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Common trade terms

CFR(Cost and Freight)

Indicates that the seller is responsible for the delivery of the goods to the port of destination in accordance with the conditions of the contract and bears the freight charges, but that the buyer is responsible for the insurance of the goods and for the risks at sea.

CIF(Cost, Insurance, and Freight)

Indicates that the seller is responsible for delivering the goods to the port of destination in accordance with the conditions of the contract and bears the freight, insurance and sea risk until the port of destination.

DAP(Delivered at Place)

Indicates that the seller is responsible for delivering the goods to the destination specified by the buyer and that the seller bears all costs and risks until the goods arrive at the destination.

DDP(Delivered Duty Paid)

DDP (Delivered Duty Paid) is a trade term according to which the seller is responsible for delivering the goods to the destination specified by the buyer and bears all costs, risks and taxes such as customs duties.

EXW(Ex Works)

It means that the seller delivers the goods to the named place and the buyer is responsible for all transportation arrangements and costs. It means that the seller's responsibility ends when the goods leave the factory and the buyer is responsible for the costs of transportation, insurance and customs duties on the goods.

FOB(Free On Board)

For the trade term FOB (Free On Board), it means that the seller is responsible for delivering the goods to the port named on the ship, but the buyer is responsible for the costs and liabilities of transportation, insurance, and customs formalities.
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