Key point

Seller makes goods available at seller's location. Buyer handles all transport and export formalities. Lowest seller responsibility. Buyer arranges inland pickup, export clearance, main carriage and insurance.

Best when

Buyer has reliable freight/clearance in seller's country. Buyer bears most of the logistics and risk after pickup.

Key point

Seller loads goods on board at the named port and clears export; risk transfers when on board. Seller handles export clearance and loading; buyer pays sea freight, main insurance and import clearance.

Best when

Common for sea shipments of vehicles. Buyer should arrange insurance from port of shipment onward (unless CIF).

Key point

Seller pays freight and minimum insurance to destination port; risk still transfers when loaded on vessel. Seller covers sea freight and basic insurance to the destination port. Buyer handles import clearance and inland delivery.

Best when

Insurance provided by seller is minimum — buyer may want additional coverage. Used widely for ocean shipments where seller arranges main carriage.

Key point

Seller pays freight to destination port but does not provide insurance. Risk transfers on board. Buyer should arrange cargo insurance separately. Otherwise similar to CIF in terms of freight responsibility.

Best when

Good when buyer prefers to control insurance terms.

Key point

Seller delivers goods to a carrier or another person nominated by the buyer at the seller's premises or another named place. Buyer takes responsibility from that point. Seller delivers the goods to the carrier chosen by buyer. Buyer assumes main transport, insurance, and import clearance.

Key point

Seller delivers goods alongside the ship at the named port of shipment. Buyer bears all costs and risks from that point. Buyer arranges main carriage, insurance, and import clearance. Seller responsibility ends once goods are placed alongside the ship.

Key point

Bank payment guarantee: buyer's bank pays seller when documentary conditions are met — reduces payment risk. Useful for higher-value or first-time transactions; documents must precisely match L/C terms to get paid.