Payment Methods in International Trade

FCA: Free Carrier

It is a type of contract between the exporter and the importer, and it is a term for shipping means the delivery of the goods to the buyer or the party acting on his behalf at the port of shipment or at the place of delivery, that is, after the payment of customs duties and export-related fees, and thus the responsibility for the goods is transferred to the recipient, and if the delivery is in the seller’s land the seller is responsible for the loading and if the delivery is in any other place The seller is responsible for downloading the goods.

Production Delivery

It is the value of the goods at the place of production, i.e. all expenses for shipping, unloading, handling, and loading from the place of production to the place of arrival and receipt of the goods for the buyer, which the buyer pays from all expenses.

 CPT: Carriage Paid to

Means that the seller undertakes to deliver the goods to the buyer, who has paid for the purchase, but not the transport.

This means that the seller bears all obligations regarding the costs of the service the buyer, in return accepts all risks to him.

Also read: The Importance of Seaports

CIP: Carriage and Insurance Paid To

After the goods are prepared by the seller, the seller himself delivers these goods to a carrier and bears all transportation costs until the goods reach the point agreed upon between the seller and the buyer or the importer and the buyer bears all the risks and other costs when receiving the goods

In this case, insurance is required for the risks that the buyer may cause so that the loss or damage to the goods is covered during the transportation process to the buyer.

DAF Delivered at Frontier

It is for the seller to fulfill his obligation to deliver when he places the goods at the disposal of the buyer on the means of transportation arriving at the port or the place designated before the customs area is not departed from the means of transport, sincere for export but not sincere for import and therefore it is very important to define the relevant borders accurately by naming the point and place in the term Always whether it is a port or crossings, the seller bears all the risks of losing or damaging the goods until the goods are delivered.

Delivered Ex ship DES

It is for the seller to fulfill delivery when he places the goods at the disposal of the buyer on board the ship, and the seller has to bear all expenses and risks arising from the delivery of the goods.

 Delivered Ex quay DEQ

This term is used only in the cases of maritime transport, transport through inland waterways, or multi-modal transport on boats within the port of arrival.

 The seller bears all risks, but before delivery, but after delivery, the buyer is responsible for any damage or loss in the goods after delivery to that port.

 DDP: Delivered Duty Paid

It is a delivery of pure customs, which is what is called from door to door, the seller responsible for bringing the goods to the port, paying any duty on him and making the goods available to the buyer and the risk transfers responsible by the seller as soon as they arrive the buyer turns to him.

 DDU: Delivered Duty Unpaid

It means the seller delivers the goods to the buyer to the place specified in the sales contracts where the seller is responsible for delivering the goods safely to a specific destination while paying all expenses for transportation and customs clearance, and the seller bears the risks and costs associated with supplying the goods to the delivery site where the buyer becomes responsible for paying duties and taxes.

Also read: The Most Important Arab Seaports

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