EXW EX WORKS (….named place)
" Ex works" means that the seller delivers when he places the goods at the disposal of the buyer at the seller’s premises or another named place (i.e. works, factory, warehouse, etc.) not cleared for export and not loaded on any collecting vehicle.
This term thus represents the minimum obligation for the seller, and the buyer has to bear all the costs and risks involved in taking the goods from the seller’s premises.
However, if the parties wish the seller to be responsible for the loading of the goods on departure and to bear the risks and all the costs of such loading, this should be made clear by adding explicit wording to this effect in the contract of sale. This term should not be used when the buyer cannot carry out the export formalities directly or indirectly. In such circumstances, the FCA term should be used, provided the seller agrees that he will load at his cost and risk.
A THE SELLER’S OBLIGATIONS
A1 Provision of goods in conformity with the contract.
The seller must provide the goods and the commercial invoice, or its equivalent electronic message, in conformity with the contract of sale and any other evidence of conformity, which may be required by the contract.
A2 Licenses, authorizations and formalities
The seller must render the buyer, at the latter’s request, risk and expense, every assistance in obtaining, where applicable, any export license or other official authorization necessary for the export of goods.
A3 contracts of carriage and insurance
a. Contract of carriage
No obligation
b. Contract of insurance
No obligation
A4 Delivery
The seller must place the goods at the disposal of the buyer at the named place of delivery, not loaded on any collecting vehicle, on the date or within the period agreed or, if no such time is agreed within the same named place, and if there are several points available, the seller may select the point at the place of delivery which best suits his purpose.
A5 Transfer the risks
The seller must, subject to the provision of B5, bear all risks of the loss or damage to the goods until such time as they have been delivered in accordance with A4.
A6 Division of costs
The seller must, subject to the provision of B6, pay all costs relating to the goods such time as they have been delivered in accordance with A4.
A7 Notice to the buyer
The seller must give the buyer sufficient notice as to when and where the goods will be placed at this disposal.
A8 Proof of delivery, transport document or equivalent electronic message
No obligation
A9 Checking - packaging - marking
The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) which are necessary for the purpose of placing the goods at the buyer’s disposal.
The seller must provide at his own expense packaging (unless it is usual for the particular trade to trade to make the goods of the contract description available unpacked) which is required for the transport of the goods, to the extent that the circumstances relating to the transport (for example modalities, destination) are made known to the seller before the contract of sale is concluded. Packaging is to be marked appropriately.
A10 Other obligations
The seller must render the buyer at the latter’s request, risk and expense, every assistance in obtain any documents or equivalent electronic messages issued or transmitted in the country of delivery and/or of origin which the buyer may require for the export and/or import of goods and, necessary, for their transit through any country.
B THE BUYER’S OBLIGATION
B1 Payment of the price
The buyer must pay the price as provided in the contract of sale.
B2 Licenses, authorization and formalities
The buyer must obtain at his own risk and expense any export and import license or other official authorization and carry out, where applicable, all customs formalities for the export of the goods.
B3 contracts of carriage and insurance
a. Contracts of carriage
No obligation
b. Contracts of insurance
No obligation
B4 Taking delivery
The buyer must take delivery of the goods when they have been delivered in accordance with A4 and A7/B7.
B5 Transfer of risks
The buyer must bear all the risks of loss or of damage to the goods
- from the time they have been delivered in accordance with A4: and
- From the agreed date or the expiry date of any period fixed for taking delivery which arise because he fails to give notice in accordance with B7, provided, however, that the goods have been duly appropriated to the contract, that is to say cleanly set aside or otherwise identified as the contract goods.
B6 Division of costs
The buyer must pay.
- All costs relating to the goods from the time they have been delivered in accordance with A4: and
- Any additional costs incurred by failing either to take delivery of the goods when they have been placed at his disposal, or to, give appropriate notice in accordance with B7 provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as he contract goods: and
- Where applicable: all duties, taxes and other charges as well as the costs of carrying out customs formalities payable upon export.
The buyer must reimburse all the costs and charges incurred by the seller in rendering assistance in accordance with A2.
B7 Notice to the seller
The buyer must, whenever he is entitled to determine the time within an agreed period and/or the place of taking delivery, give the seller sufficient notice there of.
B8 Proof of delivery, transport document or equivalent electronic message
The buyer must provide the seller with appropriate evidence of having taken delivery.
B9 Inspection of goods
The buyer must pay the costs of any pre-shipment inspection, including inspection mandated by the authorities of the country of export.
B10 Other obligations
The buyer must pay all costs and charges incurred in obtaining the documents or equivalent electronic messages mentioned in A10 and reimburse those incurred by the seller in rendering his assistance in accordance therewith.
FCA FREE CARRIER (…named place)
"Free Carrier" means that the seller delivers in goods cleared for export, to the carrier nominated by the buyer at the named place. It should be noted that it chosen place of delivery has an impact on the obligations of loading and unloading the goods at that place. If delivery occurs at any other place, the seller is not responsible for unloading.
This term may be used irrespective of the mode of transport, including multimodal transport.
"Carrier" means any person who, in a contract of carriage, undertakes to perform or to procure the performance of transport by rail, road, air, sea, inland waterway or by a combination of such modes.
If the buyer nominates a person other than a carrier to receive the goods, the seller is deemed to have fulfilled his obligation deliver the goods when they are delivered to that person.
A THE SELLER’S OBLIGATIONS
A1 Provision of goods in conformity with the contract
The seller must provide the goods and the commercial invoice, or its equivalent electronic message, in conformity with the contract of sale and any other evidence of conformity which may be required by the contract.
A2 Licences, authorizations and formalities
The seller must obtain at his own risk and expense any export licence or other official authorization and carry out, where applicable', all customs formalities necessary for the export of the goods.
A3 Contracts of carriage and insurance
a) Contract of carriage
No obligation'. However, if requested by the buyer or if it is commercial practice and the buyer does not give an instruction to the contrary in due time, the seller may contract for carriage on usual terms at the buyer's risk and expense. In either case, the seller may decline to make the contract and, if he does, shall promptly notify the buyer accordingly.
b) Contract of insurance
No obligation.
A4 Delivery
The seller must deliver the goods to the carrier or another person nominated by the buyer, or chosen by the seller in accordance with A3 a), at the named place on the date or within the period agreed for delivery.
Delivery is completed;
a) If the named place is the seller's premises, when the goods have been loaded on the means of transport provided by the carrier nominated by the buyer or another person acting on his behalf.
b) If the named place is anywhere other than a), when the goods are placed at the disposal of the carrier or another person nominated by the buyer, or chosen by the seller in accordance with A3 a) on the seller's means of transport not unloaded.
If no specific point has been agreed within the named place, and if there are several points available, the seller may select the point at the place of delivery which best suits his purpose.
Failing precise instructions from the buyer, the seller may deliver the goods for carriage in such a manner as the transport mode and/or the quantity and/or nature of the goods may require.
A5 Transfer of risks
The seller must, subject to the provision B5, bear all risks of loss of or damage to the goods until such time as they have been delivered in accordance with A4.
A6 Division of costs
The seller must, subject to the provision of B6, pay
- all costs relating to the goods until such time as they have been delivered in accordance with A4: and
- Where applicable the costs of customs formalities as well as all duties, taxes, and other charges payable upon export.
A7 Notice to the buyer
The seller must give the buyer sufficient notice that the goods have been delivered in accordance with A4. Should the carrier fail to take delivery in accordance with A4 at the time agreed, the seller must notify the buyer accordingly.
A8 Proof of delivery, transport document or equivalent electronic message
The seller must provide the buyer at the seller’s expense with the usual proof of delivery of the goods in accordance with A4.
Unless the document referred to in the preceding paragraph is the transport document, the seller must render the buyer at the latter’s request, risk and expense, every assistance in obtaining a transport document for the contract of carriage (for example a negotiable bill of lading, a non-negotiable sea waybill, a railway consignment note, waterway document, an air waybill, a railway consignment note, a road consignment note, or a multimodal transport document).
When the seller and the buyer have agreed to communicate electronically, the document referred to in the preceding paragraph may be replaced by an equivalent electronic data interchange (EDI) message.
A9 Checking - packaging - marking.
The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) which are necessary for the purpose of delivering the goods in accordance with A4.
The seller must provide at his own expense packaging (unless it is usual for the particular trade to send the goods of the contract description unpacked) which is required for the transport of the goods, to the extent that the circumstances relating to the transport (for example modalities, destination) are made known to the seller before the contract of sale is concluded. Packaging is to be marked appropriately.
A10 Other obligations
The seller must render the buyer at the latter’s request, risk and expense, every assistance in obtaining any documents or equivalent electronic messages (other than those mentioned in A8) issued or transmitted in the country of delivery and/or of origin which the buyer may require for the import of the goods and, where necessary, for their transit through any country.
The seller must provide the buyer, upon request, with the necessary information for procuring insurance.
B THE BUYER’S OBLIGATION
B1 Payment of the price
The buyer must pay the price as provided in the contract of sale.
B2 Licences, authorizations and formalities
The buyer must obtain at his own risk and expense any import licence or other official authorization and carry out, where applicable', all customs formalities for the import of the goods and for their transit through any country.
B3 Contracts of carriage and insurance
a) Contract of carriage
The buyer must contract at his own expense for the carriage of the goods from the named place, except when the contract of carriage is made by the seller as provided for in A3 a).
b) Contract of insurance
No obligation.
B4 Taking delivery
The buyer must take delivery of the goods when they have been delivered in accordance with A4.
B5 Transfer of risks
The buyer must bear all risks of loss of or damage to the goods
- from the time they have been delivered in accordance with A4: and
- From the agreed date or the expiry date of any agreed period for delivery which arise either because he fails nominate the carrier or another person in accordance with A4, or because the carrier or the party nominated by the buyer fails to take the goods into his charge at the agreed time, or because the buyer fails to give appropriate notice in accordance with B7, provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods.
B6 Division of costs
The buyer must pay
- all costs relating to the goods from the time they have been delivered in accordance with A4: and
- any additional costs incurred, either because he fails to nominate the carrier or another person in accordance with A4 or because the party nominated by the buyer fails to take the goods into his charge at the agreed time, or because he has failed to give appropriate notice in accordance with B7, provided however, that the goods have been duly appropriated to the contract , that is to say, clearly set aside or otherwise identified as the contract goods: and
- Where applicable: all duties, taxes and other charges as well as the costs of carrying out customs formalities payable upon import of the goods and for their transit through any country.
B7 Notice to the seller
The buyer must give the seller sufficient notice of the name of the party designated in A4 and, where necessary, specify the mode of transport, as well as the date or period for delivery the goods to him and, as the case may be, the point within the place where the goods should be delivered.
B8 Proof of delivery, transport document or equivalent electronic message.
The buyer must accept the proof of delivery in accordance with A8.
B9 Inspection of goods
The buyer must pay the costs of any pre-shipment inspection except when such inspection is mandated by the authorities of the country of export.
B10 Other obligations
The buyer must pay all the costs and charges incurred in obtaining the documents or equivalent electronic messages mentioned in A10 and reimburse those incurred by the seller in rendering his assistance in accordance therewith and in contracting for carriage in accordance with A3a).
The buyer must give the seller appropriate instructions whenever the seller’s assistance in contracting for carriage is required in accordance with A3a).
FAS Free alongside ship (….named port of shipment)
"Free alongside shipment" means that the seller delivers when the goods are placed alongside the vessel at the named port of shipment. This means that the buyer has to bear all the costs and risks of loss of or damage to the goods from that moment.
The FAS term requires the seller to clear the goods for export.
THIS IS A REVERSAL FROM PREVIOUS INCOTERMS VERSIONS, WHICH REQUIRE THE BUYER TO ARRANGE FOR EXPORT CLEARANCE.
However, if the parties wish the buyer to clear the goods for export, this should be made clear by adding explicit wording to this effect in the contract of sale.
This term can be used only for sea or inland waterway transport.
A THE SELLERS OBLIGATIONS
A1 Provision of goods in conformity with the contract
The seller must provide the goods and the commercial invoice, or its equivalent electronic message, in conformity with the contract of sale and any evidence of conformity, which may be required by the contract.
A2 Licenses, authorization and formalities
The seller must obtain at his own risk and expense any export license or other official authorization and carry out, where applicable, all customs formalities necessary for the export of the goods.
A3 Contract of carriage and insurance
a. Contract of carriage
No obligation
b. Contract of insurance
No obligation
A4 Delivery
The seller must place the goods alongside the vessel nominated by the buyer at the loading place named by the buyer at the named port of shipment on the date or within the agreed period and in the manner customary at the port.
A5 Transfer of Risks
The seller must, subject to the provisions of B5, bear all risks of loss or damage to the goods until such time as they have been delivered in accordance with A4.
A6 Division of costs
The seller must, subject to the provisions of B6, pay
- all costs relating to the goods until such time as they have been delivered in accordance with A4, and
- where applicable, the costs of customs formalities as well as all duties, taxes, and other charges payable upon export.
A7 Notice to buyer
The seller must give the buyer sufficient notice that the goods have been delivered alongside the nominated vessel.
A8 Proof of delivery, transport document or equivalent electronic message.
The seller must provide the buyer at the seller’s expense with the usual proof of delivery of the goods in accordance with A4.
Unless the document referred to in the preceding paragraph is the transport document, the seller must render the buyer at the latter’s request, risk and expense, every assistant in obtaining a transport document (for example a negotiable bill of lading, a non-negotiable sea waybill, an inland waterway document).
When the seller and the buyer have agreed to communicate electronically, the document referred to in the preceding paragraphs may be replaced by an equivalent electronic data interchange (EDI) message.
A9 Checking - packaging - marking
The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) which are necessary for the purpose of delivering the goods in accordance with A4.
The seller must provide at his own expense packaging (unless it is usual for the particular trade to ship the goods of contract description unpacked) which is required for the transport of the goods, to the extent that the circumstances relating to the transport (for example modalities, destination) are made known to the seller before the contract of sale is concluded. Packaging is to be marked appropriately.
A10 Other obligations
The seller must render the buyer at the latter’s request, risk and expense, every assistance in obtaining any documents or equivalent electronic messages (other than those mentioned in A8) issued or transmitted in the country of shipment and/or of origin which the buyer may require for the import of the goods and, where necessary, for their transit through any country.
The seller must provide the buyer, upon request, with the necessary information for procuring insurance.
B THE BUYER’S OBLIGATION
B1 Payment of the price
The buyer must pay the price as provided in the contract of sale.
B2 Licenses, authorization and fromalities
The buyer must obtain at this own risk and expense any import license or other official authorization and carry our, where applicable, all customs formalities for the import of the goods and for their transit through any country.
B3 contracts of carriage and insurance
a. Contract of carriage
The buyer must contract at his own expense for the carriage of the goods from the named port of shipment.
b. Contract of insurance
No obligation.
B4 Taking delivery
The buyer must take delivery of the goods when they have been delivered in accordance with A4.
B5 Transfer of risks
The buyer must bear all risks of loss of or damage to the goods
- from the time they have been delivered in accordance with A4: and
- From the agreed date or the expiry date of the agreed period for delivery with arise because he fails to give notice in accordance with B7, or because the vessel nominated by him fails to arrive on time, or is unable to take the goods, or closes for cargo earlier than the time notified in accordance with B7, provided, however, that the goods have been duly appropriate to the contract, that is to say, clearly set aside or otherwise identified as the contract goods.
B6 Division of costs
The buyer must pay
- all costs relating to the goods from the time they have been delivered in accordance with A4: and
- Any additional costs incurred , either because the vessel nominated by him has failed to arrive on time, or is unable to take the goods, or closes for cargo earlier than time notified in accordance with B7, or because the buyer has failed to give appropriate notice in accordance with B7 provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods: and
- Where applicable, all duties, taxes and other charges as well as the costs of carrying out customs formalities payable upon import of the goods and for their transit through any country.
B7 Notice to the seller
The buyer must give the seller sufficient notice of the vessel name, loading point and required delivery time.
B8 Proof of delivery, transport document or equivalent electronic message.
The buyer must accept the proof of delivery in accordance with A8.
B9 Inspection of goods
The buyer must pay the costs of any pre-shipment inspection, except when such inspection is mandated by the authorities of the country of export.
B10 Other obligations
The buyer must pay all costs and charges incurred in obtaining the documents or equivalent electronic messages mentioned in A10 and reimburse those incurred by the seller in rendering his assistance in accordance therewith.
FOB FREE ON BOARD (…. named port of shipment)
"Free on Board" means that the seller delivers when the goods pass the ship’s rail at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export. This term can be used only for sea or inland waterway transport. If the parties do not intend to deliver the goods across the ship’s rail, the FCA term should be used.
A THE SELLER’S OBLIGATIONS
A1 Provision of goods in conformity with the contract
The seller must provide the goods and the commercial invoice, or its equivalent electronic message, in conformity, which may be required by the contract.
A2 Licenses, authorizations and formalities
The seller must obtain at this own risk and expense any export license or other official authorization and carry out, where applicable, all customs formalities necessary for the export of the goods.
A3 contracts of carriage and insurance
a. Contract of carriage
No obligation
b. Contract of insurance
No obligation
A4 Delivery
The seller must deliver the goods on the date or within the agreed period at the named port of shipment and in the manner customary at the port on board the vessel nominated by the buyer.
A5 Transfer of risks
The seller must, subject to the provision of B5, bear all risks of loss of our damage to the goods until such time, as they have passed the ship’s rail at the named port of shipment.
A6 Division of costs
The seller must subject tot he provisions of B6, pay
- all the costs relating to the goods until such time as they have passed the ship’s rail at the named port of shipment: and
- Where applicable: the costs of customs formalities necessary for export as well as all duties, taxes and other charges payable upon export.
A7 Notice to the buyer
The seller must give the buyer sufficient notice that the goods have been delivered in accordance with A4.
A8 Proof of delivery, transport document or equivalent electronic message
The seller must provide the buyer at the seller expense with the usual proof of delivery in accordance with A4.
Unless the document referred to in the preceding paragraph is the transport document, the seller must render the buyer, at the latter’s request, risk and expense, every assistance in obtaining a transport document for the contract of carriage (for example, a negotiable bill of lading, a non-negotiable sea waybill, an inland waterway document, or a multimodal transport document)
Where the seller and the buyer have agreed to communicate electronically, the document referred to in the preceding paragraph may be replaced by an equivalent electronic data interchange (EDI) message.
A9 Checking - packaging - marking
The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) which are necessary for the purpose of delivering the goods in accordance with A4.
The seller must provide at this own expense packaging (unless it is usual for the particular trade to ship he goods of the contract description unpacked) which is required for the transport of the goods, to the extent that the circumstances relating to the transport (for example modalities, destination) are made known to the seller before the contract of sale is concluded. Packaging is to be marked appropriately.
A10 Other obligations
The seller must render the buyer at the latter’s request, risk and expense, every assistance in obtaining any documents equivalent electronic message (other than those mentioned in A8) issued or transmitted in the country of shipment and/or of origin which the buyer may require for the import of the goods and, necessary, or their transit through and country.
The seller must provide the buyer, upon request, with the necessary information for procuring insurance.
B THE BUYER’S OBLIGATIONS
B1 Payment of the price
The buyer must pay the price as provided in the contract of sale.
B2 Licences, authorization, and formalities.
The buyer must obtain at his own risks and expense any import license or other official authorization and carry out, where applicable, all customs formalities for the import of the goods and, where necessary, for their transit through any country.
B3 contracts of carriage and insurance
a. Contract of carriage
The buyer must contract at his own expense for the carriage of the goods from the named port of shipment.
b. Contract of insurance
No obligation
B4 Taking delivery
The buyer must take delivery of the goods when they have been delivered in accordance with A4.
B5 Transfer of risks
The buyer must bear all risks of loss of or damage to the goods
- from the time they have passed the ship’s rail at the named port of shipment: and
- From the agreed date or the expiry date of the agreed period for the delivery which arise because he fails to give notice in accordance with B7, or because the vessel nominated by him fails to arrive on time, or is unable to take the goods, or closes for cargo earlier than the time notified in accordance with B7, provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods.
B6 Division of costs
The buyer must pay
- all costs relating to the goods from the time they have passed the ship’s rail at the named port of shipment: and
- any additional costs incurred, either because the vessel nominated by him fails to arrive on time, or is unable to take the goods, or closes for the cargo earlier than the time notified in accordance with B7, or because the buyer has failed to give appropriate notice in accordance with B7, provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods: and
- Where applicable: all duties, taxes and other charges as well as the costs of carrying out customs formalities payable upon import of the goods and for their transit through any country.
B7 Notice to the seller
The buyer must give the seller sufficient notice o the vessel name, loading point and required delivery time.
B8 Proof of delivery, transport document or equivalent electronic message
The buyer must accept the proof of delivery in accordance with A8.
B9 Inspection of goods
The buyer must pay the costs of any pre-shipment inspection except when such inspection is mandated by the authorities of the country of export.
B10 Other obligations
The buyer must pay all costs and charges incurred in obtaining the documents or equivalent electronic message mentioned in A10 and reimburses those incurred by the seller in rendering his assistance in accordance therewith.
