RSC Unit 1.4 Incoterm

Front

A Singapore importer purchases seafood from a supplier in Indonesia. The seller arranges and pays for shipping to Singapore port, but the buyer arranges insurance.

Back

CFR – Cost and Freight (Named Port of Destination)

Seller pays freight, but risk transfers once goods are loaded on vessel.

Front

A Malaysian electronics company buys parts from Thailand. The Thai seller loads the goods onto the vessel at Laem Chabang port. Buyer handles sea freight and insurance.

Back

FOB – Free on Board (Named Port of Shipment)

Seller delivers goods on board vessel; risk transfers once loaded.

Front

A Singapore wholesaler buys packaged tea from a supplier in Vietnam. The supplier delivers the goods to the freight forwarder chosen by the buyer at Ho Chi Minh City airport. Buyer handles freight and insurance.

Back

FCA – Free Carrier (Named Place)

Seller delivers goods to the carrier nominated by buyer; risk transfers at that point.

Front

A Singapore garment company buys fabric from India. The Indian seller arranges and pays transport by air to Changi Airport, but risk transfers when handed to the airline.

Back

CPT – Carriage Paid To (Named Place of Destination)

Seller pays transport, but risk passes once goods are handed to carrier.

Front

A Thai supplier sells auto parts to a Singapore car workshop. The seller arranges shipping to the buyer’s warehouse in Singapore but does not handle import clearance.

Back

DAP – Delivered at Place (Named Destination)

Seller delivers to buyer’s site, ready for unloading, but buyer clears customs.

Front

A Philippines machinery manufacturer sells a heavy machine to Malaysia. The seller delivers and unloads it at the buyer’s factory in Penang, with all transport arranged.

Back

DPU – Delivered at Place Unloaded (Named Destination)

Seller responsible for delivery + unloading at destination; buyer handles import clearance.

Front

A Singapore trading company buys timber from Indonesia. The seller delivers the logs alongside the vessel at Jakarta port. Buyer arranges loading, sea freight, and insurance

Back

FAS – Free Alongside Ship (Named Port of Shipment)

Seller’s responsibility ends once goods are placed next to the ship.

Front

A Singapore buyer orders spare parts from a small factory in Johor Bahru. The seller makes the goods available at their factory gate. The buyer arranges all transport, insurance, and export customs clearance.

Back

EXW – Ex Works (Place of Delivery)

Seller’s only duty is to make goods available at their premises. Buyer handles everything after pickup.

Front

A Brazil exporter sells coffee beans to Japan. The seller pays freight and insurance to Tokyo port.

Back

CIF – Cost, Insurance and Freight (Named Port of Destination)

Seller pays freight + insurance, but risk transfers when goods are loaded at origin port.

Front

A Singapore retailer buys textiles from Thailand. The seller delivers to Changi and handles import taxes and customs clearance.

Back

DDP – Delivered Duty Paid (Named Place of Destination)

Seller bears all costs, risks, and duties until goods reach buyer.