inclu

ding

mul

timod

al.Se

ller’s

Res

pons

ibili

ties

(sum

mar

y)1.

Goo

ds—

Prov

ide t

he g

oods

, com

mer

cial

invo

ice,

and

othe

r doc

umen

tatio

n as

requ

ired

by th

e sal

es co

ntra

ct.

2.Li

cens

es,

Secu

rity

, an

d C

usto

ms

Form

aliti

es—

Obt

ain at

ow

n ris

k an

d co

st all

requ

ired

expo

rt lic

ense

s,do

cum

ents,

and

auth

oriza

tions

and

carry

out

expo

rt fo

r-m

alitie

s an

d pr

oced

ures

as

well

as

thos

e re

quire

d fo

rtra

nssh

ipm

ent t

hrou

gh an

y cou

ntry

prio

r to d

elive

ry.

3.C

arri

age

and

Insu

ranc

e—Co

ntra

ct o

r pr

ocur

e a

cont

ract

for t

he c

arria

ge o

f the

goo

ds fr

om th

e po

int

of d

eliv

ery

to th

e na

med

pla

ce o

f des

tinat

ion.

Obta

inan

d pa

y fo

r m

inim

um c

over

carg

o in

suran

ce (

Insti

tute

Carg

o Clau

ses,

Clau

se “C

” cov

erage

) fro

m a

reput

able

in-

suran

ce co

mpa

ny o

r und

erwrit

er. In

suran

ce m

ust p

rovi

deco

verag

e at l

east

to th

e nam

ed p

lace o

f des

tinati

on, e

ntitl

eth

e buy

er to

mak

e a cl

aim d

irectl

y to

the i

nsur

er, b

e for

am

inim

um o

f 110

% o

f the

cont

ract a

mou

nt, a

nd b

e in

the

curre

ncy

of th

e sa

les co

ntrac

t. Pr

ovide

the

buye

r with

an

insu

rance

pol

icy o

r evi

denc

e of i

nsur

ance

. Pro

vide

info

r-m

ation

to en

able

the b

uyer

to ob

tain a

dditi

onal

insu

rance

.4.

Del

iver

y—D

elive

r the

goo

ds to

the (

first)

carri

er at

the

nam

ed pl

ace o

f shi

pmen

t (no

t plac

e of d

estin

ation

).5.

Risk

Tra

nsfe

r—A

ssum

e al

l risk

s of l

oss o

r dam

age

to th

e go

ods

until

they

hav

e be

en d

eliv

ered

to th

e(fi

rst)

carri

er a

t th

e pl

ace

of s

hipm

ent,

with

in t

heag

reed

-upo

n tim

e stip

ulat

ed in

the s

ales

cont

ract

.6.

Cos

ts—

Pay a

ll cos

ts un

til th

e goo

ds ha

ve be

en de

livere

d

to th

e (fir

st) ca

rrier

at th

e nam

ed pl

ace o

f shi

pmen

t. Pay

all

costs

of l

oadi

ng an

d ca

rriag

e to

the n

amed

plac

e of d

esti-

natio

n. Pa

y fo

r ins

uran

ce a

s des

cribe

d in

#3

abov

e. Pa

yco

sts o

f unlo

ading

if u

nloa

ding

is in

clude

d in

the c

ontra

ctfo

r main

carri

age.

Pay

all co

sts re

latin

g to

expo

rt, in

clud-

ing

custo

ms f

orm

alitie

s, du

ties,

taxes

, as w

ell as

costs

re-

quire

d fo

r tra

nssh

ipmen

t thr

ough

any

cou

ntry

up to

the

nam

ed pl

ace o

f des

tinati

on.

7.N

otic

e to

the

Buye

r—Pr

ovid

e tim

ely

notic

e tha

t the

good

s ha

ve b

een

deliv

ered

to th

e (fi

rst)

carri

er a

ndno

tice

that

ena

bles

the

buye

r to

take

tim

ely

poss

es-

sion

of th

e goo

ds at

the n

amed

pla

ce o

f des

tinat

ion.

8.D

eliv

ery

and

Tran

spor

t D

ocum

ents

—Pr

ovid

e the

buye

r with

a tra

nspo

rt do

cum

ent,

dated

with

in th

e per

iod

agree

d, th

at all

ows

the

buye

r to

claim

the

good

s at

the

nam

ed p

lace o

f des

tinati

on an

d (u

nles

s oth

erwise

agree

d)all

ows t

he b

uyer

to se

ll th

e goo

ds w

hile

in tra

nsit

thro

ugh

the

trans

fer o

f the

doc

umen

t or b

y no

tifica

tion

to th

e se

aca

rrier.

If a

nego

tiabl

e tran

spor

t doc

umen

t is i

ssue

d, a f

ull

set o

f orig

inals

mus

t be g

iven

to th

e buy

er.9.

Che

ckin

g, P

acki

ng, M

arki

ng—

Pay

all co

sts as

soci-

ated

with

chec

king

the q

ualit

y an

d qu

antit

y of

the g

oods

to b

e in

conf

orm

ity w

ith th

e sale

s con

tract.

Pro

vide

pre

-sh

ipm

ent i

nspe

ction

s as r

equi

red

for e

xpor

t for

mali

ties.

Pack

age t

he g

oods

, unl

ess t

he g

oods

are c

onve

ntio

nally

sold

unp

acka

ged.

Pack

age t

he g

oods

as th

e sell

er d

eem

sap

prop

riate

for t

rans

port,

unles

s the

buye

r has

give

n spe

-cif

ic re

quire

men

ts pr

ior t

o th

e fin

aliza

tion

of th

e sa

lesco

ntra

ct. P

rovi

de m

arki

ng ap

prop

riate

to th

e pac

kagi

ng.

10.O

ther

—Ti

mely

prov

ide t

he bu

yer, a

t the b

uyer

’s req

uest

and

cost,

ass

istan

ce in

sec

uring

info

rmati

on a

nd d

ocu-

men

ts, in

cludi

ng s

ecur

ity in

form

ation

, req

uire

d by

the

buye

r fo

r im

port

and

trans

port

of th

e go

ods

from

the

nam

ed pl

ace t

o th

e fin

al de

stina

tion.

Reim

burse

the b

uyer

for b

uyer

’s co

sts re

lated

to se

curin

g inf

orm

ation

and d

ocu-

men

tatio

n, in

cludi

ng s

ecur

ity in

form

ation

the

selle

r re-

quire

s for

expo

rt fo

rmali

ties,

trans

port,

secu

rity

cleara

nce,

and t

ranss

hipm

ent to

the n

amed

plac

e of d

estin

ation

.

Buy

er’s

Res

pons

ibili

ties

(sum

mar

y)1.

Paym

ent —

Pay

for t

he g

oods

as p

rovi

ded

in th

e sal

esco

ntra

ct.

2.Li

cens

es,

Secu

rity

, an

d C

usto

ms

Form

aliti

es—

Obt

ain

any

impo

rt lic

ense

s or a

utho

rizat

ions

and

han-

dle a

ll im

port

form

aliti

es.

3.C

arri

age a

nd In

sura

nce—

No

oblig

atio

n to

selle

r.4.

Taki

ng D

eliv

ery—

Take

deli

very

of t

he g

oods

at t

hena

med

plac

e of d

estin

ation

as p

rovi

ded

in th

e con

tract.

5.R

isk T

rans

fer—

Ass

ume

all r

isk o

f los

s or

dam

age

from

the

time

the

good

s ha

ve b

een

deliv

ered

to th

e(fi

rst)

carri

er at

the p

lace

of s

hipm

ent.

6.C

osts

—Pa

y an

y ad

ditio

nal c

osts

for t

he g

oods

, oth

erth

an m

ain ca

rriag

e, on

ce th

ey h

ave b

een

deliv

ered

to th

e(fi

rst) c

arrie

r at th

e plac

e of s

hipm

ent. S

uch c

osts

inclu

deun

load

ing,

light

erag

e, an

d wha

rfage

at th

e plac

e of d

esti-

natio

n un

less s

uch

costs

wer

e to

be p

aid b

y se

ller u

nder

selle

r’s co

ntra

ct fo

r car

riage

. Pay

all c

osts

relat

ing

to im

-po

rt fo

rmali

ties,

dutie

s, fe

es, a

nd ta

xes.

Pay

costs

of o

n-w

ard c

arria

ge.

7.N

otic

e to

Sel

ler—

If, a

ccor

ding

to th

e sa

les c

ontra

ct,

the

buye

r is e

ntitl

ed to

spec

ify a

tim

e or

poi

nt o

f tak

-in

g de

liver

y at

the n

amed

pla

ce o

f des

tinat

ion,

to g

ive

selle

r suf

ficie

nt n

otic

e.8.

Proo

f of D

eliv

ery—

Acc

ept t

he se

ller’s

del

iver

y do

c-um

ent i

f it i

s in

conf

orm

ity w

ith th

e sal

es co

ntra

ct.

9.In

spec

tion(

s)—

Pay

for p

re-s

hipm

ent i

nspe

ctio

ns u

n-le

ss su

ch is

requ

ired

by th

e cou

ntry

of e

xpor

t.10

.Oth

er—

Tim

ely ad

vise

the s

eller

of a

ny se

curit

y-re

lated

data

requ

irem

ents.

Reim

burse

the s

eller

for s

eller

’s co

stsre

lated

to s

ecur

ing

info

rmati

on o

r do

cum

entat

ion,

in-

cludi

ng se

curit

y in

form

ation

, tha

t the

buy

er re

quire

s for

impo

rt fo

rmali

ties,

secu

rity

clear

ance

, and

tran

spor

t of

the g

oods

to th

e fin

al de

stina

tion.

At t

he se

ller’s

requ

est a

nd c

ost,

prov

ide

the

selle

r with

any

docu

men

ts an

d in

form

ation

req

uire

d fo

r ex

port,

trans

port,

and

sec

urity

clea

ranc

e of

the

goo

ds t

o th

ena

med

plac

e of d

estin

ation

.



DAT

Deliv

ered

At T

erm

inal

(. . .

nam

ed te

rmin

al a

t por

t or p

lace

of d

estin

atio

n)

DAT

, Del

iver

ed A

t Ter

min

al (.

. . n

amed

term

inal

at p

ort o

r pla

ce o

f des

tinat

ion)

In D

eliv

ered

At T

erm

inal

, the

sel

ler/e

xpor

ter/m

anuf

ac-

ture

r cl

ears

the

good

s fo

r ex

port

and

is re

spon

sible

for

thei

r del

iver

y to

the

“nam

ed te

rmin

al a

t por

t or p

lace

of

desti

natio

n.”

In D

AT, t

he se

ller m

akes

the g

oods

avai

labl

e to

the b

uyer

unlo

aded

from

the a

rrivi

ng m

eans

of t

rans

port.

The t

erm

inal

can

be o

f any

sort:

a se

a, ro

ad, a

ir, o

r rai

l ter

-m

inal

; a w

areh

ouse

, a q

uay,

or c

onta

iner

yar

d; a

nd c

ov-

ered

or u

ncov

ered

.W

hen u

sing t

he D

AT te

rm, it

is ad

visa

ble t

o cle

arly

spec

ifyin

the c

ontra

ct of

sale

and

in co

ntra

cts o

f car

riage

, not

onl

yth

e ter

min

al by

nam

e, bu

t also

the p

recis

e poi

nt at

or w

ithin

the t

erm

inal

at th

e nam

ed p

ort o

r plac

e of d

estin

ation

.In

DAT

, the

nam

ed te

rmin

al a

t por

t or p

lace

of d

estin

a-

tion

is do

mes

tic to

the b

uyer

.Th

e DAT

term

may

be u

sed

for a

ny m

ode o

f tra

nspo

rt in

-cl

udin

g m

ultim

odal

.A

ll fo

rms o

f pay

men

t are

use

d in

DAT

tran

sact

ions

.Th

e DAT

term

is id

eal f

or m

ultim

odal

tran

spor

t.D

AT is

the

only

term

und

er w

hich

the

selle

r is r

espo

nsi-

ble f

or u

nloa

ding

.

Exa

mp

les

DAT

, Ter

min

al X

YZ,

Cha

rles

de G

aulle

Airp

ort,

Paris

,Fr

ance

DAT

, Sea

Ter

min

al A

BC, P

ort o

f New

Yor

k, U

SA

Mo

des

of

Tra

nsp

ort

Air

—Ye

sR

ail—

Yes

Roa

d—Ye

sSe

a—Ye

sIn

land

Wat

erw

ay—

Yes

Mul

timod

al—

Yes

Selle

r/Ex

porte

rN

amed

Pla

ce

Exp

ort

Doc

umen

ts,

Form

aliti

es,

and

Fees

Pre

-Car

riage

to

Nam

ed

Pla

ce, N

ot

Unl

oade

d

Del

iver

yat

Nam

ed

Pla

ce/P

ort,

Unl

oade

d

Load

ing

at N

amed

Pla

ce/P

ort

of S

hipm

ent

Load

edO

n B

oard

Shi

p or

Vess

el

Tran

spor

t by

Air,

Rai

l, R

oad,

W

ater

, or

Mul

timod

al

On

Boa

rd

Shi

p or

Ve

ssel

, Not

U

nloa

ded

Dis

char

ging

(u

nloa

ding

) at

Nam

ed P

lace

/Por

t of

Des

tinat

ion

Del

iver

y at

N

amed

Pla

ce/

Term

inal

Onw

ard

Car

riage

to

Nam

ed P

lace

, N

ot U

nloa

ded

Impo

rt D

ocum

ents

, Fo

rmal

ities

, an

d D

utie

s

Buy

er/

Impo

rter

Nam

ed P

lace

, U

nloa

ded

CA

RR

IAG

E

RIS

KS

CO

STS

SELL

ERB

UYE

R

ASUS

Highlight

ASUS

Highlight

ASUS

Highlight

ASUS

Highlight



DAT

Del

iver

ed A

t Ter

min

al (.

. . n

amed

term

inal

at p

ort o

r pla

ce o

f des

tinat

ion)

In

cote

rm C

ateg

ory

Del

iver

ed A

t Ter

min

al is

a “

D”

term

spe

cify

ing

that

the

selle

r is

resp

onsib

le fo

r all

costs

ass

ocia

ted

with

del

iver

-in

g th

e go

ods t

o th

e “n

amed

term

inal

at t

he p

ort o

r pla

ceof

des

tinat

ion,

” exc

ludi

ng im

port

custo

ms f

orm

aliti

es, d

u-tie

s, fe

es, a

nd ta

xes.

“D”

term

s evi

denc

e “a

rriva

l” (a

s opp

osed

to “

ship

men

t”)

cont

ract

s.N

ote:

Doc

umen

ts m

ay b

e pa

per o

r ele

ctro

nic,

as c

usto

m-

ary

or as

agre

ed to

by

the p

artie

s to

the t

rans

actio

n.M

odes

of T

rans

port

Cov

ered

All

mod

es o

f tra

nspo

rt in

cludi

ng m

ultim

odal.

Selle

r’s R

espo

nsib

ilitie

s (s

umm

ary)

1.G

oods

—Pr

ovid

e the

goo

ds, c

omm

erci

al in

voic

e, an

dot

her d

ocum

enta

tion

as re

quire

d by

the s

ales

cont

ract

.2.

Lice

nses

, Se

curi

ty,

and

Cus

tom

s Fo

rmal

ities

—O

btain

at o

wn

risk

and

cost

all re

quire

d ex

port

licen

ses,

docu

men

ts, an

d au

thor

izatio

ns an

d ca

rry o

ut ex

port

for-

mali

ties

and

proc

edur

es a

s w

ell a

s th

ose

requ

ired

for

trans

ship

men

t thr

ough

any c

ount

ry pr

ior t

o deli

very

.3.

Car

riag

e an

d In

sura

nce—

Cont

ract

and

pay

for t

heca

rriag

e of t

he g

oods

to th

e nam

ed te

rmin

al at

por

t or

plac

e of

des

tinat

ion.

No

oblig

atio

n to

the b

uyer

to se

-cu

re a

con

tract

of i

nsur

ance

. At t

he b

uyer

’s re

ques

tan

d co

st, p

rovi

de in

form

atio

n to

ena

ble

the

buye

r to

obta

in in

sura

nce.

4.D

eliv

ery—

Mak

e th

e go

ods

avai

labl

e to

the

buye

r,un

load

ed fr

om th

e ar

rivin

g m

eans

of t

rans

port,

at t

hena

med

term

inal

at p

ort o

r pla

ce o

f des

tinat

ion,

with

inth

e agr

eed-

upon

tim

e.5.

Risk

Tra

nsfe

r—A

ssum

e al

l risk

s of l

oss o

r dam

age

to th

e go

ods

until

they

hav

e be

en m

ade

avai

labl

e to

the b

uyer

, unl

oade

d fro

m th

e arri

ving

mea

ns o

f tra

ns-

port,

at th

e nam

ed te

rmin

al at

por

t or p

lace

of d

estin

a-tio

n, w

ithin

the a

gree

d-up

on ti

me.

6.C

osts

—Pa

y al

l cos

ts un

til th

e goo

ds h

ave b

een

mad

e

avai

labl

e to

the

buy

er,

unlo

aded

fro

m t

he a

rrivi

ngm

eans

of t

rans

port,

at t

he n

amed

term

inal

at p

ort o

rpl

ace

of d

estin

atio

n. P

ay a

ll co

sts re

latin

g to

exp

ort,

incl

udin

g ex

port

custo

ms f

orm

aliti

es, d

utie

s, fe

es, a

ndta

xes,

as w

ell

as t

hose

req

uire

d fo

r tra

nssh

ipm

ent

thro

ugh

any

coun

try p

rior t

o de

liver

y. Pa

y al

l cos

ts of

load

ing

and

carri

age

to th

e pl

ace

of d

estin

atio

n. P

ayfo

r cos

ts of

unl

oadi

ng th

e goo

ds at

term

inal

. 7.

Not

ice

to t

he B

uyer

—Pr

ovid

e tim

ely n

otice

that

en-

ables

the

buye

r to

take

pos

sessi

on o

f th

e go

ods

at the

nam

ed te

rmin

al at

port

or p

lace o

f des

tinati

on, w

ithin

the

agree

d-up

on tim

e.8.

Del

iver

y an

d Tr

ansp

ort D

ocum

ents

—Pr

ovid

e th

ebu

yer w

ith a

doc

umen

t tha

t will

allo

w th

e bu

yer t

ocl

aim

the g

oods

at th

e nam

ed te

rmin

al.

9.C

heck

ing,

Pac

king

, Mar

king

—Pa

y all

costs

asso

ci-ate

d w

ith ch

ecki

ng th

e qua

lity

and

quan

tity

of th

e goo

dsto

be i

n co

nfor

mity

with

the s

ales c

ontra

ct. P

rovi

de p

re-

ship

men

t ins

pecti

ons a

s req

uire

d fo

r exp

ort f

orm

alitie

s.Pa

ckag

e the

goo

ds, u

nles

s the

goo

ds ar

e con

vent

iona

llyso

ld u

npac

kage

d. Pa

ckag

e the

goo

ds as

the s

eller

dee

ms

appr

opria

te fo

r tra

nspo

rt, un

less t

he bu

yer h

as gi

ven s

pe-

cific

requ

irem

ents

prio

r to

the

finali

zatio

n of

the

sales

cont

ract.

Pro

vide

mar

king

appr

opria

te to

the p

acka

ging

.10

.Oth

er—

Tim

ely

prov

ide

the

buye

r, at

the

buye

r’s re

-qu

est a

nd co

st, as

sista

nce i

n se

curin

g in

form

atio

n an

ddo

cum

ents,

incl

udin

g se

curit

y in

form

atio

n, r

equi

red

by th

e bu

yer

for

impo

rt an

d tra

nspo

rt of

the

good

sfro

m th

e nam

ed te

rmin

al to

the f

inal

des

tinat

ion.

Re

imbu

rse

the

buye

r for

buy

er’s

costs

rela

ted

to s

e-cu

ring

info

rmat

ion

and

docu

men

tatio

n, in

clud

ing

se-

curit

y in

form

atio

n, t

he s

elle

r re

quire

s fo

r ex

port

form

aliti

es, t

rans

port,

sec

urity

cle

aran

ce, a

nd tr

ans-

ship

men

t to

the n

amed

term

inal

. B

uyer

’s R

espo

nsib

ilitie

s (s

umm

ary)

1.Pa

ymen

t—Pa

y fo

r the

goo

ds as

pro

vide

d in

the s

ales

cont

ract

.

2.Li

cens

es,

Secu

rity

, an

d C

usto

ms

Form

aliti

es—

Obt

ain

any

impo

rt lic

ense

s or a

utho

rizat

ions

and

han-

dle a

ll im

port

form

aliti

es.

3.C

arri

age

and

Insu

ranc

e—Bu

yer h

as n

o ob

ligat

ion

to th

e sel

ler f

or co

ntra

cts o

f car

riage

or i

nsur

ance

.4.

Taki

ng D

eliv

ery—

Take

deli

very

of t

he g

oods

at t

hena

med

term

inal

at po

rt or

plac

e of

des

tinati

on, a

s pro

-vi

ded

in th

e sale

s con

tract.

5.R

isk T

rans

fer—

Ass

ume

risk

of l

oss

or d

amag

efro

m th

e tim

e th

e go

ods

have

bee

n m

ade

avai

labl

e,un

load

ed, a

t the

nam

ed te

rmin

al at

the p

ort o

r pla

ce o

fde

stina

tion,

with

in th

e agr

eed-

upon

tim

e.6.

Cos

ts—

Pay

any

addi

tiona

l cos

ts af

ter t

he g

oods

hav

ebe

en m

ade

avai

labl

e at

the

nam

ed te

rmin

al a

t por

t or

plac

e of

des

tinat

ion,

with

in t

he a

gree

d-up

on t

ime.

Pay

costs

of i

mpo

rt cu

stom

s for

mal

ities

, dut

ies,

fees

,an

d ta

xes.

Pay

costs

of o

nwar

d ca

rriag

e.7.

Not

ice

to S

elle

r—If,

acc

ordi

ng to

the

sale

s con

tract

,th

e bu

yer i

s ent

itled

to sp

ecify

a ti

me

or p

oint

of t

ak-

ing

deliv

ery

at th

e nam

ed p

lace

of d

estin

atio

n, to

giv

ese

ller s

uffic

ient

not

ice.

8.Pr

oof o

f Del

iver

y—A

ccep

t the

selle

r’s d

eliv

ery

doc-

umen

t if i

t is i

n co

nfor

mity

with

the s

ales

cont

ract

.9.

Insp

ectio

n(s)

—Pa

y fo

r pre

-shi

pmen

t ins

pect

ions

un-

less

such

is re

quire

d by

the c

ount

ry o

f exp

ort.

10.O

ther

—Ti

mel

y ad

vise

the

selle

r of a

ny s

ecur

ity-re

-la

ted

data

req

uire

men

ts. R

eim

burs

e th

e se

ller

for

selle

r’s c

osts

rela

ted

to se

curin

g in

form

atio

n or

doc

u-m

enta

tion,

inc

ludi

ng s

ecur

ity i

nfor

mat

ion,

tha

t th

ebu

yer r

equi

res

for i

mpo

rt fo

rmal

ities

, sec

urity

cle

ar-

ance

, and

tran

spor

t of t

he g

oods

to th

e fin

al d

estin

a-tio

n.

Tim

ely p

rovi

de th

e sell

er, at

the s

eller

’s re

ques

t and

cost,

with

any

doc

umen

ts an

d in

form

ation

requ

ired

for e

x-po

rt, tr

ansp

ort, a

nd se

curit

y cle

aran

ce o

f the

good

s to

the

nam

ed te

rmin

al at

port

or pl

ace o

f des

tinati

on.

ASUS

Highlight

ASUS

Highlight



DA

PD

eliv

ered

At P

lace

(. .

. nam

ed p

lace

of d

estin

atio

n)

DA

P, D

eliv

ered

At P

lace

(. .

. nam

ed p

lace

of d

estin

atio

n)In

Del

iver

ed A

t Pla

ce, t

he s

elle

r/exp

orte

r/man

ufac

ture

rcl

ears

the g

oods

for e

xpor

t and

is re

spon

sible

for t

heir

de-

liver

y to

the “

nam

ed p

lace

of d

estin

atio

n.”

In D

AP,

the s

elle

r mak

es th

e goo

ds av

aila

ble t

o th

e buy

eron

the

arriv

ing

mea

ns o

f tra

nspo

rt at

the

nam

ed p

lace

of

desti

natio

n, n

ot u

nloa

ded.

Whe

n us

ing

the D

AP

term

, it i

s adv

isabl

e to

clea

rly sp

ec-

ify in

the c

ontra

ct o

f sal

e and

in co

ntra

cts o

f car

riage

, not

only

the

nam

ed p

lace

of d

estin

atio

n, b

ut a

lso th

e pr

ecise

poin

t at o

r with

in th

e nam

ed p

lace

of d

estin

atio

n.In

DA

P, th

e nam

ed p

lace

of d

estin

atio

n is

dom

estic

to th

ebu

yer a

nd is

ofte

n th

e buy

er’s

plac

e of b

usin

ess.

In D

AP,

the

selle

r is n

ot re

spon

sible

for i

mpo

rt cu

stom

sfo

rmal

ities

, dut

ies,

fees

, or t

axes

.

The D

AP

term

may

be u

sed

for a

ny m

ode o

f tra

nspo

rt in

-cl

udin

g m

ultim

odal

.A

ll fo

rms o

f pay

men

t are

use

d in

DA

P tra

nsac

tions

.Th

e DA

P te

rm is

idea

l for

mul

timod

al tr

ansp

ort.

All

form

s of p

aym

ent a

re u

sed

in D

AP

trans

actio

ns.

Exa

mp

les

DA

P, Sh

angh

ai F

ree

Trad

e Zo

ne, T

erm

inal

1, S

hang

hai,

Chin

aD

AP,

Custo

ms W

areh

ouse

, Por

t of S

tock

holm

, Sw

eden

Mo

des

of

Tra

nsp

ort

Air

—Ye

sR

ail—

Yes

Roa

d—Ye

sSe

a—Ye

sIn

land

Wat

erw

ay—

Yes

Mul

timod

al—

Yes

Selle

r/Ex

porte

rN

amed

Pla

ce

Exp

ort

Doc

umen

ts,

Form

aliti

es,

and

Fees

Pre

-Car

riage

to

Nam

ed

Pla

ce, N

ot

Unl

oade

d

Del

iver

yat

Nam

ed

Pla

ce/P

ort,

Unl

oade

d

Load

ing

at N

amed

Pla

ce/P

ort

of S

hipm

ent

Load

edO

n B

oard

Shi

p or

Vess

el

Tran

spor

t by

Air,

Rai

l, R

oad,

W

ater

, or

Mul

timod

al

On

Boa

rd

Shi

p or

Ve

ssel

, Not

U

nloa

ded

Dis

char

ging

(u

nloa

ding

) at

Nam

ed P

lace

/Por

t of

Des

tinat

ion

Del

iver

y at

N

amed

Pla

ce/

Term

inal

Onw

ard

Car

riage

to

Nam

ed P

lace

, N

ot U

nloa

ded

Impo

rt D

ocum

ents

, Fo

rmal

ities

, an

d D

utie

s

Buy

er/

Impo

rter

Nam

ed P

lace

, U

nloa

ded

CA

RR

IAG

E

RIS

KS

CO

STS

SELL

ERB

UYE

R

ASUS

Highlight

ASUS

Highlight

ASUS

Highlight



DA

PD

eliv

ered

At P

lace

(. .

. nam

ed p

lace

of d

estin

atio

n)

Inco

term

Cat

egor

yD

eliv

ered

At P

lace

is a

“D” t

erm

spec

ifyin

g th

at th

e sel

ler

is re

spon

sible

for a

ll co

sts a

ssoc

iate

d w

ith d

eliv

erin

g th

ego

ods t

o th

e “n

amed

pla

ce o

f des

tinat

ion,

” ex

clud

ing

im-

port

custo

ms f

orm

aliti

es, d

utie

s, fe

es, a

nd ta

xes.

“D”

term

s evi

denc

e “a

rriva

l” (a

s opp

osed

to “

ship

men

t”)

cont

ract

s.N

ote:

Doc

umen

ts m

ay b

e pa

per o

r ele

ctro

nic,

as c

usto

m-

ary

or as

agre

ed to

by

the p

artie

s to

the t

rans

actio

n.M

odes

of T

rans

port

Cov

ered

All

mod

es o

f tra

nspo

rt in

cludi

ng m

ultim

odal.

Selle

r’s R

espo

nsib

ilitie

s (s

umm

ary)

1.G

oods

—Pr

ovid

e the

goo

ds, c

omm

erci

al in

voic

e, an

dot

her d

ocum

enta

tion

as re

quire

d by

the s

ales

cont

ract

.2.

Lice

nses

, Se

curi

ty,

and

Cus

tom

s Fo

rmal

ities

—O

btai

n at

ow

n ris

k an

d co

st al

l req

uire

d ex

port

li-ce

nses

, doc

umen

ts, a

nd a

utho

rizat

ions

and

car

ry o

utex

port

form

aliti

es a

nd p

roce

dure

s as

wel

l as

thos

ere

quire

d fo

r tra

nssh

ipm

ent

thro

ugh

any

coun

trypr

ior t

o de

liver

y.3.

Car

riag

e an

d In

sura

nce—

Cont

ract

and

pay

for t

heca

rriag

e of

the

good

s to

the

nam

ed p

lace

of d

estin

a-tio

n. N

o ob

ligat

ion

to th

e buy

er to

secu

re a

cont

ract

of

insu

ranc

e. A

t buy

er’s

requ

est a

nd c

ost,

prov

ide

info

r-m

atio

n to

enab

le th

e buy

er to

obt

ain

insu

ranc

e.4.

Del

iver

y—M

ake

the

good

s av

ailab

le to

the

buye

r, no

tun

load

ed, f

rom

the

arriv

ing

mea

ns o

f tra

nspo

rt, a

t the

nam

ed pl

ace o

f des

tinati

on, w

ithin

the a

gree

d-up

on tim

e.5.

Risk

Tra

nsfe

r—A

ssum

e al

l risk

s of l

oss o

r dam

age

to th

e go

ods

until

they

hav

e be

en m

ade

avai

labl

e to

the

buye

r, no

t unl

oade

d, fr

om th

e ar

rivin

g m

eans

of

trans

port,

at t

he n

amed

pla

ce o

f de

stina

tion,

with

inth

e agr

eed-

upon

tim

e.6.

Cos

ts—

Pay

all c

osts

until

the

good

s ha

ve b

een

mad

eav

ailab

le to

the

buye

r, no

t unl

oade

d fro

m th

e ar

rivin

g

mea

ns o

f tra

nspo

rt, a

t the

nam

ed p

lace

of d

estin

ation

.Pa

y all c

osts

relat

ing t

o exp

ort, i

nclu

ding

expo

rt cu

stom

sfo

rmali

ties,

dutie

s, fe

es, a

nd ta

xes,

as w

ell a

s tho

se re

-qu

ired

for t

rans

ship

men

t thr

ough

any

cou

ntry

prio

r to

deliv

ery.

Pay

all c

osts

of lo

adin

g an

d ca

rriag

e to

the

plac

e of

des

tinati

on. P

ay fo

r cos

ts of

unl

oadi

ng if

un-

load

ing i

s inc

lude

d in t

he co

ntra

ct fo

r main

carri

age.

7.N

otic

e to

the

Buy

er—

Prov

ide

timely

not

ice th

at en

-ab

les th

e bu

yer

to ta

ke p

osse

ssion

of

the

good

s at

thena

med

plac

e of d

estin

ation

, with

in th

e agr

eed-

upon

time.

8.D

eliv

ery

and

Tran

spor

t Doc

umen

ts—

Prov

ide

the

buye

r with

a d

ocum

ent t

hat w

ill a

llow

the

buye

r to

clai

m th

e goo

ds at

the n

amed

pla

ce o

f des

tinat

ion.

9.C

heck

ing,

Pac

king

, Mar

king

—Pa

y all

costs

asso

ci-ate

d w

ith ch

ecki

ng th

e qua

lity

and

quan

tity

of th

e goo

dsto

be i

n co

nfor

mity

with

the s

ales c

ontra

ct. P

rovi

de p

re-

ship

men

t ins

pecti

ons a

s req

uire

d fo

r exp

ort f

orm

alitie

s.Pa

ckag

e the

goo

ds, u

nles

s the

goo

ds ar

e con

vent

iona

llyso

ld u

npac

kage

d. Pa

ckag

e the

goo

ds as

the s

eller

dee

ms

appr

opria

te fo

r tra

nspo

rt un

less t

he b

uyer

has

giv

en sp

e-cif

ic re

quire

men

ts pr

ior t

o th

e fin

aliza

tion

of th

e sa

lesco

ntra

ct. P

rovi

de m

arki

ng ap

prop

riate

to th

e pac

kagi

ng.

10.O

ther

—Ti

mely

pro

vide

the

buye

r, at

the

buye

r’s re

-qu

est a

nd c

ost,

assis

tance

in se

curin

g in

form

ation

and

docu

men

ts, in

cludi

ng se

curit

y in

form

ation

, req

uire

d by

the

buye

r for

impo

rt an

d tra

nspo

rt of

the

good

s fro

mth

e nam

ed p

lace o

f des

tinati

on to

the f

inal

desti

natio

n.

Reim

burs

e th

e bu

yer f

or b

uyer

’s co

sts re

late

d to

se-

curin

g in

form

atio

n an

d do

cum

enta

tion,

incl

udin

g se

-cu

rity

info

rmat

ion,

the

sel

ler

requ

ires

for

expo

rtfo

rmal

ities

, tra

nspo

rt, s

ecur

ity c

lear

ance

, and

tran

s-sh

ipm

ent t

o th

e nam

ed p

lace

of d

estin

atio

n.

Buy

er’s

Res

pons

ibili

ties

(sum

mar

y)1.

Paym

ent—

Pay

for t

he g

oods

as p

rovi

ded

in th

e sal

esco

ntra

ct.

2.Li

cens

es,

Secu

rity

, an

d C

usto

ms

Form

aliti

es—

Obt

ain

any

impo

rt lic

ense

s or a

utho

rizat

ions

and

han-

dle a

ll im

port

form

aliti

es.

3.C

arri

age

and

Insu

ranc

e—Bu

yer h

as n

o ob

ligat

ion

to th

e sel

ler f

or co

ntra

cts o

f car

riage

or i

nsur

ance

.4.

Taki

ng D

eliv

ery—

Take

deli

very

of t

he g

oods

at t

hena

med

plac

e of d

estin

ation

as p

rovi

ded

in th

e con

tract.

5.R

isk T

rans

fer—

Ass

ume

risk

of l

oss

or d

amag

efro

m th

e tim

e th

e go

ods h

ave

been

mad

e av

aila

ble

atth

e na

med

pla

ce o

f de

stina

tion,

with

in t

he a

gree

d-up

on ti

me.

6.C

osts

—Pa

y an

y ad

ditio

nal c

osts

after

the

good

s ha

vebe

en m

ade

avail

able

at th

e na

med

plac

e of

des

tinati

onw

ithin

the a

gree

d-up

on ti

me.

Pay

for c

osts

of u

nloa

ding

if un

load

ing w

as no

t inclu

ded i

n the

selle

r’s or

igin

al co

n-tra

ct fo

r car

riage

. Pay

cos

ts of

impo

rt cu

stom

s for

mali

-tie

s, du

ties,

fees

, and

taxe

s. Pa

y cos

ts of

onw

ard c

arria

ge.

7.N

otic

e to

Sel

ler—

If, a

ccor

ding

to th

e sa

les c

ontra

ct,

the

buye

r is e

ntitl

ed to

spec

ify a

tim

e or

poi

nt o

f tak

-in

g de

liver

y at

the n

amed

pla

ce o

f des

tinat

ion,

to g

ive

selle

r suf

ficie

nt n

otic

e.8.

Proo

f of D

eliv

ery—

Acc

ept t

he se

ller’s

del

iver

y do

c-um

ent i

f it i

s in

conf

orm

ity w

ith th

e sal

es co

ntra

ct.

9.In

spec

tion(

s)—

Pay

for p

re-s

hipm

ent i

nspe

ctio

ns u

n-le

ss su

ch is

requ

ired

by th

e cou

ntry

of e

xpor

t.10

.Oth

er—

Tim

ely

advi

se th

e se

ller o

f any

sec

urity

-re-

late

d da

ta r

equi

rem

ents.

Rei

mbu

rse

the

selle

r fo

rse

ller’s

cos

ts re

late

d to

secu

ring

info

rmat

ion

or d

ocu-

men

tatio

n, i

nclu

ding

sec

urity

inf

orm

atio

n, t

hat

the

buye

r req

uire

s fo

r im

port

form

aliti

es, s

ecur

ity c

lear

-an

ce, a

nd tr

ansp

ort o

f the

goo

ds to

the

final

des

tina-

tion.

A

t the

sel

ler’s

req

uest

and

cost,

tim

ely

prov

ide

the

selle

r with

any

doc

umen

ts an

d in

form

atio

n re

quire

dfo

r ex

port,

tra

nspo

rt, a

nd s

ecur

ity c

lear

ance

of

the

good

s to

the n

amed

pla

ce o

f des

tinat

ion.



DD

PD

eliv

ered

Dut

y Pa

id (.

. . n

amed

pla

ce o

f des

tinat

ion)

DD

P, D

eliv

ered

Dut

y Pa

id (.

. . n

amed

pla

ce o

f des

tinat

ion)

In D

eliv

ered

Dut

y Pa

id, t

he se

ller/e

xpor

ter/m

anuf

actu

rer

clea

rs th

e goo

ds fo

r exp

ort a

nd is

resp

onsib

le fo

r the

ir de

-liv

ery

to th

e “na

med

pla

ce o

f des

tinat

ion.

”In

DD

P, th

e se

ller a

lso c

lear

s the

goo

ds fo

r im

port

in th

eco

untry

of

desti

natio

n an

d pa

ys f

or a

ll im

port

custo

ms

form

aliti

es, d

utie

s, fe

es, V

AT (v

alue

adde

d ta

x), a

nd o

ther

taxe

s.In

DPP

, the

selle

r mak

es th

e goo

ds av

aila

ble t

o th

e buy

eron

the

arriv

ing

mea

ns o

f tra

nspo

rt at

the

nam

ed p

lace

of

desti

natio

n, n

ot u

nloa

ded.

Whe

n us

ing

the D

DP

term

, it i

s adv

isabl

e to

clea

rly sp

ec-

ify in

the c

ontra

ct o

f sal

e and

in co

ntra

cts o

f car

riage

, not

only

the

nam

ed p

lace

of d

estin

atio

n, b

ut a

lso th

e pr

ecise

poin

t at o

r with

in th

e nam

ed p

lace

of d

estin

atio

n.

In D

DP,

the n

amed

pla

ce o

f des

tinat

ion

is do

mes

tic to

the

buye

r and

is o

ften

the b

uyer

’s pl

ace o

f bus

ines

s.Th

e DD

P te

rm m

ay b

e use

d fo

r any

mod

e of t

rans

port

in-

clud

ing

mul

timod

al.

The D

DP

term

is id

eal f

or m

ultim

odal

tran

spor

t.A

ll fo

rms o

f pay

men

t are

use

d in

DD

P tra

nsac

tions

.Th

e D

DP

term

pla

ces

the

grea

test

resp

onsib

ility

on

the

selle

r and

the l

east

resp

onsib

ility

on

the b

uyer

.

Exa

mp

les

DD

P, Im

porte

r ABC

War

ehou

se, F

ull A

ddre

ss, C

hica

go,

Illin

ois,

USA

DD

P, Im

porte

r XY

Z, F

ull A

ddre

ss, P

aris,

Fra

nce

Mo

des

of

Tra

nsp

ort

Air

—Ye

sR

ail—

Yes

Roa

d—Ye

sSe

a—Ye

sIn

land

Wat

erw

ay—

Yes

Mul

timod

al—

Yes

Selle

r/Ex

porte

rN

amed

Pla

ce

Exp

ort

Doc

umen

ts,

Form

aliti

es,

and

Fees

Pre

-Car

riage

to

Nam

ed

Pla

ce, N

ot

Unl

oade

d

Del

iver

yat

Nam

ed

Pla

ce/P

ort,

Unl

oade

d

Load

ing

at N

amed

Pla

ce/P

ort

of S

hipm

ent

Load

edO

n B

oard

Shi

p or

Vess

el

Tran

spor

t by

Air,

Rai

l, R

oad,

W

ater

, or

Mul

timod

al

On

Boa

rd

Shi

p or

Ve

ssel

, Not

U

nloa

ded

Dis

char

ging

(u

nloa

ding

) at

Nam

ed P

lace

/Por

t of

Des

tinat

ion

Del

iver

y at

N

amed

Pla

ce/

Term

inal

Onw

ard

Car

riage

to

Nam

ed P

lace

, N

ot U

nloa

ded

Impo

rt D

ocum

ents

, Fo

rmal

ities

, an

d D

utie

s

Buy

er/

Impo

rter

Nam

ed P

lace

, U

nloa

ded

CA

RR

IAG

E

RIS

KS

CO

STS

SELL

ERB

UYE

R

ASUS

Highlight

ASUS

Highlight

ASUS

Highlight

ASUS

Highlight

ASUS

Highlight

ASUS

Highlight



DD

PD

eliv

ered

Dut

y Pa

id (.

. . n

amed

pla

ce o

f des

tinat

ion)

In

cote

rm C

ateg

ory

Del

iver

ed D

uty

Paid

is a

“D

” te

rm s

peci

fyin

g th

at th

ese

ller i

s re

spon

sible

for a

ll co

sts a

ssoc

iate

d w

ith d

eliv

er-

ing

the g

oods

to th

e “na

med

pla

ce o

f des

tinat

ion,

” inc

lud-

ing

impo

rt cu

stom

s for

mal

ities

, dut

ies,

fees

, and

taxe

s.“D

” te

rms e

vide

nce

“arri

val”

(as o

ppos

ed to

“sh

ipm

ent”

)co

ntra

cts.

Not

e: D

ocum

ents

may

be

pape

r or e

lect

roni

c, as

cus

tom

-ar

y or

as ag

reed

to b

y th

e par

ties t

o th

e tra

nsac

tion.

Mod

es o

f Tra

nspo

rt C

over

edA

ll m

odes

of t

rans

port

inclu

ding

mul

timod

al.Se

ller’s

Res

pons

ibili

ties

(sum

mar

y)1.

Goo

ds—

Prov

ide t

he g

oods

, com

mer

cial

invo

ice,

and

othe

r doc

umen

tatio

n as

requ

ired

by th

e sal

es co

ntra

ct.

2.Li

cens

es,

Secu

rity

, an

d C

usto

ms

Form

aliti

es—

Obt

ain

at o

wn

risk

and

cost

all r

equi

red

expo

rt an

dim

port

licen

ses,

docu

men

ts, a

nd a

utho

rizat

ions

and

carry

out

exp

ort a

nd im

port

form

aliti

es a

nd p

roce

-du

res

as w

ell

as t

hose

req

uire

d fo

r tra

nssh

ipm

ent

thro

ugh

any

coun

try p

rior t

o de

liver

y.3.

Car

riag

e an

d In

sura

nce—

Cont

ract

and

pay

for t

heca

rriag

e of

the

good

s to

the

nam

ed p

lace

of d

estin

a-tio

n. N

o ob

ligat

ion

to th

e buy

er to

secu

re a

cont

ract

of

insu

ranc

e. A

t the

buy

er’s

requ

est a

nd co

st, p

rovi

de in

-fo

rmat

ion

to en

able

the b

uyer

to o

btai

n in

sura

nce.

4.D

eliv

ery—

Mak

e th

e go

ods

avail

able

to th

e bu

yer,

not

unlo

aded

fro

m th

e arr

ivin

g m

eans

of

trans

port,

at t

hena

med

plac

e of d

estin

ation

, with

in th

e agr

eed-

upon

time.

5.R

isk T

rans

fer—

Ass

ume

all r

isks o

f los

s or d

amag

eto

the

good

s un

til th

ey h

ave

been

mad

e av

aila

ble

toth

e bu

yer,

not u

nloa

ded

from

the

arriv

ing

mea

ns o

ftra

nspo

rt, a

t the

nam

ed p

lace

of

desti

natio

n, w

ithin

the a

gree

d-up

on ti

me.

6.C

osts

—Pa

y all

cos

ts un

til th

e go

ods

have

bee

n m

ade

avail

able

to th

e bu

yer,

not u

nloa

ded

from

the

arriv

ing

mea

ns o

f tra

nspo

rt, a

t the

nam

ed p

lace

of d

estin

ation

.Pa

y all c

osts

relat

ing t

o exp

ort a

nd im

port,

inclu

ding

cus-

tom

s for

mali

ties,

dutie

s, fe

es, a

nd ta

xes,

as w

ell as

thos

ere

quire

d fo

r tra

nssh

ipm

ent t

hrou

gh an

y co

untry

prio

r to

deliv

ery.

Pay

all c

osts

of lo

adin

g an

d ca

rriag

e to

the

plac

e of

des

tinati

on. P

ay fo

r cos

ts of

unl

oadi

ng if

un-

load

ing i

s inc

lude

d in t

he co

ntra

ct fo

r main

carri

age.

7.N

otic

e to

the

Buy

er—

Prov

ide

timely

not

ice th

at en

-ab

les th

e bu

yer

to ta

ke p

osse

ssion

of

the

good

s at

thena

med

plac

e of d

estin

ation

, with

in th

e agr

eed-

upon

time.

8.D

eliv

ery

and

Tran

spor

t Doc

umen

ts—

Prov

ide

the

buye

r with

a d

ocum

ent t

hat w

ill a

llow

the

buye

r to

clai

m th

e goo

ds at

the n

amed

pla

ce o

f des

tinat

ion.

9.C

heck

ing,

Pac

king

, Mar

king

—Pa

y all

costs

asso

ci-ate

d w

ith ch

ecki

ng th

e qua

lity

and

quan

tity

of th

e goo

dsto

be

in c

onfo

rmity

with

the

sales

con

tract.

Pro

vide

in-

spec

tions

as r

equi

red

for e

xpor

t and

impo

rt fo

rmali

ties.

Pack

age t

he g

oods

, unl

ess t

he g

oods

are c

onve

ntio

nally

sold

unp

acka

ged.

Pack

age t

he g

oods

as th

e sell

er d

eem

sap

prop

riate

for t

rans

port

unles

s the

buy

er h

as g

iven

spe-

cific

requ

irem

ents

prio

r to

the

finali

zatio

n of

the

sales

cont

ract.

Pro

vide

mar

king

appr

opria

te to

the p

acka

ging

.10

.Oth

er—

Tim

ely p

rovi

de th

e bu

yer,

at th

e bu

yer’s

re-

ques

t and

cos

t, as

sistan

ce in

sec

urin

g in

form

ation

and

docu

men

ts, in

cludi

ng se

curit

y in

form

ation

, req

uire

d by

the

buye

r fo

r tra

nspo

rt of

the

good

s fro

m th

e na

med

plac

e of d

estin

ation

to th

e fin

al de

stina

tion.

Reim

burse

the b

uyer

for b

uyer

’s co

sts re

lated

to se

curin

gin

form

ation

and

doc

umen

tatio

n, in

cludi

ng s

ecur

ity in

-fo

rmati

on, r

equi

red

by th

e se

ller f

or e

xpor

t for

mali

ties,

trans

port,

sec

urity

clea

ranc

e, im

port

form

alitie

s, an

dtra

nssh

ipm

ent t

o the

nam

ed pl

ace o

f des

tinati

on.

Buy

er’s

Res

pons

ibili

ties

(sum

mar

y)1.

Paym

ent—

Pay

for t

he g

oods

as p

rovi

ded

in th

e sal

esco

ntra

ct.

2.Li

cens

es,

Secu

rity

, an

d C

usto

ms

Form

aliti

es—

Prov

ide

the

selle

r, at

the

selle

r’s re

ques

t and

cos

t, as

-sis

tanc

e in

sec

urin

g lic

ense

s, do

cum

entat

ion,

and

au-

thor

izatio

ns re

quire

d to i

mpo

rt th

e goo

ds.

3.C

arri

age

and

Insu

ranc

e—N

o ob

ligat

ion

to t

hese

ller f

or co

ntra

cts o

f car

riage

or i

nsur

ance

.4.

Taki

ng D

eliv

ery—

Take

deli

very

of t

he g

oods

at t

hena

med

plac

e of d

estin

ation

as p

rovi

ded

in th

e con

tract.

5.R

isk T

rans

fer—

Ass

ume

risk

of l

oss

or d

amag

efro

m th

e tim

e th

e go

ods h

ave

been

mad

e av

aila

ble

atth

e na

med

pla

ce o

f de

stina

tion,

with

in t

he a

gree

d-up

on ti

me.

6.C

osts

—Pa

y an

y ad

ditio

nal c

osts

afte

r the

goo

ds h

ave

been

mad

e ava

ilabl

e at t

he n

amed

pla

ce o

f des

tinat

ion

with

in th

e ag

reed

-upo

n tim

e. Pa

y fo

r cos

ts of

unl

oad-

ing

if un

load

ing

was

not

inclu

ded

in th

e se

ller’s

orig

i-na

l con

tract

for c

arria

ge. P

ay co

sts o

f onw

ard

carri

age.

7.N

otic

e to

Sel

ler—

If, a

ccor

ding

to th

e sa

les c

ontra

ct,

the

buye

r is e

ntitl

ed to

spec

ify a

tim

e or

poi

nt o

f tak

-in

g de

liver

y at

the n

amed

pla

ce o

f des

tinat

ion,

to g

ive

selle

r suf

ficie

nt n

otic

e.8.

Proo

f of D

eliv

ery—

Acc

ept t

he se

ller’s

del

iver

y do

c-um

ent i

f it i

s in

conf

orm

ity w

ith th

e sal

es co

ntra

ct.

9.In

spec

tion(

s)—

No

oblig

atio

n to

the

selle

r fo

r pr

e-sh

ipm

ent i

nspe

ctio

ns re

quire

d fo

r exp

ort o

r im

port.

10.O

ther

—Ti

mel

y ad

vise

the

selle

r of a

ny s

ecur

ity-re

-la

ted

data

requ

irem

ents.

Re

imbu

rse t

he se

ller f

or se

ller’s

costs

rela

ted

to se

cur-

ing

info

rmat

ion

or d

ocum

enta

tion,

incl

udin

g se

curit

yin

form

atio

n, th

at th

e bu

yer

requ

ires

for

trans

port

ofth

e goo

ds to

the f

inal

des

tinat

ion.

A

t the

sel

ler’s

req

uest

and

cost,

tim

ely

prov

ide

the

selle

r with

any

doc

umen

ts an

d in

form

atio

n re

quire

dfo

r exp

ort,

trans

port,

impo

rt, an

d se

curit

y cl

eara

nce o

fth

e goo

ds to

the n

amed

pla

ce o

f des

tinat

ion.

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