A program introduced by the International Chamber of Commerce (ICC) to standardize the terms used in international trade. There are a total of 11 delivery methods.

1.Cost and Freight (CFR): Cost of goods and freight delivery in international trading, used only for maritime and inland water transportation. The seller delivers the goods to the loading port by undertaking all costs and risks, and the goods are brought onto the ship after the customs duty for export is paid. Risk of damage and loss of goods transfers to the buyer once the goods are loaded onto the ship; costs are transferred to the buyer at the destination port.

2.Cost, Insurance and Freight (CIF): Cost of goods, insurance and freight delivery in international trading, used only for maritime and inland water transportation. The seller delivers the goods to the loading port by undertaking all costs and risks, and the goods are brought onto the ship after the customs duty for export is paid. In addition, the seller draws up an insurance agreement for the minimum coverage amount in the name of the buyer, to protect against loss or damage sustained during shipment. Risk of damage and loss of goods transfers to the buyer once the goods are loaded onto the ship; costs and risks are transferred to the buyer at the destination port.

3.Carriage and Insurance Paid To (CIP): Cost of goods, insurance and freight delivery in international trading. It is used for all types of transportation. Seller delivers the exported, customs duty-paid goods to a forwarder of its choice or to another party at a designated location (if the parties agreed to such a place) and pays the transportation costs. Seller draws up an insurance agreement and pays for the minimum coverage required based on the loaded goods.Seller is considered to have completed its delivery obligation not when the goods are delivered to the destination, but when they are delivered to the forwarder.

4.Carriage Paid To (CPT): Cost of goods and freight delivery in international trading. It is used for all types of transportation, especially multi-vehicle transportation. Seller delivers the exported goods, after the related customs duty is paid, to a forwarder of its choice or to another party at a designated location (if the parties agreed to such a place) and pays the transportation costs. As a general rule, all goods-related risks and non-freight expenses are transferred to the buyer when the goods are handed over to the first freight forwarder.

5.Delivered At Place (DAP): Cost of goods, insurance, freight, and domestic transportation-paid delivery method in international trading that is used for all types of transportation, including multi-transportation. Seller delivers the goods into the possession of the buyer at the designated destination without unloading them from the transportation vehicle. Seller undertakes all damages and costs related to transportation of the goods to the designated destination. Seller undertakes all costs until the destination is reached; the buyer is responsible for customs transactions and costs.

6.Delivered At Terminal (DAT): Cost of goods, insurance, freight, and domestic transportation delivery in international trading. It is used for all types of transportation, including multi-transportation.Seller delivers the goods into the possession of the buyer at the designated destination or port terminal. The seller unloads the goods from the transportation vehicle. In DAT, the goods are delivered to the buyer and the seller undertakes any unloading costs incurred at the terminal point designated by the buyer and seller.

7.Delivered Duty Paid (DDP): Cost of goods, insurance, freight, and domestic transportation delivery in international trading. It is used for all types of transportation, including multi-transportation. Seller’s delivery liability ends once the seller prepares the goods for disposal at the designated location in the import country. Seller bears the risks and expenses, including taxes, duties and other fees, required to transport the goods to that point, as well as costs related to clearing import customs.

8.Ex Works: An international trading delivery method that involves only the cost of goods and requires the seller to deliver goods at its own warehouse or place of business.Upon delivery of goods, all expenses, risks and other liabilities related to the goods are undertaken by the buyer. The seller is not required to load the goods onto a transportation vehicle, nor is it required to deal with customs.

9.Free Alongside Ship (FAS): An international trading delivery method that is used in maritime and inland water transportation, with the cost of goods and internal shipping fees to the port having been paid. Seller completes export customs clearance and delivers the goods alongside the ship at the port designated by the buyer.Buyer is responsible for risks such as loss or damage to the goods after delivery. From this point on, buyer pays all expenses and freight for the goods.

10.Free Carrier (FCA): An international trading delivery method that is used in all type of transportation methods with the cost of goods, and internal shipping fees to the designated location have been paid. Seller’s liability ends after the goods have been delivered, with customs clearance completed, to the freight forwarder designated by the buyer at the location stated by the buyer. If the buyer designates an individual that is not a freight forwarder, seller is considered to have fulfilled its obligation upon delivery of goods to this person.

11.Free Alongside Ship (FAS): An international trading delivery method that is used in maritime and inland water transportation with the cost of goods and internal shipping fees to the port have been paid. Seller completes export customs clearance and delivers the goods on board the ship at the port designated by the buyer. Buyer is responsible for all damages, losses and expenses that may occur after the goods have been loaded onto the ship.