International Logistics Trade Terms

1. EXW ( Ex Works ) : Delivery at the factory
This refers to the completion of delivery when the seller makes the goods available for disposal by the buyer at their location or another designated place (such as a factory or warehouse), without handling export customs clearance or loading the goods onto any transport. This term places the least responsibility on the seller.

2. FOB ( Free On Board ) : Delivery on board 
A transaction conducted at the cost of goods, where the buyer is responsible for arranging the shipment. The seller must load the goods onto a vessel designated by the buyer at the port of shipment and within the time specified in the contract, and promptly notify the buyer. The risk transfers from seller to buyer when the goods cross the ship’s rail during loading.

3. DDU ( Delivered Duty Unpaid ) : 
The seller delivers the goods to the buyer at a specified destination without handling import formalities or unloading the goods from the means of transport, thus completing the delivery. The seller is responsible for transporting the goods to the destination and bears all costs and risks, while the buyer must pay all relevant import taxes and duties.

4. DDP ( Delivered Duty Paid ) : 
Refers to the seller delivering the goods to the buyer at a specified destination, having completed import customs clearance procedures, while the goods are still on the delivery transport vehicle. The seller is responsible for transporting the goods (including related costs) and paying all import taxes and duties that should be paid when passing through customs.

5. DAP ( Delivered At Place ) :
Refers to the seller delivering the goods to the buyer’s designated destination using a means of transport, handing over the goods loaded on that transport (without unloading) for the buyer to dispose of, thus completing the delivery.

6. DAT ( Delivered At Terminal ) :
Refers to the seller delivering the goods to the buyer’s disposal after unloading at a designated destination or terminal, thus completing the delivery. The seller shall bear all risks and costs of transporting the goods to the designated destination or terminal (excluding import costs).

7. FAS ( Free Alongside Ship ) :
Refers to the seller completing the customs clearance procedures required for exporting the goods and delivering them alongside the ship at the designated port of shipment, thus fulfilling the delivery. After this point, the buyer is responsible for any costs (such as transportation to the final destination) and bears the risk of loss or damage to the goods.

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