Archive for the ‘Incoterms’ Category

FAS - Free Alongside Ship (Incoterms 2000)

Sunday, July 29th, 2007

The trade term FAS, or "Free Alongside Ship" means that the seller delivers (i.e. title is transferred to the buyer) when the goods are place alongside the ship at the named port of origination.  At that point the buyer bears the responsibility for loss or damage of the goods.  The ...

CFR - Cost and Freight (Incoterms 2000)

Sunday, July 29th, 2007

In the case of CFR, or Cost and Freight, the seller relinquishes title to the buyer as soon as the goods are loaded onto the ship in the port of origination.  The seller pays the costs of transporting the goods to the named port of destination, but the risk of ...

FOB - Free On Board (Incoterms 2000)

Sunday, July 29th, 2007

"Free on Board" (or F.O.B.) is an international trade term that means that the seller is considered to have delivered the goods (i.e. they change title to the buyer) as soon as they pass the ship's rail at the named port of shipment.  For example, the term "FOB Miami" would mean ...

CIF - Cost, Insurance and Freight (Incoterms 2000)

Saturday, July 28th, 2007

The term "Cost, Insurance and Freight" means that title to the goods changes from seller to buyer when the goods pass the ship's rail at the port from where the goods are being shipped.  In the case of CIF the seller bears the cost of shipping the goods to the ...

EXW - Ex Works (Incoterms 2000)

Saturday, July 28th, 2007

Ex Works (or EXW) means that the seller delivers (i.e. transfers title to the goods) when the goods are placed at the disposal of the buyer at the seller's premises (factory or warehouse etc.) - the goods are not cleared for export and are not loaded onto any vehicle for ...