EXW
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.
FCA
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.
CPT
Carriage Paid To (named place of destination) The seller pays for carriage. Risk transfers to buyer upon handing goods over to the first carrier.
CIP
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.
DAT
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.
DAP
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.
DDU
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.
DDP
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 buyer.
FAS
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.
FOB
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.
CFR
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 (C&F).
CIF
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.
Bankrupt stock
Generally bailiff auctions with new, used, damaged, ex-catalogued goods.
Distressed stock
Bargain prices and various items. The distressed inventory can consist of all possible grades: new, used and damaged.
Liquidated stock
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.
Refurbished
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.
Returns
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.
Stocklots, overstocks
Brand new products sold under manufacturer's warranty.
Outlet
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.
A-Ware
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.
B-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.
C-Ware
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.
Retour-Ware
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