CIF - Cost, Insurance And Freight
Cost, Insurance and Freight (CIF) is followed by a named port of destination. It is similar to CFR. But there is the additional requirement for the seller. He has to purchase insurance against the risk of loss or damage to goods. And the seller must pay the premium.
CPT – Carriage Paid To
CPT is followed by a named place of destination and means Carriage Paid To. The seller must pay the freight for the carriage of the goods to the chosen destination. In this case, the risk of loss or damage to the goods and any cost increases transfers from the seller to the buyer. But this is only when the goods have been delivered to the custody of the first carrier, and not at the ship's rail.
CIP - Carriage And Insurance Paid To
CIP is similar to CPT as it has the same meaning. It is followed by a named place of destination. With CIP the insurance against loss of damage is paid by the seller.
Destination
DAF – Delivered At Frontier
The buyer becomes responsible for the freight when the goods arrive at the frontier. But the seller is obliged to deliver the cargo at the named border post with the seller clearing customs on his side for exports. The buyer is also responsible for the cost of the goods to clear customs.
DES - Delivered Ex Ship
DES means that the seller is obliged to deliver the cargo right up to the point when the ship arrives alongside the named port of discharge. The buyer has full control of the carriage and the shipper takes all the risk and cost till it is delivered at the named port of discharge.
DEQ - Delivered Ex Quay
DEQ obliges the seller to make the goods available to the buyer on the quay at the place named in the sales contract.
DDU – Delivered Duty Unpaid
With DDU the seller has to deliver the cargo at the named place of delivery excluding the payment of customs duty. But at the same time, he is dependent on the buyer to be able to arrange for customs clearance at the first port of entry for that named destination.
DDP - Delivered Duty Paid
Delivered Duty Paid is followed by a named place of destination. It obliges the seller to pay the expenses involved in shipping the goods as well as the expenses and risks of carrying out customs formalities. The duty is paid by the seller. As for the buyer, he has to pay any extra costs caused by its failure to clear the goods for import in time. If the seller is unable to get an import license, then it is impossible to use DDP.
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