Ex Works (named place of delivery) The seller makes the goods
available at its premises. This term places the maximum obligation on
the buyer and minimum obligations on the seller. The Ex Works term is
often used when making an initial quotation for the sale of goods
without any costs included. EXW means that a seller has the goods
ready for collection at his premises (works, factory, warehouse,
plant) on the date agreed upon. The buyer pays all transportation
costs and also bears the risks for bringing the goods to their final
destination. The seller doesn't load the goods on collecting vehicles
and doesn't clear them for export. If the seller does load the good,
he does so at buyer's risk and cost. If parties wish seller to be
responsible for the loading of the goods on departure and to bear the
risk and all costs of such loading, this must be made clear by adding
explicit wording to this effect in the contract of sale.
Free Carrier (named place of delivery) The seller hands over the
goods, cleared for export, into the disposal of the first carrier
(named by the buyer) at the named place. The seller pays for carriage
to the named point of delivery, and risk passes when the goods are
handed over to the first carrier.
Carriage Paid To (named place of destination) The seller pays for
carriage. Risk transfers to buyer upon handing goods over to the first
Carriage and Insurance Paid to (named place of destination) The
containerized transport/multimodal equivalent of CIF. Seller pays for
carriage and insurance to the named destination point, but risk passes
when the goods are handed over to the first carrier.
Delivered at Terminal (named terminal at port or place of
destination)Seller pays for carriage to the terminal, except for costs
related to import clearance, and assumes all risks up to the point
that the goods are unloaded at the terminal.
Delivered at Place (named place of destination) Seller pays for
carriage to the named place, except for costs related to import
clearance, and assumes all risks prior to the point that the goods are
ready for unloading by the buyer.
Delivered Duty Unpaid (named place of destination) Replaced by DAP.
Seller is responsible for making the goods available to the buyer at a
named place of destination but not cleared for import. The seller is
also responsible for all the costs involved to deliver the goods to
the named place of destination. The seller's risk also does not end
until it reaches the names place of destination.
Delivered Duty Paid (named place of destination) Seller is
responsible for delivering the goods to the named place in the country
of the buyer, and pays all costs in bringing the goods to the
destination including import duties and taxes. This term places the
maximum obligations on the seller and minimum obligations on the
Free Alongside Ship (named port of shipment) The seller must place
the goods alongside the ship at the named port. The seller must clear
the goods for export. Suitable only for maritime transport.
Free on Board (named port of shipment) The seller must load the
goods on board the vessel nominated by the buyer. Cost and risk are
divided when the goods are actually on board of the vessel (this rule
is new!). The seller must clear the goods for export. The term is
applicable for maritime and inland waterway transport only. The buyer
must instruct the seller the details of the vessel and the port where
the goods are to be loaded, and there is no reference to, or provision
for, the use of a carrier or forwarder. This term has been greatly
misused over the last three decades ever since Incoterms 1980
explained that FCA should be used for container shipments.
Cost and Freight (named port of destination) Seller must pay the
costs and freight to bring the goods to the port of destination.
However, risk is transferred to the buyer once the goods are loaded on
the vessel (this rule is new!). Maritime transport only and Insurance
for the goods is NOT included. This term is formerly known as CNF
Cost, Insurance and Freight (named port of destination) Exactly the
same as CFR except that the seller must in addition procure and pay
for the insurance. Maritime transport only.
Ends of lines (EOL)
Products sold without manufacturer's warranty, however the seller
usually gives the warranty.
Generally bailiff auctions with new, used, damaged, ex-catalogued
Bargain prices and various items. The distressed inventory can
consist of all possible grades: new, used and damaged.
Usually brand new labelled products from latest seasons. Sometimes
there will be also some ex-catalogued items however. It is also
possible that the stock have just been distressed.
Usually electronics; the items which have been repaired, mostly by
the manufacturer. Sometimes they may have some cosmetic imperfections,
but they are always 100% working and sold under warranty.
Items returned by customers. Mixed grades: new items are rare, most
of them were used or have with slight defects, damaged goods are also
included in this group. Usually not tested, sold without warranty but
the estimated price is much lower than RRP.
Brand new products sold under manufacturer's warranty.
clothing clearance lines, usually directly from retail market. In
some cases, this clothes have never been moved from warehouse and are
sold as warehouse excess inventory. Outlet clothing is neither the
latest season. Do not expect the full range of sizes per model.
brand new products sold in original boxes. End of line stocks,
closed-down stores' merchandise, bankrupt stocks, bailiffs' seizured
goods and many more. In most cases, these products are sold under
manufacturer's or supplier's warranty, however warranties' lenght and
conditions are not the same for all products graded as A-Ware.
goods are new, ex demo, ex lease, used or refurbished. The items
are always 100% working, sold in original or plain boxes. Some of the
products are sold under 12 month warranty, however in most cases the
warranty is valid for 4 weeks.
damaged goods, but usually there are small electric defects easy to
repair. These goods are often new and were returned by clients, or
were not sent to them. For instance, among them one will find
incorrectly mail-ordered products, also damaged while transporting or
broken. Their price is a percentage of their market value. These
products are not sold under warranty.
Mix of products from B-ware and C-ware groups, rarely including
A-ware group. Usually, 60% of them works and 95% have the original
boxes unless the characteristic of a certain product states
differently. Retour-Ware products are not tested for working and are
not sold under warranty, but their prices are very advantageous