Ex-works, ex-factory, ex-warehouse, ex-mill.

The seller has fulfilled its delivery obligation to put the goods in his factory, workshop, etc. at the disposal of the buyer. It is not responsible for nor of loading the goods on the vehicle provided by the buyer or for clearing the goods for export, unless otherwise agreed. The buyer supports all the expenses and risks of remove the merchandise from the domicile of the seller to its final destination.

Free on Board - Libre a bordo.

It is followed by the port of embarkation, ej. FOB Buenos Aires. It means that the goods are placed aboard the boat charges, rights and risks on account of the seller until the goods have passed the ship's rail, freight excluded. It requires the seller to clear the goods for export. This term may be used only for transport by sea or inland waterways.

Cost & Freight - Costo y Flete.

The abbreviation is followed by the name of the port of destination. The price includes the goods in port of destination, freight paid but surely not covered. The seller should dispatch the goods to customs and can only be used in the case of transport by sea or inland waterway.

Delivered ex Ship - Entregada sobre buque

The seller fulfills obligation when the goods are at the disposal of the buyer on board the ship at the port of destination, without clearing the customs for import.

Delivered ex Quay (Duty Paid) - Entregada en Muelle (derechos pagados)

The seller fulfills obligation when the goods are at the disposal of the buyer on the quay at the port of destination, dispatches for import.

The letter of credit is the payment method that offers a higher level of security in sales, ensuring the collection of operation exporter.

The documentary credit is an order which the importer gives your bank to proceed with the payment of the operation at the time that the Bank of the exporter submit supporting documentation that the merchandise has been sent in the manner agreed.

The documentation must be precise and include all documents specified in the letter of credit. There can be any type of error, either of substance or of form. Any failure in this regard may lead to issuing bank to not proceed with the payment, pending that errors are corrected. The procedure begins when the importer instructs their bank to open a letter of credit and communicates it to the exporter, indicating the documentation that must be submitted.

Then, the exporter proceeds to the shipment of the goods at the agreed place and, at the same time, through your bank, the bank of the importer forwards supporting documentation that the merchandise has been sent under the agreed conditions.

Bank of the importer receives this documentation, check that it's all in rule and the payment is made. Types of documentary credits:
1.- Revocable or irrevocable:

Revocable: It is he who after opening and before have proceeded to the payment, the importer can cancel it at any time to his free will, so the security offered is very low.

Irrevocable: he is the one who once opened already cannot be cancelled, what guarantees the exporter if the documentation submitted is correct, going to charge sale.

2.- Confirmed:

Is this case a third bank (normally an International Bank of first row) It guarantees the fulfillment of the payment in the case of the Bank of the importer not to do this.

3.- On demand or time to view: the payment of the operation is to spot, so at the time of filing the documentation the payment is made by the Bank of the importer. Term: the payment of the operation is postponed, so once delivered documentation there is to wait for the course of the time agreed to receive the amount of the sale.

Cost, Insurance & Freight - Costo, Seguro y Flete.

The abbreviation is followed by the name of the port of destination and the goods put in port of destination freight paid and secure covered is included in the price. Seller contracts for insurance and pays the appropriate premium. The seller is only required to obtain insurance with minimum coverage.