5. CFR - "Cost And Freight"
The seller is reponsible for delivering to and loading the goods on board of the ship. The seller must also pay for shipment to the destination port, as well as port costs and export clearance.
The buyer is responsible for the goods once they are loaded onto the ship, as well as the cost
of insurance for transport on the ship.
Notes: This incoterm applies only to seafreight and inland waterways and should only be used for goods not packaged in a container.
6. CIF - "Cost, Insurance, and Freight"
The seller has the same obligations as in CFR, and is also responsible for insuring the goods during transport from the port of shipping to the port of destination. The insurance should cover the price of the contract plus 10%.
The buyer has the same resposibilities as in CFR, minus the obligation to insure the goods during transport between ports. However, the buyer may wish to consider purchasing additional insurance as the seller is only required to buy the minimum.
Notes: This incoterm applies only to seafreight and inland waterways and should only be used for goods not packaged in a container.
7. CPT - "Carriage Paid To"
The seller is responsible for paying for transport to the designated location, usually in the buyer's country, as well as all export fees. However, the buyer assumes the risks once the goods are delivered to the first carrier.
The buyer assumes all risks when the goods are delivered to the first carrier and is responsible for insuring the goods. Once the goods reach the desginated location, the buyer assumes all further transport costs and risks.
Notes: This replaces C&F and CFR for all shipping modes except non-containerized seafreight.
8. CIP - "Carriage and Insurance Paid to"
The seller is responsible for the same costs and obligations as with CPT, as well as being responsible for insuring the goods at 110% of the contract value.
The buyer is responsible for the same costs and obligations as with CPT, minus any obligation to insure the goods.
Notes: CIP can be used for all modes of transport, where CIF is only for non-containerized seafreight.
9. DAP - "Delivery at Place"
The seller must deliver the goods ready for unloading in the country of destination, in a place other than a transport terminal, such as the buyer's premises or a place nearby. The risk is transferred to buyer at the location where the goods are delivered.
The buyer must arrange for import customs clearance and pay associated costs. The buyer is also responsible for unloading the goods at the destination.
10. DAT - "Delivery At Terminal"
The seller must deliver and unload the goods at a specified terminal, such as a port or airport. The seller is responsible for all costs until the goods are unloaded, including destination port fees.
The buyer must arrange for import customs clearance and pay associated costs.
11. DDP - "Delivery Duty Paid"
The seller must deliver the goods to the specified location and cover all costs and risks, including customs clearance and import duties, including VAT, in the country of destination.
The buyer is responsible only for unloading the goods at the final destination.
Notes: This incoterm places maximum risk and costs on the seller, unless otherwise specified in the contract of sale. In these cases, a variant of the incoterm may be used, such as "DDP VAT Unpaid" for when the seller is not responsible for VAT. Exporters often run into difficulty clearing customs in the importer's country, and so importers should use this incoterm with caution.