Final answer:
The correct category of Incoterms for a transaction where the buyer takes delivery at the seller's location is EXW (Ex Works), which places minimal responsibility on the seller while the buyer assumes most costs and risks. Option 1 is correct answer.
Step-by-step explanation:
The question concerns Incoterms, which are a set of rules defining the responsibilities of sellers and buyers for the delivery of goods under sales contracts. The specific category that refers to a transaction where the buyer takes delivery at the seller's location is EXW (Ex Works). Under EXW, the seller makes the goods available at their premises or another named place (e.g., factory, warehouse, etc.). The buyer is then responsible for all costs and risks involved in taking the goods from the seller's location to the desired destination. This term represents the minimum obligation for the seller, as the buyer assumes the bulk of the costs and risks.
Other Incoterms Categories
- FCA (Free Carrier) means the seller hands over the goods to a carrier or another person nominated by the buyer at the seller's premises or another named place.
- CPT (Carriage Paid To) involves the seller paying for carriage to bring the goods to the named destination, but assumes no risk if the goods are lost or damaged after shipment.
- DAP (Delivered at Place) means the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named destination.
In the context of this question, the correct option is option 1) EXW (Ex Works).