EX WORKS (EXW) = means that the seller fulfills his obligation to deliver when he has made the goods available at his premises (factory,warehouse,etc) to the buyer. The seller is not responsible for loading the goods on the vehicle provided by the buyer or for clearing the goods for export, unless otherwise agreed. The buyer bears all costs and risks involved in taking the goods from the seller's premises to the desired destination.

FREE CARRIER (FCA) = means that the seller fulfills his obligation to deliver the goods alongside the vessel.

FREE ALONGSIDE SHIP (FAS) = means that the seller fulfills his obligation to deliver when the goods have been placed alongside the vessel or the quay or in lighters at the named port of shipment.

FREE ON BOARD (FOB) = means that the seller fulfills his obligation to deliver when the good have passed over the ship's rail at the named port of shipment. This means that the buyer has to bear all costs and risks of loss or damage to the goods from that point.

COST & FREIGHT (CFR) = means that the seller must pay the costs and freight necessary to bring the goods to the named port of destination but the risk of loss or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel, is transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment. The CFR term requires the seller to clear the goods for export.

COST,INSURANCE & FREIGHT (CIF) = means that the seller has the same obligations as under "CFR" but with the addition that he has to procure marine insurance against the buyer's risk of loss or damage to the goods during carriage. The seller contracts for insurance and pays the insurance premium. The CIF term requires the seller to clear the goods for export.

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