Glossary

sales terms

  • Carriage Insurance Paid To (CIP)

    Carriage and Insurance Paid to (agreed place of destination), non-maritime condition. The transfer of costs occurs when the goods have been delivered to the agreed destination. The transfer of risk occurs at the time that the goods are offered for carriage to put in the care of the (first) carrier as in FCA and CPT. The seller has fulfilled his obligation to deliver when the goods are under the custody of the (first) carrier that was nominated and named by the seller. This means for FCL usually when the goods are loaded in the outgoing means of transport in the factory or in the field of the seller. For an LCL is this usually the moment that the seller has delivered the goods at the designated consolidation warehouse. The insured value of goods is normally 110% of invoice value.

    (source: Incoterms 2010)

  • Carriage Paid To (CPT)

    Carriage Paid To, CPT, (agreed place of destination), non-maritime condition. The transfer of costs occurs when the goods have been delivered to the agreed destination. The transfer of risk already occurs at the time that the goods are offered for carriage to put in the care of the (first) carrier as in FCA. With FCL, this usually means the plant or on the property of the seller after loading and with LCL usually after delivery of the goods to the carrier nominated by the seller itself. The seller has fulfilled his obligation to deliver when the goods are under the custody of the carrier that was nominated and named by the seller. This means for FCL usually when the goods are loaded in the outgoing means of transport in the factory or in the field of the seller. For an LCL is this usually the moment that the seller has delivered the goods at the designated consolidation warehouse.

    (source: Incoterms 2010)

  • Cost & Freight (CFR)

    Sales term denoting that the seller is responsible for arranging and paying for the carriage of goods to the agreed port of discharge. Risk of loss or damage generally passes to the buyer when the goods pass the ship's rail at the port of loading. The seller delivers the cleared goods and transfers them to the carrier appointed by the buyer, in the location or place agreed on. If no exact place has been agreed on, the seller may select where within the stipulated location or area liability is transferred.

  • Cost Insurance & Freight (CIF)

    Sales term denoting that the seller is responsible for arranging and paying for the carriage of goods to the agreed port of discharge and for the insurance of goods covering the period of carriage involved in the contract of sale. The risk of loss or damage generally passes to the buyer when the goods pass vessel's rail at the port of loading.

  • Delivered At Place (DAP)

    Delivered at Place, DAP, (agreed place of destination), non-maritime condition. The transfer of costs and risk occurs when the goods are not cleared and unloaded from the arriving means of transport, and available to the buyer at the agreed place of destination. The seller has fulfilled his obligation to deliver as soon as the goods are not cleared and unloaded from the arriving means of transport, are available at the agreed place of destination. DAP replaces the conditions DAF, DES and DDU. (source: Incoterms 2010)

  • Delivered At Terminal (DAT)

    The transfer of costs and risk occurs when the goods are not cleared and unloaded from the arriving means of transport, and available to the buyer at the agreed destination terminal. The seller has fulfilled his obligation to deliver as soon as the goods are not cleared and unloaded from the arriving means of transport, are available at the agreed destination terminal. Terminal: every place such as the wharf, warehouse, container-, road-, rail- or air terminal.

    (source: Incoterms 2010)

  • Delivered Duty Paid (DDP)

    Delivered Duty Paid, DDP, (agreed place of destination), non-maritime condition. The transfer of costs and risk takes place after the goods custom cleared and duties paid, but not discharged, made available to the buyer at the named place of destination. The seller has fulfilled his obligation to deliver when the goods are custom cleared and  import taxes are paid, not unloaded at the disposal of the buyer at the named place of destination.

    (source: Incoterms 2010)

  • Ex Works (EXW)

    When the goods are loaded on the transport unit of the buyer, the transfer of costs and risks is prior to the loading. The seller has fulfilled his obligation to deliver as soon as the goods are export worthy packed with marks and numbers and ready for sending, at the agreed place and the seller has informed the buyer according.

    (source: Incoterms 2010)

  • Free Alongside Ship (FAS)

    The transfer of costs and risk occur at the time the goods are delivered alongside the vessel that is nominated by the buyer, so before loading. The seller has fulfilled his obligation at the moment that he delivers the goods alongside the (by the purchaser) nominated and named vessel in the port of departure. Alongside i.e. alongside the waterfront, such as a barge or alongside on the tray of the shipping port by truck.

    (source: Incoterms 2010)

  • Free Carrier (Named Place) (FCA)

    The seller arranges goods with invoice, packaging, export licence, customs formalities when exporting and costs up to delivery of the goods to the carrier (the transport company), as stipulated by the buyer and in accordance with the mode of transport.

  • Free Onboard Vessel (FOB)

    Sales term meaning that the seller is responsible for the delivery of goods to the port of loading agreed in the contract and for loading them on board of the vessel nominated by the buyer. The risk of loss or damage to the goods generally passes from seller to buyer when the goods pass ship's rail at the port of loading.

  • Post-carriage

    Freight charges for delivery of the goods arising after the principal international carriage.

  • Pre-carriage

    Freight charges for port delivery of the goods arising before the principal international carriage.

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