Types of containers

Incoterms 2010

DDP (Delivered, Duty Paid)

The exporter must complete all the paper work and pay all costs to get the goods delivered to the buyer's destination. This term places the most responsibility on the exporter and the minimum responsibility on the buyer. Care should be taken to make sure the place of destination is clearly agreed.

DAP (Delivered at Place)

Incoterms 2010 terms of delivery.
The term means that the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. According to the DAP the seller bears all risks and costs involved in bringing the goods to the named place, including export charges.

DAT (Delivered at Terminal)

The term is used during cargo transportation by any type of transport, including multimodal (mixed) transportations. Transporter - any individual who according to the contract of transportation undertakes to provide or arrange transportation via one of the types of transport, or a combination thereof (by railway, road, air, sea, road). Seller is obliged to perform all the customs formalities necessary for the export of goods but is not obliged to take on the financial and customs obligations on import of goods, pay customs charges on its import orperform other import customs formalities for import. If the parties intend to lay an obligation on customs procedures for import to the seller, it is properly to use the term DDP.

DAF (Delivered at Frontier)

Obsolete Incoterms 2000 term. Replaced by DAP in the Incoterms 2010.

CFR (Cost And Freight)

Terms of delivery according to which the seller pays for the delivery of cargo to the port, loading and freight, customs procedures.

CIF (Cost, Insurance and Freight)

Terms of delivery, meaning the seller fulfills the delivery when the cargo is loaded on the vehicle at the place of shipment. At the same time the sale price includes:
• cost of goods;
• freight;
• possibly, costs of transportation;
• insurance cost of transportation.
Similar to CFR, however the exporter must also obtain and pay for the marine insurance against the buyer's risk of loss or damage to the goods during carriage. Note that the exporter is only required to obtain insurance for minimum coverage.

CPT (Carriage Paid To)

Under CPT, the exporter must clear the goods for export and pay the freight cost to the buyer's destination. However, the risk of loss or damage is the buyer's, as well as any costs arising after the exporter has delivered the goods to the carrier.

CIP (Carriage And Insurance Paid To)

Terms of delivery indicating that the seller delivers the goods to the carrier or another person nominated by the seller at an agreed place. The seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination, rliability ends upon the delivery of cargo to the transporter nominated by the buyer. When working with multiple carriers the liability ends after the delivery of the goods to the first of them. The term is very similar with the CPT. The difference is that under the terms of the CIP the seller must pay the insurance (with minimum coverage only) and customs procedures fees on export. Buyer bears additional insurance expences, this can be negotiated with the seller.

FCA (Free Carrier)

Terms of transportation according to which the seller's obligations are considered fulfilled when the cargo cleared of export duties is delivered to the specified location, to the transporter appointed by the buyer. However, the place of delivery influences the responsibility for the loading and unloading the goods, if the loading takes place at the seller's premises, he is also responsible for the shipment; on the contrary, if the delivery occurs at any other place he is not responsible for the shipment. “Transporter” within this term is a person who under the transportation contract will perform or arrange transportation via railway, air, road, river/sea transport, or by combinations thereof. If the buyer has appointed another person other than transporter as the recipient of the goods it is considered that the buyer has fulfilled the delivery obligations after the transfer of the goods to that person. FCA conditions apply to any type of transport, including multimodal transport.

FAS ( Free Alongside Ship)

The exporter is responsible for the goods until they are deposited alongside the vessel, not onboard. After this point the buyer is responsible for the risk. This term is not appropriate unless the buyer is prepared to be directly involved in carrying out the export formalities Note that FAS does not typically apply for goods in containers, which are usually delivered to a terminal (the FCA rule should be used in this instance).

FOB (Free on Board)

The conditions under which the seller must deliver the goods to the port, load them on a ship specified by the recipient, and pay all expenses associated with the delivery of the goods on board. However, the term implies an exception: in some ports, the buyer bears the expenses for loading the goods on the ship. At the same time the seller is responsible for the risk of damage or destruction of the goods before the goods get on board of cargo, and the buyer bears all the risks after crossing. The term means that the cargo is loaded onto the customer’s ship. In addition to the basic conditions, according to the FOB, the seller takes the responsibility for the customs clearance of the goods from fees. The buyer pays for the transportation, insurance, unloading the goods and transportation to the destination. The term FCA is used when the goods are not supposed to move over the board a vessel.

DDP (Delivered Duty Paid)

The term used with an indication of the place of cargo arrival. Until the goods are delivered to the indicated destination in the receiver’s country, the sellers bears all the risks and costs (charges, taxes, other fees on imports) of the delivery, liability for loss or damage to cargo and customs clearance. Upon the arrival of cargo to the indicated destination this liability is removed. However, regardless of the type of delivery, specific provisions may be added that free seller from paying for some additional formalities.

DDU (Delivered Duty Unpaid)

Obsolete Incoterms 2000 term. Replaced by DAP in the Incoterms 2010.

DEQ (Delivered Ex Quay)

Obsolete Incoterms 2000 term. Replaced by DAT in the Incoterms 2010.

EXW (Ex Works)

There is an alternative Russian word "self-delivery" for this term. Seller's liability for the goods ends at the time of its transfer to the buyer or the transporter hired by the buyer in the seller's premises. The seller does not need to load the goods on any collecting vehicle, nor does it need to clear the goods for export, where such clearance is applicable. The buyer bears all the expences on cargo export, its export clearance, transportation, and so on. The term is always used with a reference to the seller's location. Under EXW, the seller undertakes all the expences and risks associated with the transportation of goods from the seller to the destination. Upon the basis of EXW delivery the buyer bears all risks and all expenses associated with the transportation of goods from the seller's premises to a specified destination. Given term thus lays the minimum obligation on the seller, and the buyer has to bear all costs and risks iassociated with the transportation of goods from the seller to the place of destination. EXW terms can not be used when the buyer can not perform directly or indirectly the export formalities.