GROUP E - Departure

Ex-Works (EXW) e.g. from the factory or warehouse

Seller packs and prepares goods for dispatch with delivery taking place at his/her factory or warehouse. The buyer now takes all transit risks.

GROUP F - Main carriage unpaid

FCA (Free Carrier) named place e.g. where the carrier - the plane or ship etc., pick up the goods

Delivery occurs when the seller gives the goods to the carrier (airline, shipping company, or freight forwarder) who is named by the buyer. The seller will pay all the costs up to this point, including export formalities and licences. From this point the buyer takes the risks for the goods and transit. This term is used for any type or combination of types of transport.

FAS (Free Alongside Ship) with port of shipment named e.g. where the goods are leaving from

Delivery occurs alongside the ship named by the buyer at the named port of shipment. The buyer has the expense of loading. The seller pays costs up to and including delivery alongside the ship, including all documentation. The goods and transit risks are the buyer's when the goods are delivered within the period stated in the contract of sale. This term is only used for sea and inland waterways e.g. canals.

FOB (Free on Board) named port of shipment e.g. where the goods are leaving from.

Delivery takes place when goods are on board the named ship at the buyer's named port. The seller pays all costs of loading. The buyer's risks for the goods and transit begin once the goods have been put over the ship's rail.

The term is only used for sea and inland waterways.

What are the two ways of quoting terms?

It is possible to quote terms in two ways: by stating your price and discounts without leaving room for negotiation, or suggesting that the customer could write again and discuss them.

 

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