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Articles -
Business and Finance Articles
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Written by Webmaster
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Thursday, 23 October 2008 |
By Ben Needles
 Here are the most important Incoterms for conducting international business.
EXW - Ex Works (named point of origin)
The goods are made available to the buyer at the sellers door (i.e. the sellers warehouse). At this point title and risk pass to the buyer. The buyer is responsible for transportation, insurance and other costs from the sellers door to the goods final point of destination. This term applies to all modes of transportation. The primary responsibility of the seller here is to make sure the goods are appropriately packaged for transport.
Why use EXW? For the seller this term limits their risk to almost nothing. The buyer may want to use it if they are able to arrange the logistics involved in the shipping of the goods at a cheaper price than what the seller could provide.
FCA - Free Carrier (named place)
The seller is obligated to get the goods cleared for export and deliver and load the goods onto the buyers collecting vehicle. At this point title and risk pass to the buyer including transportation and insurance cost. |
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Last Updated ( Thursday, 23 October 2008 )
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