Sale by Origin is a trading method in international trade where the origin of goods serves as the quality or specification standard. It means that the buyer purchases goods based on the traditional reputation, geographical indication, or specific production conditions of the seller's country or region, rather than on specific specifications, grades, or samples. It is commonly used for agricultural products, food, alcoholic beverages, and handicrafts with unique quality or reputation, such as 'French Champagne', 'West Lake Longjing Tea', and 'Jingdezhen Porcelain'. Precautions: The seller must ensure that the goods are indeed produced in that origin and that their quality meets the usual or agreed standards of that origin; if the origin name is protected by geographical indication, relevant regulations must be complied with. Unlike 'Sale by Sample' or 'Sale by Specification', it does not rely on physical samples or precise parameters but on the reputation of the origin. It also differs from 'Sale by Trademark', which emphasizes the brand, while this emphasizes geographical origin. The risk is that origin standards may be ambiguous and lead to disputes, so it is advisable to specify the origin range, grade, or reference specific standards in the contract.
📝 Examples
1. We ordered a batch of French Bordeaux AOC-level red wine under Sale by Origin, requiring a certificate of origin and a quality certificate. (Note: The Bordeaux origin is used as the quality basis, and documentary evidence is required.)
2. The tea under this contract is traded on a 'Sale by Origin' basis, and the seller guarantees that the goods are produced in the West Lake region of China and meet the premium grade standard of that region. (Note: Specify origin and grade to avoid disputes.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
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