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Ex Works ( EXW)



 

 Any types of transport mode, including Multimodal Transport

Ex Works Incoterms 2010

Ex Works

With the Ex Works Incoterms® rule, the number of obligations are very limited since all that is required is to provide goods at the Seller’s premises (manufactory, warehouse, workshop etc.).

The Seller does not even have to load the goods in the pre-carriage vehicle. If the client formally requests it, the Seller can perform this task. However, any potential damage during the loading process will be under the buyer’s responsibility.

Therefore, the transfer of the risks (loss or damage) occurs as soon as the seller makes the goods at the Buyer’s disposal in his own warehouse.

In this case, the Seller avoids most of the risks associated with a cross-border transaction.

In much the same way, the Seller does not have the duty to handle the export clearance process. Nevertheless, upon buyer’s request, the seller must provide assistance for obtaining necessary documents (Export licence, official authorisation and other formalities, document for transport) with the related costs at the expense of the buyer.

When a pre-shipment inspection is required, this will be at buyer’s expense.

View PageWhen should I use Ex Works (EXW) Incoterms rule?

It must be borne in mind that this incoterm can be particularly burdensome for the buyer who has to handle the whole process from the seller’s country to the domestic market.

Needless to say that, unless the buyer is familiar with the exporter’s country or has sufficient human resources, this incoterms rule can easily be perceived as a deterrent to business relationship development.

This is why the Ex Works (EXW) Incoterms rule is more adapted to domestic transactions.

Therefore, sellers willing to limit the extent of their obligations and sell internationally should choose the Free Carrier (FCA) Incoterms rule, instead.

Usual Documents required:

Commercial Invoice