EXW – EXWORKS In the simplest sense, EXW delivery method is meant for the exporting company to deliver the goods in its own business. The exporter firm receives the goods from the exporter’s warehouse through its own carrier on the specified date to the importer order of the goods purchased in its own commercial enterprise. All costs and risks that may arise from the door of the exporter such as internal transportation, loading, export customs clearance, freight (international transportation fee), insurance cost, unloading cost, import customs clearance in the exporting country belong to the buyer (importer).
FCA – FREE CARRIER It is the form of sales that the exporter company is obliged to deliver the goods to the carrier company determined by the buyer (importer) at the mutually agreed place, with export customs clearance. The exporter company delivers the goods to the importer’s carrier by paying the export customs clearance costs and the domestic transportation fee, if any, up to the place of delivery. The party that will pay the shipping fee in international trade has the right and responsibility to choose the carrier. Therefore, in FCA, the carrier is usually an institution determined by the importer (buyer). In case of need, an exporter may determine a company provided that the transportation fee belongs to the importer in order to assist the importer. The importer company should be aware that the goods that are delivered to the carrier bear all international expenses such as international transportation fee (freight), insurance, evacuation when it arrives in its own country, customs duty, and domestic transportation.
FAS- FREE ALONGSIDE SHIP It means that the exporter delivers the goods subject to sale at the port where the ship agreed on the determined date. Expenses up to the port, domestic transportation fee in the exporting country are covered by the exporter company. All costs after the port delivery, such as export loading cost and risk at the port, freight to be paid to the carrier (international transportation fee), belong to the importer. In the form of FAS delivery, the exporter pays the domestic transportation fee in his country by bringing the goods to the port and delivers the goods to the port determined by the importer by bringing the goods to the port.
FOB – FREE ON BOARD It is a delivery method that means that the exporter company ensures that the goods covered by the contract are loaded on the ship at the specified date and port, and that it assumes all costs and risks that may arise so far. In the form of FOB delivery, the exporter basically covers the internal transportation fee between the company and the port, customs clearance and loading costs at the port. The importer company is considered to bear the costs, such as the freight fee and the insurance of the goods against risks associated with international transportation.
CFR – COST AND FREIGHT It is a form of delivery based on the principle that the exporter company brings the goods under the sales contract to the port of origin and loads it on the ship and pays the transportation fee to the port of destination. The responsibility of insuring the goods against damages that may occur during the transportation of the goods belongs to the importer. CFR delivery method is used only in maritime transport according to the issues determined in the INCOTERMS bulletin prepared by the International Chamber of Commerce. In other types of transportation such as airline, road, rail, it is essential to use the below CPT delivery method.
CIF – COST, INSURANCE AND FREIGHT It means that the exporter brings the export goods to the exit port and loads them on the ship and undertakes the insurance cost as well as the transportation fee to the port of destination. CIF delivery is generally the most controversial and most controversial delivery method in the market. In this type of delivery, the exporter pays the freight of the goods he has loaded on the ship to the port of destination, as well as the insurance himself. However, paying the freight and getting the insurance does not mean that the place of delivery of the goods is the country of destination. The exporter only undertook the cost of these processes and pursued a pricing policy accordingly. For this reason, in the agreements made on CIF delivery method, the importer company should be very careful and aware that the risk on its own is insured by the exporter. Therefore, it is useful to warn the exporter to have an insurance that covers all risks.
CPT – CARRIAGE PAID TO It means that the exporter company delivers the goods to the forwarder at the exit by customs clearance and loading, with the freight paid to the designated destination. The basic logic and operation in the form of CPT delivery is actually no different from CFR. The only difference is that this delivery method is used on airline, road and rail. According to this very little known but legally known issue in the market, the CFR delivery method is used only in maritime transport, while the CPT is used in other transport types.
DAT – DELIVERED AT TERMINAL It is a form of delivery used to deliver the goods sold by the exporter company to the designated terminal in the country of the importer, at its own expense. The main purpose of the DAT delivery method has been that it is possible to use DAT for all types of transport. It is aimed to provide an opportunity to be understood not only in seaway but also in air, land, and railway transportations in the destination country in the destination country, in the bonded area, to make delivery.
DAP – DELIVERED AT PLACE It is a form of delivery by the exporter company, which means that the goods are unloaded by the means of transportation and delivered at the point of the importing country, on behalf of the buyer. In the form of DAP delivery, the place of delivery is not necessarily the warehouse of the buyer, it is possible to be any point, any place agreed.
DDP – DELIVERED DUTY PAID It is a form of delivery based on the responsibility of the exporter company to take the import customs duties to the warehouse of the importer at the specified address. When analyzed within the framework of market habits, the delivery place is determined as the address of a warehouse or warehouse, which is usually determined in the importer’s workplace or country, and in this case, the DDP delivery method is almost the opposite of the EXW delivery method.