Ex works (EXW) is an Incoterm. It means that the seller X has the goods ready for collection at his premises (Works, factory, warehouse, plant) on the date agreed upon. The buyer pays all transportation costs and bears all risks for bringing the goods to their final destination. This term requires that the buyer must be able to carry out export formalities in the country of supply,these days almost impossible. Therefore in the vast majority of cases where terms are quoted EXW they actually intend the seller to carry out export formalities which means that the correct term is FCA (Seller's premises).
Free Carrier (FCA) is an Incoterm. The seller delivers the goods into the custody of the first carrier, and this is where risk passes from seller to buyer. Thebuyer pays for the transportation.
It can be used for all modes of transportation including multimodal transport, such as in shipping containers where the ship's rail plays no relevant part in determining a shipping point.
FCA is also the term to use in place of FOB for airfreight transactions.
Free Alongside Ship
Free Along Side (FAS) is an Incoterm.. It means that the seller pays fortransportation of the goods to the port of shipment. The buyer pays loading costs, freight, insurance, unloading costs and transportation from the port of destination to his factory. The passing of risk occurs when the goods have been delivered to the quay at the port of shipment.
Free On Board
FOB, is an abbreviation for Free On Board. The term commonly used when shipping goods, to indicate who paysloading and transportation costs, and/or the point at which the responsibility and ownership of the goods transfers from shipper to buyer.
FOB stands for "Free On Board". Indicating "FOB" means that the seller pays for transportation of the goods to the port of shipment, plus loading costs. The buyer pays freight, insurance, unloading costs and transportation from the arrival port to the finaldestination. The passing of risks occurs when the goods pass the ship's rail at the port of shipment. Internationally the term specifies the port of loading, e.g., "FOB New York" or "FOB Vancouver."
Cost and Freight
Cost and Freight (CFR) is an Incoterm. It means that the seller pays for transportation to the Port of Loading (POL), loading and freight. The buyer pays for the insurance andtransportation of the goods from the Port of Discharge (POD) to his factory. The passing of risk occurs when the goods pass the ship's rail at the port of shipment which means that this term cannot be used for airfreight or land transport and also is inappropriate for most containerised sea shipments - the term CPT is the appropriate one for these.
Cost, Insurance and Freight
Cost, Insurance andFreight (CIF) is a common term in a sales contract that may be encountered in international trading when ocean transport is used.
When a price is quoted CIF, it means that the selling price includes the cost of the goods, the freight or transport costs and also the cost of marine insurance. CIF is an international commerce term (Incoterm.).
CIF is identical in most particulars with Cost and Freight(CFR), and the same comments apply, including its applicability only to conventional maritime transport. In addition to the CFR responsibilities, the seller under CIF must obtain in transferable form a marine insurance policy to cover the risks of transit with insurers of repute. The policy must cover the CIF price plus 10 per cent and where possible be in the currency of the contract. Note thatonly very basic cover is required equivalent to the Institute "C" clauses, and buyers should normally insist on an "all-risk" type of policy such as that under the Institute "A" clauses. The seller's responsibility for the goods ends when the goods have been delivered on board the shipping vessel. In the guidelines for CIF published in Incoterms 2000 the term "carrier" does not appear and it...