International Commercial Terms Used in Logistics

A) Rules Covering All Modes of Transport

EXW – Ex Works
The seller makes the goods available at their premises on the agreed date, notifying the buyer. The buyer takes delivery of the goods at the seller’s premises, handles export documentation, completes customs formalities, and imports the goods into their own country. From the moment the goods are delivered at the seller’s premises, all costs and risks associated with the goods are borne by the buyer.

FCA – Free Carrier
The seller completes customs formalities and delivers the goods to the first carrier at the agreed place and date. From that moment, all costs and risks related to the goods transfer to the buyer. Freight charges and all other expenses are also paid by the buyer.

CPT – Carriage Paid To
The seller is responsible for paying the freight to the agreed destination. From the moment the goods are handed over to the first carrier, all risks and costs not included in the freight transfer to the buyer.

CIP – Carriage and Insurance Paid To
The seller has the same obligations as under CPT. In addition, the seller must obtain cargo insurance to cover the risk of loss or damage during transport.

DAT – Delivered at Terminal
The seller delivers the goods unloaded at the agreed terminal (which may be a port, customs warehouse, or the buyer’s facility). The seller covers unloading costs. All customs procedures, fees, duties, taxes, and charges are the responsibility of the buyer.

DAP – Delivered at Place
The seller delivers the goods ready for unloading on the transport vehicle at the agreed destination (e.g., port, customs point, airport). The buyer bears all customs procedures, fees, duties, and taxes. The seller covers transport costs and risks associated with delivery to the agreed place.

DDP – Delivered Duty Paid
The seller prepares the goods according to contract terms and arranges all necessary documents for use in the seller’s and buyer’s countries. The seller completes export and import customs formalities, provides the transport vehicle, and pays freight. All costs and risks associated with the goods remain with the seller until delivery at the agreed place and date in the buyer’s country, including customs duties. The buyer pays the agreed price and takes delivery of the goods.

B) Rules Specific to Sea and Inland Waterway Transport

FAS – Free Alongside Ship
The seller’s delivery obligation ends when the goods are placed alongside the vessel (on the quay or barge) at the agreed port. Costs for loading, unloading, transport, and insurance are borne by the buyer.

FOB – Free on Board
The seller loads the goods onto the ship provided by the buyer at the agreed place and date. From the moment the goods pass the ship’s rail (deck), all risks, damages, or costs are the responsibility of the buyer. The seller prepares all necessary documents for export and completes customs formalities.

CFR – Cost and Freight
The seller bears all costs and risks to deliver the goods to the agreed port of destination. The seller handles customs formalities and pays the freight for loading. From the moment the goods are loaded, all costs and risks excluding freight transfer to the buyer.

CIF – Cost, Insurance, and Freight
The seller bears the costs and risks of freight, insurance premium, and loading, delivering the goods to the agreed port. The seller coordinates with the shipping agent and informs the buyer that the goods were loaded at the agreed date and place. The seller arranges marine cargo insurance suitable for the type of goods, covering minimal coverage according to the sales contract. After loading, all costs and risks except freight and insurance premium transfer to the buyer.

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