Incoterm (International Commercial Terms)

The incoterm is an abbreviation of International Commercial Terms, which provide a common set of rules for the most often used international terms of trade.

EXW (Ex-works)
Ex means from. Works means factory, mill or warehouse, which is the seller's premise. EXW applies to goods available only at the seller's premises. Buyer is responsible for loading the goods on truck or container at the seller's premises, and for the subsequent costs and risks.

FOB (Free on board)
The delivery of goods on board the vessel at the named port of origin (loading), at seller's expense. Buyer is responsible for the main carriage/freight, cargo insurance and other costs and risks.

CFR or C&F (Cost and Freight)
The delivery of goods to the named port of destination (discharge) at the seller's expense. Buyer is responsible for the cargo insurance, import duties, VAT, final delivery and other costs and risks. The term CFR was formerly written as C&F . Many importers and exporters worldwide still use the term. The clearance will be then done by a local agent under your supervision and you will pay for those charges including the VAT and custom duties.