DELIVERY IN COMMERCIAL ENTERPRISE / EX WORKS (EXW)
“Ex works” means that the seller fulfills the delivery obligation by keeping the goods ready for the buyer’s order at his business (factory, warehouse, etc.). The Seller is not responsible for loading the goods into a vehicle provided by the buyer or for clearing the goods through export customs unless otherwise agreed. From this point until the destination, the buyer bears the liability for all expenses and risks related to the transportation of the goods. This term is a form of sale that includes the least liability for the seller among all forms of sales.
In this form of delivery, the sales price specified in the contract includes only the price of the packaged goods. In other words, all kinds of transportation, loading, unloading and insurance costs are paid by the buyer from the date of delivery.
DELIVERY TO CARRIER / FREE CARRIER (FCA)
With this term, the delivery obligation of the seller ends with the delivery of the goods through the export customs and delivery to the carrier determined by the buyer at the specified place or point.
If an exact place of delivery has not been specified by the buyer, the seller may designate a place in the vicinity of the place where the carrier will receive the goods. If commercial practices require the assistance of the seller in order to conclude a contract with the carrier (e.g. in rail and air transport), the seller may act at the buyer’s own risk and expense.
DELIVERY AT SHIP (MOROCCO)
With this term, the seller’s obligation to deliver ends with the placing of the goods on the dock or barge in the direction of the ship at the designated port. This means that from this moment on, all expense, loss or damage risks related to the goods are assumed by the buyer. The costs of loading, unloading, shipping and insurance of the goods are paid by the buyer. In FAS, the sales price specified in the contract includes both the cost of the goods and the transportation fee up to the quay.
This term indicates that the buyer must withdraw the goods from customs for export. It should not be used if the buyer will not directly or indirectly carry out the export transactions.
This term is used only in maritime or inland water transport.
DELIVERY ON BOARD / FREE ON BOARD (FOB)
With this term, the delivery obligation of the seller is fulfilled at the designated loading port from the moment the goods open the ship handrail. All expense, loss or damage risks related to the goods shall be borne by the buyer from this point onwards. If the ship handrail does not mean anything in practice (such as in roll-on/roll-off or container transportation), it is more correct to use the term FCA.
COST OF GOODS OR FREIGHT(CFR)
With this term, the seller must pay all necessary expenses and freight in order to be able to send the goods to the designated port of destination. However, the risk of a lost damage to the goods and the increase in expenses shall be transferred from the seller to the buyer from the moment the goods pass the ship handrail at the loading port.
The term CFR indicates that the seller must pass the goods through customs for export.
COST, INSURANCE AND FREIGHT (CIF)
With this term, the seller has its obligations in the CFR exactly. However, in addition, it has to provide marine insurance against the risk of loss or damage during the transportation of goods. The seller concludes the insurance contract and pays the insurance premium. The buyer should know that with this term, the seller has an obligation to provide only the minimum amount of insurance in the insurance.
This term indicates that the seller must pass the goods through customs for export. This term is used only in maritime and inland water transport. If the ship handrail means nothing in practice, it is more appropriate to use the term CIP.
CARRIAGE PAID TO (CPT)
This term means that the seller has paid the freight necessary for the carriage of the goods to the agreed destination. The risks of loss and damage to the goods and the additional costs that may arise from the delivery to the carrier pass from the seller to the buyer from the moment the goods are placed in the custody of the carrier.
A carrier is a person who undertakes the transportation process resulting from the transportation of iron, land, sea, air, inland water transportation or the combination thereof in a contract of carriage.
CARRIAGE AND INSURANCE PAID TO (CIP)
With this term, the seller has its obligations in the CPT exactly. However, in addition, it is obliged to provide cargo insurance in case of risk of loss or damage during the transportation of goods.
The seller concludes the insurance contract and pays the insurance premium.
DELIVERED AT FRONTIER (DAF)
This term refers to the termination of the seller’s delivery obligation when the goods are cleared through customs for export and made available for order at the place or point determined at the border only before the customs border of the adjacent country.
The term border can be used for any border, including the border of the country of export. Therefore, it is vitally important that the boundary in question is always precisely defined by specifying the point or place in the term.
DELIVERED EX SHIP (DES)
With this term, the seller’s obligation to deliver ends with keeping the goods ready for the buyer’s disposal at the designated port of destination, on the ship board, without passing it through the import customs. The Seller bears all expenses and risks necessary for the goods to be brought to the designated port of destination. This term can only be used for sea or inland water transport.
DELIVERY AT THE DOCK ( CUSTOMS DUTIES AND DUTIES PAID) / DELIVERED EX QUAY(Duty Paid) (DEQ)
Delivery at the Dock (with Customs Duties and Duties Paid)
With this term, the seller’s obligation to deliver ends with keeping the goods ready for the buyer’s order on the dock, having passed through the import customs at the designated port of destination.
The seller bears all risks and expenses, including taxes, duties and other duties associated with the carriage of the goods up to that point.
This term should not be used if the seller cannot provide an import license, directly or indirectly. If the parties want the goods to be cleared by the buyer and to pay the customs duties, they should use the term “duty unpaid” instead of “dutiy paid”. If the parties want to deduct from the obligations of the seller a number of expenses payable for the import of goods (such as VAT), they should finalize this by adding words that will have this effect.
DELIVERED DUTY UNPAID (DDU)
With this term, the seller’s obligation to deliver ends with the goods being made available for order at the designated place in the country of importation. The Seller is obliged to bear the risks and expenses related to the carriage of the goods up to that point and the fulfillment of customs formalities (except for taxes and duties due for importation).
The buyer must bear the additional expenses and risks arising from the failure to withdraw the goods from customs for timely importation.
If the parties want the seller to fulfill the customs formalities and assume the expenses and risks that may arise from this, they should finalize this by adding words that will have this effect.
If the parties want to add to the obligations of the seller some expenses necessary for the import of goods (such as VAT), they should finalize this by adding words that will have this effect. This term can be used regardless of the mode of transport.
DELIVERED DUTY PAID (DDP)
With this term, the seller’s obligation to deliver ends with the goods being kept ready for order at the designated place in the country of importation. The Seller is obliged to bear the risks and expenses, including taxes, duties and other duties necessary for the carriage of the goods up to that point and for their passage through the import customs. The less obligation the term EXW means for the seller, the more obligations the term DDP refers to.
