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1-EXW (COLLECTION AT PREMISES)

EXW (Ex works) means that the seller 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 also bears the 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. In this method, the seller has the minimum responsibility.

2-FCA (DELIVERED INTO THE CUSTODY)

FCA (Free Carrier) means that the seller delivers the goods into the custody of the first carrier, and this is where risk passes from seller to buyer. The buyer pays for the transportation. If the delivery is performed where the seller is located, the seller will be responsible for the shipping procedures. 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.

3-FAS (DELIVERED AT THE PORT OF SHIPMENT)

FAS (Free Along Side) means that the seller pays for transportation 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. Custom clearance procedures performed by the seller in accordance with the Incoterms 2000, however, it may be performed by the buyer if it is stated in the agreement.

4-FOB (DELIVERED ON BOARD)

FOB (Free On Board) is a term commonly used when shipping goods, to indicate who pays loading and transportation costs, and/or the point at which the responsibility and ownership of the goods transfers from shipper to buyer. "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 port of destination to the factory. The passing of risks occurs when the goods pass the ship's rail at the port of shipment. Used only for maritime and territorial waters transport.

5-CFR (FREIGHT PAID TO THE PORT OF DISCHARGE)

CFR (Cost and Freight) means that the seller pays for transportation to the Port of Loading (POL), loading and freight. The buyer pays for the insurance and transportation 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 and the seller is also required to clear the goods for export

6-CIF (FREIGHT & INSURANCE PAID TO THE PORT OF DISCHARGE)

CIF (Cost, Insurance and Freight) 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 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. Used only for maritime and territorial waters transport

7-CPT (FREIGHT PAID TO THE DESTINATION)

CPT (Carriage Paid To) can be used for all modes of transport including multimodal transport. The seller pays for the freight to the named point of destination. The buyer pays for the insurance. The passing of risk occurs when the goods have been delivered into the custody of the first carrier.

8-CIP (FREIGHT & INSURANCE PAID TO THE DESTINATION)

CIP (Carriage and Insurance Paid to) means that the passing of risk occurs when the goods have been delivered into the custody of the first carrier. This means that the buyer bears all risk and any additional costs occurring after the goods have been so delivered. Seller is required to obtain insurance only on minimum cover; additional coverage is responsibility of buyer or must be agreed between seller and buyer. Under CIP seller is also required to clear the goods for export.

9-DAF (DELIVERED AT FRONTIER)

DAF (Delivered At Frontier) can be used when the goods are transported by rail and road. The seller pays for transportation to the named place of delivery at the frontier. The buyer arranges for customs clearance and pays for transportation from the frontier to his factory. The passing of risk occurs at the frontier.

10-DES (DELIVERED EX SHIP)

DES (Delivered Ex Ship) means that the passing of risk does not occur until the ship has arrived at the named port of destination and the goods made available for unloading to the buyer.

11-DEQ (DELIVERED EX QUAY, CUSTOMS DUTY PAID)

DEQ (Delivered Ex Quay) means the same as DES, but the passing of risk does not occur until the goods have been unloaded at the port of destination.

12-DDU (VARIŞ YERİNDE GÜMRÜK VERGİSİ ÖDENMİŞ OLARAK TESLİM)

DDU (Delivered Duty Unpaid) means that the seller pays for all transportation costs and bears all risk until the goods have been delivered, but does not pay for the duty. Seller bears all costs and expenses for the transportation, damage and other costs except for the customs duty. In this case, the buyer will be responsible for any cost, expense and the damages resulted by the delay of the compliance of customs clearances. The parties should state any other demand related to the customs clearance in the agreement.

13-DDP (DELIVERED AS CUSTOMS DUTY PAID)

DDB (Delivered Duty Paid) means that the seller pays for all transportation costs and bears all risk until the goods have been delivered and pays the duty.

Other Points to be Noticed
1. The location must be stated together with all incoterms.
2. the name of the place stated together with the incoterms starting with letter “F” means the place where the good will be delivered
3. FOB, CFR, CIF terms are only used for maritime transportation while FCA, CPT and CIP terms are used for land or railway transportation.
4. The name of the place stated together with the incoterms starting with letter “C” means the place to which the transportation, insurance and other expenses are covered for the delivery of the goods.