Glossary

Open Costing

Breakdown of the costing of a product into the individual components (fabric, trims, packaging), labour, overheads and profit.

BOM - Bill of Material

A subset of the Open Costing which gives the breakdown of the individual components that go into a product.

Incoterms - International Commercial Terms

These terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) relating to international commercial law.

The following terms are defined:

• Delivery: The point in the transaction where the risk of loss or damage to the goods is transferred from the seller to the buyer
• Arrival: The point named in the Incoterm to which carriage has been paid
• Free: Seller has an obligation to deliver the goods to a named place for transfer to a carrier
• Carrier: 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
• Freight forwarder: A firm that makes or assists in the making of shipping arrangements;
• Terminal: Any place, whether covered or not, such as a dock, warehouse, container yard or road, rail or air cargo terminal
• To clear for export: To file Shipper’s Export Declaration and get export permit

FOB - Free on Board

This means that the price includes everything up until your shipping point.

DAP - Delivery at Place

This means that the price includes everything up until your shipping point.