From time to time in documentation, you may see some abbreviations used which may be unfamiliar to you. Here are some common abbreviations and what they mean which you may find useful:
- FOB
- Free on Board (Named port of shipment) (maritime and waterway transport only.) The seller must place the goods, cleared for export, alongside the vessel at the named port of shipment.
- EXW
- Ex-Works –(Named place) (Any mode of transport) The seller must place the goods at the disposal of the buyer at the seller’s premises or another named place not cleared for export and not loaded on any collecting vehicle.
- CIF
- Cost Insurance and Freight (named port of destination) (Maritime and inland waterway transport only.) The buyer bears all additional costs and risks after the goods have been delivered (over the ship’s rail at the port of shipment) and the seller must procure insurance against the buyer’s risk of loss of, or damage to the goods during carriage.
- DDU
- Delivered Duty Unpaid (named place of destination) (Any mode of transport) The seller must deliver the goods to the buyer, not cleared for import, and not unloaded at the named port of destination.
- DDP
- Delivered Duty Paid (named place of destination) (Any mode of transport) The seller must deliver the goods to the buyer, cleared for import, and not unloaded at the named place of destination.