EXW - EX-WORKS

Ex-Works means that the Seller delivers the goods to the Buyer when it places the goods at the disposal of the Buyer at a “named” place (such as a factory or warehouse). The named place may, or may not be, the Seller’s premises.

For delivery to occur, the Seller does not need to load the goods onto any collection vehicle, nor does the Seller need to clear the goods for export, where such clearance is applicable.

FCA - FREE CARRIER

Free Carrier means that the Seller delivers the goods to the Buyer in one or other of two ways.

1)hen the named place is the Seller’s premises, the goods are delivered, when they are loaded on the means of transport arranged by the Buyer.

OR

2) When the named place is another place, the goods are delivered when having been loaded on the Seller’s means of transport, they reach the named other place and are ready for unloading from that Seller’s means of transport and place this at the disposal of the carrier or another person nominated by the Buyer. 

Whichever of the two is chosen as the place of delivery, that place identifies where responsibility (or “risk”) transfers to the Buyer and the time from which costs are for the Buyer’s account.

CPT - CARRIAGE PAID TO

Carriage Paid To means that the Seller delivers the goods and transfers the “risk” to the buyer by handing them over to the carrier, contracted by the Seller or by procuring the goods so delivered. The Seller may do so by giving the carrier physical possession of the goods in the manner and at the place appropriate to the means of transport used. 

Once the goods have been delivered to the Buyer in this way, the Seller’s responsibility stops and not longer  guarantees that the goods will reach the place of destination in “sound condition”, in the stated quantity or indeed at all. Risk transfers from Seller to Buyer when the goods are delivered to the Buyer by handing them over to the carrier; the Seller must nonetheless contract the carriage of the goods from delivery to the agreed destination.

CIP - CARRIAGE AND INSURANCE PAID TO

Carriage and Insurance Paid To means that the Seller delivers the goods and transfers the risk to the buyer by handing them over to the carrier, contracted by the Seller or by procuring the goods so delivered. The Seller may do so by giving the carrier physical possession of the goods in the manner and at the place appropriate to the means of transport used.

Once the goods have been delivered to the Buyer in this way, the Seller’s responsibility stops and not longer guarantees that the goods will reach the place of destination in “sound condition”, in the stated quantity or indeed at all. Risk transfers from Seller to Buyer when the goods are delivered to the Buyer by handing them over to the carrier; the Seller must nonetheless contract for the carriage of the goods from delivery to the agreed destination. 

DAP - DELIVERED AT PLACE

Delivered at Place means that the Seller delivers the goods and transfers risk to the Buyer when the goods are placed at the disposal of the Buyer on the arriving means of transport ready for unloading at the named place of destination or at the agreed point within that place, if any such point is agreed.

The Seller bears all risks involved in bringing the goods to the named place of destination or to the agreed point within that place. In this Incoterm rule, delivery and arrival condition at destination are the same. 

DPU - DELIVERED AT PLACE UNLOADED

Delivered at Place Unloaded means that the Seller delivers the goods and transfers risk to the Buyer when the goods, once uploaded from the arriving means of transport, are placed at the disposal of the Buyer at a named place of destination or at the agreed point within that place if any such point is agreed. 

The Seller bears all risks involved in bringing the goods to and unloading them at the named place of destination. In this Incoterms rule, therefore, the delivery and arrival at destinations are the same. DPU is the only Incoterms rule that requires the Seller to unload goods at the destination. The Seller therefore ensures that it is in a position to organise unloading at the named place. Should the parties agree that the Seller does not to bear the risk and cost of unloading, the DPU rule should be avoided and DAP should be used instead.

DDP - DELIVERED DUTY PAID

Delivered Duty Paid means that the Seller delivers the goods to the Buyer when the goods are placed at the disposal of the Buyer, cleared for import, on the arriving means of transport, ready for unloading, at the named place of destination or at the agreed point within that place, if any such point is agreed.

The Seller bears all risks involved in bringing the goods to the named place of destination or to the agreed point within that place. In this Incoterms rule, therefore, delivery and arrival at destination are the same. 

FAS - FREE ALONGSIDE SHIP

Free Alongside Ship means that the Seller delivers the goods to the Buyer when the goods are placed alongside the ship (e.g. on a quay or a barge) nominated by the Buyer at the named port of shipment or when the Seller procures goods already so delivered. 

The risk of loss of, or damage to, the goods, transfers to the Buyer when the goods are alongside the ship or quay, and the Buyer henceforth bears all costs from that moment onwards.

FOB - FREE ON BOARD

Free on Board means that the Seller delivers the goods to the Buyer on board the vessel nominated by the Buyer, at the named port of shipment or procured the goods already so delivered. 

The risk of loss of, or damage, to the goods, transfers to the Buyer when the goods are on board the vessel, and the Buyer henceforth bears all costs from that moment onwards.

CFR - COST AND FREIGHT

Cost and Freight means that the Seller delivers the goods to the Buyer on board the vessel or procures the goods already so delivered.

The risk of loss of, or damage to, the goods, transfers to the Buyer when the goods are on the board the vessel, such that the Seller is taken to have performed their obligation to deliver the goods, whether or not, the goods actually arrive at their destination in sound condition, in the stated quantity or, indeed, at all. In CFR, the Seller owes no obligation to the Buyer to purchase insurance coverage. The Buyer however would be well-advised therefore to purchase some cover for themselves.

CIF - COST INSURANCE AND FREIGHT

Cost Insurance and Freight means that the Seller delivers the goods to the Buyer on board the vessel or procures the goods already so delivered. 

The risk of loss of or damage to the goods transfers when the goods are on board the vessel, such that the seller is taken to have performed its obligation to deliver the goods whether or not the goods actually arrive at their destination in sound condition, in the stated quantity or, indeed, at all. Insurance and transport costs are included in the contract specifics with no charges borne to the Buyer over and above the agreed sales price.

BROKER

A person employed on the Commodity Exchange with a license to conduct brokerage activities issued by the Securities Commission

MARKET MATERIAL

Commodities and non-standardized forward contracts traded on the Commodity Exchange

COMMODITIES

Any product that can be physically delivered, including agricultural products, metals and their ores and alloys and energy sources in accordance with the Law and Rulebook.

CONTRACT VALUE
The total amount that the buyer must pay within one transaction.

FORWARD CONTRACT

A non-standardized contract for the sale of certain commodities at a predefined price and the delivery of commodities and final payment is made on a certain day in the future.

LISTING
List of commodities traded on the Commodity Exchange.

SPOT MARKET
Market segment of the Commodity Exchange where the commodities are delivered within seven working days after the conclusion of the transaction.

FORWARD MARKET
The segment of the Commodity Exchange market on which non-standardized futures contracts are traded and on which delivery and payment are made by the due date stipulated in the contracts.

BLOK TRGOVANJE
A block transaction whose subject is commodities that can be traded on the Commodity Exchange, and which was concluded during the Commodity Exchange meeting, in a bilateral relationship between one buyer and one seller, according to the condition prescribed by the Rulebook.

TRADING ORDER
An order issued in accordance with the Rulebook by the Authorized Representatives of the Members at the Commodity Exchange meetings for trading in certain commodities.

TRADE CONCLUSION
Contract on purchase and sale of commodities, concluded on the Commodity Exchange, in electronic form.

CALCULATION AND PAYMENT
Management and comparison of concluded transactions on the spot and forward market that takes place on the Commodity Exchange.

GUARANTEE MEANS
Funds that the Member pays to the guarantee account of the Commodity Exchange in order to ensure the execution of trading on the Commodity Exchange before the conclusion of the transaction.

MEDIATION
The procedure of mediation in resolving disputes in trading on the Commodity Exchange, conducted by the Commodity Exchange.

COMMODITY EXCHANGE ARBITRATION
Arbitration in case of a dispute regarding transactions on the Commodity Exchange, conducted by the Belgrade Arbitration Center (BAC).