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Cost/Risk Distribution Display

The following display indicates how the seller's and buyer's cost/risk responsibilities vary from one INCO-TERM to another.

 
          
SELLER
country of export
BUYER
country of import
     
   
 EXPORT                   IMPORT
  CLEARANCE            CLEARANCE
 
Under EXW, the seller minimizes his risk by only making the goods available at his own premises. EXW
Under F. Terms, the seller arranges and pays for pre-carriage in the country of export
including export clearance under
FCA
  FAS
including export clearance under FOB
Under C-terms, the seller arranges and pays for the main carriage but without assuming the risk of the main cariage. CFR
  CIF
  CPT
  CIP
Under D-terms, the seller's cost/risk is maximized because he must make the goods available upon arrival at the agreed destination
DAF
  DES
including import clearance under  
  DDU
including import clearance under DDP
   
   

 

 

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