YRC

Notes
F signifies that the seller must hand over the goods to a nominated carrier free of risk and expense to the buyer. The seller arranges pre-carriage to an agreed point for handing the goods over to the carrier.

C signifies that the seller must bear certain costs even after the critical point for the diversion of the risk of loss of or damage to the goods has been reached.

D signifies that the goods must arrive at the stated destination.

Incoterm 2000 Definitions
The following definitions are brief explanations only. Please refer to a current and complete Guide to Incoterms for the full explanation of the costs and risks associated with each term.

Cost, Insurance and Freight (CIF) (...Named Destination Port): The seller delivers when the goods pass the ship's rail in the port of shipment. Seller must pay the cost and freight necessary to bring goods to named destination port. The risk of loss and damage is the same as cost and freight. The seller also must have marine insurance against buyer's risk of loss/damage during the carriage. The seller must clear the goods for export. Use this term for only sea transport.

Carriage and Insurance Paid to (CIP) (...Named Destination Place): This term is the same as carriage paid to with the exception that the seller also must have insurance against the buyer's risk of loss or damage to the goods during the carriage. Use this term for any mode of transportation.

Cost and Freight (CFR) (...Named Destination Port): This term means the seller delivers when the goods pass the ship's rail in the shipment port. The seller must pay the costs and freight necessary to bring the goods to the named destination port, BUT the risk of loss or damage along with any additional costs because of events occurring after the delivery are transferred from seller to buyer. The seller must clear goods for export. Use this term for only sea transport.

Carriage Paid To (CPT) (...Named Destination Port): This term means that the seller delivers the goods to the carrier he has chosen, but the seller must also pay the cost of carriage necessary to bring the goods to the named destination. The buyer bears all costs occurring after the goods have been delivered. The seller must clear the goods for export. Use this term irrespective of the mode of transport (including multimodal).

Delivered at Frontier (DAF)(...Named Place): This term means that the seller delivers when the goods are placed at the buyer's disposal on the arriving means of transport not unloaded, cleared for export but not cleared for import at the named point and place at the frontier—but before reaching the Customs border of the adjoining country. Use this term when delivering to a land frontier.

Delivered Duty Paid (DDP) (...Named Destination Port): This term represents the maximum obligation to the seller. Do not use this term if the seller cannot directly or indirectly obtain the import license. The term means the same as the delivered duty unpaid term with the exception that the seller also bears all costs and risks of carrying out Customs formalities, including paying duties, taxes and Customs fees.

Delivered Duty Unpaid (DDU) (...Named Destination Port): This term means the seller delivers the goods to the buyer, not cleared for import and not unloaded from arriving means of transport at the named destination place. The seller bears all costs and risks involved in bringing the goods to the named place other than duty (which includes the responsibility for Customs formalities and paying those formalities, duties and taxes) for import into the destination country. The buyer is responsible for paying all customs, duties and taxes.

Delivered Ex Quay (DEQ) (...Named Destination Port): The terms are same as delivered ex ship (DES) with the exception that the seller is responsible for placing the goods at the buyer's disposal not cleared for import on the quay (wharf) at the named destination port. The seller bears all costs and risks as in DES, plus discharging the goods on the quay. Use this term in only sea transport.

Delivered Ex Ship (DES) (...Named Destination Port): Seller delivers when goods are placed at the buyer's disposal on board the ship not cleared for import at the named destination port. The seller bears all costs and risks in bringing the goods to the named port before discharging. Use this term only when the goods are to be delivered by sea.

Exworks (EXW): This term represents the seller's minimum obligation because the seller must only place the goods at the disposal of the buyer. The buyer must carry out all tasks of export and import clearance. The buyer also arranges carriage and insurance.

Free Alongside Ship (FAS) (...Named Port of Shipment): This term means that the seller delivers when the goods are placed alongside the vessel at the named shipment port. The seller must clear the goods for export. The buyer must bear all costs and risks of loss or damage to the goods from that moment. Use this term for only sea transport.

Free Carrier (FCA) (...Named Place): This term means that the seller delivers the goods—cleared for export—to the carrier the buyer chose at the named place. The seller pays for carriage to the named place.

Free on Board (FOB) (...Named Port of Shipment): This term means that the seller delivers when the goods pass the ship's rail at the named shipment port. This means the buyer must bear all costs and risks to the goods from that point. The seller must clear the goods for export. Use this term for only sea transport. If the parties do not intend to deliver the goods across the ship's rail, they should use the FCA term.

Important: The above definitions are brief overviews only. They are not intended to be all-inclusive of associated costs and risks.

We recommend that when you call any tranportation provider or freight forwarder for a rate quote, you tell the company what Incoterm you are using on the order so the company can include all necessary charges that could be incurred.