Commonly Used Shipping and Payment Terms

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  • EXW (Ex Works) 
    Seller made goods available at his premises.
  • FCA (Free Carrier) 
    Seller handed over goods, cleared for export, into the charge of the carrier named by the buyer at the named place.
  • FAS (Free Alongside Ship) 
    Seller sent goods alongside the vessel or in lighters at the named port of shipment.
  • FOB (Free On Board) 
    Seller cleared goods for export at the named port of shipment.
  • CFR (Cost and Freight) 
    Seller paid costs necessary to bring the goods to the named port of destination.
  • CIF (Cost, Insurance and Freight) 
    Same as CFR but seller also has to include marine insurance loss or damage to goods during the shipment.
  • CPT (Carriage Paid To) 
    Seller paid freight to the named destination.
  • CIP (Carriage and Insurance Paid To) 
    Same as CPT, but also the seller has to include insurance loss of or damage to the goods during the carriage.
  • DAF (Delivered At Frontier) 
    Seller cleared goods for export, at the named destination but before the customs.
  • DDU (Delivered Duty Unpaid) 
    Seller delivered goods at the named destination.
  • DDP (Delivered Duty paid) 
    Seller delivered goods at the named destination and pay charges of delivering the goods to be cleared at custom.
  • DES (Delivered Ex Ship) 
    Seller delivered goods on board the ship, uncleared for import at the named destination. The seller pay to in bring goods to the named destination.
  • DEQ (Delivered Ex Quay, [Duty Paid]) 
    Seller delivered goods at the named destination, cleared for importation.
  • Cash in Advance 
    Upfront cash to seller before shipment.
  • Letter of Credit (L/C) 
    A letter issued by a bank authorizing the bearer to draw a stated amount of money from the issuing bank, its branches, or other associated banks or agencies.
  • Open Account 
    An unpaid credit order.
  • Consignment 
    Payments deferred until goods sold.
  • Telegraphic Transfer (T/T) 
    Electronic transfers of funds through banks.
Article ID: 29, , Modified: May 25, 2014 at 7:35 AM

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