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SHIPPING TERMINOLOGY

Word / phrase		Explain
DDU	Delivered Duty Unpaid	DDU's English is " Delivered Duty Unpaid ( ... Named Place of Destination )", that is, " Unpaid Delivery ( ... Designated Destination" ). It means that the seller will deliver the prepared goods at the place designated by the importing country, and shall bear all the costs and risks of transporting the goods to the designated place ( excluding customs duties, taxes and other official fees payable upon import ), in addition, the seller shall bear the costs and risks of handling customs formalities. The difference between DDP trade terms and DDU trade terms is that DDU does not pay taxes, similar to EXW trade terms.
FAS	Free Along Ship	According to the interpretation of General Principles 2010, the contract is concluded in FAS terms, and the seller is required to deliver the goods specified in the contract to the ship side designated by the buyer at the designated port of shipment within the agreed time and complete the delivery obligation at the ship side. The risks and expenses borne by both buyers and sellers are bounded by the ship's edge. If the ship dispatched by the buyer cannot land, the seller shall be responsible for transporting the goods to the side of the ship by barge and still delivering the goods on the side of the ship. The responsibility and cost of shipment shall be borne by the buyer.
DDP	Delivered Duty Paid	DDP means that the " delivered duty paid ( ... designated destination )" seller must bear all risks and expenses of transporting the goods to the designated destination, including any " taxes" payable at the destination when customs formalities are required ( including the responsibilities and risks of customs formalities, as well as fees, duties, taxes and other expenses ). The seller bears the minimum responsibility under EXW terms, while the seller bears the maximum responsibility under DDP terms. If the seller cannot obtain the import license directly or indirectly, this term should not be used. However, if the parties wish to exclude from the seller's obligations all expenses ( such as value-added tax ) to be paid at the time of any import, it shall be clearly stated in the sales contract. If the parties want the buyer to bear the risks and costs of import, DDU terminology should be used.
DAT	Delivered at Terminal	DAT is a new term for Incoterms 2010 and is intended to replace DEQ term in Incoterms 2000. " Transport Terminal" means any location within the importing country, regardless of whether the location is covered, such as docks, warehouses, container yards or roads, railways and air cargo terminals. When DAT terms are used, the seller delivers the goods at the transportation terminal of the designated port or destination. And the seller is responsible for unloading the goods from the arriving means of transport, which is similar to DEQ in Incoterms 2000. However, the DEQ term is to deliver goods at the port of destination, and the seller's responsibility is limited to transporting the goods to the port of destination and unloading them to the port of destination, and he is not responsible for transporting the goods from the port to other places. Although the delivery place of DAT is no longer restricted by the wharf, the seller's responsibility is still to deliver the goods to the transportation terminal agreed in the contract. DAP or DDP terms should be used if both parties want the goods to be transported by the seller from the transportation terminal to another place and bear the risks and expenses in between.
CIP	Carriage ,Insurance Paid to	CIP ( Carriage and Insurance Paid To ) means that the seller delivers the goods to its designated carrier, during which the seller must pay the freight for transporting the goods to the destination and insure the buyer's goods against the risk of loss or damage in transit. That is, the buyer bears all the risks and extra expenses after the seller delivers the goods.
CPT	Carriage paid to	CPT means " freight paid to ( ... designated place )". CPT trade term means that the seller delivers the goods to its designated carrier, but the seller must also pay the freight for transporting the goods to the destination. CPT term means that the buyer bears all risks and other expenses after delivery. " Carrier" means any person who, in a contract of carriage, undertakes to carry out the carriage by rail, road, air, sea, inland waterway or a combination of the above. If the goods are also transported to the agreed destination using the carrier receiving them, the risk is transferred from the time the goods are handed over to the first carrier.

Word / phrase		Explain
FCA	Free Carrier	FCA trade term refers to the delivery of goods to the carrier ( ... designated place ). FCA term refers to the completion of delivery by the seller as long as the goods are delivered to the carrier designated by the buyer at the designated place and cleared for export. FCA can be used in various modes of transport, including multimodal transport. It should be noted that the choice of delivery location will have an impact on the obligation to load and unload goods at that location. If the seller delivers in its place, the seller shall be responsible for loading, and if the seller delivers in any other place, the seller shall not be responsible for unloading. " Carrier" means any person who undertakes to perform transportation by rail, road, air, sea, inland waterway or a combination of the above in a contract of carriage or by another person. If the buyer designates a person other than the carrier to take delivery of the goods, the seller will be deemed to have fulfilled the obligation of delivery when he delivers the goods to this person.
EXW	Ex works	EXW trade term means factory delivery … ( designated place ). The trade term EXW means when the seller delivers the goods to the buyer at its place or other designated place for disposal, the seller will not clear the export customs or load the goods into any means of transport. EXW is the term that the seller bears the least responsibility. The buyer must bear all the costs and risks of taking delivery of the goods at the seller's place. However, if both parties want the seller to be responsible for loading the goods at the time of shipment and bear the full cost and risk of loading the goods, it must be clearly stated in the sales contract. When the buyer cannot go through the export formalities directly or indirectly, the term should not be used, but FCA should be used instead
CFR	Cost and Freight	CFR is applicable to water transportation. the basic obligation of the seller is to load the goods onto the ship and notify the buyer in a timely manner within the loading port and the stipulated time limit stipulated in the contract. The risk is transferred from the seller to the buyer when the goods cross the ship's rail at the time of shipment. In addition, the seller must obtain an export license or other official documents at his own risk and expense, and go through the export formalities of the goods. The above obligations are the same as those assumed by the seller under fob conditions. The difference is that under CFR conditions, the seller will assume the responsibility and cost of entering into a contract of carriage with the ship. The seller shall be responsible for chartering and booking the cargo and paying the freight to the designated destination port, including the loading fee and the unloading fee that the liner company may charge when contracting. However, the buyer is still responsible for the cargo insurance from the port of shipment to the port of destination.
CIF	Cost Insurance and Freight	CIF international trade terms refer to cost, insurance and freight, while cif trade terms refer to the completion of delivery by the seller when the goods cross the ship's rail at the port of shipment. The seller must pay the freight and expenses needed to transport the goods to the designated destination port, but the risk of loss of or damage to the goods after delivery and any additional expenses caused by various events will be transferred from the seller to the buyer. However, under cif conditions, the seller must also insure the buyer's goods against the risk of loss or damage in transit.
DAP	Deliver at Place	It means that the seller delivers the goods at the designated destination and only needs to prepare for unloading and complete the delivery without unloading. The term refers to arriving vehicles including ships and destinations including ports. The seller shall bear all risks and expenses ( except import expenses ) for transporting the goods to the designated destination. This term applies to any mode of transportation, multimodal transportation and sea transportation.
FOB	Free on Board	For transactions carried out at fob price, the buyer is responsible for dispatching the ship to pick up the goods. the seller shall load the goods on the ship designated by the buyer within the port of shipment stipulated in the contract and the stipulated time limit, and notify the buyer in a timely manner. When the goods are loaded on the designated ship at the port of shipment, the risk will be transferred from the seller to the buyer. When using fob terms, the seller completes delivery when loading the goods into the ship at the loading port, while the buyer is responsible for chartering and booking the cargo ship. therefore, the seller and the buyer must pay attention to the problem of cargo connection. In order to prevent the buyer's ship from arriving and the seller has not prepared the goods or the seller has prepared the goods but does not see the buyer's cargo ship, the buyer and the seller must give sufficient notice to each other. If the seller informs the buyer of the progress of the goods preparation in time, so that the buyer can charter the ship and book the space in time. The buyer shall also inform the seller of the name of the vessel, voyage and estimated time of arrival at the port of shipment in a timely manner after booking the shipping space.

Word / phrase		Explain
a/s	after sight	after sight
b/l	bill of lading	bill of lading