EXW : Ex Works

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EXW : Ex Works (...named place)

In Ex Works, the seller/exporter/manufacturer merely makes the goods available to the buyer at the seller's "named place" of business. This trade term places the greatest responsibility on the buyer and minimum obligations on the seller. The seller does not clear the goods for export and does not load the goods onto a truck or other transport vehicle at the named place of departure.

The parties to the transaction, however, may stipulate that the seller be responsible for the costs and risks of loading the goods onto a transport vehicle. Such a stipulation must be made within the contract of sale.

If the buyer cannot handle export formalities the Ex Works term should not be used. In such a case Free Carrier (FCA) is recommended.

The Ex Works term is often used when making an initial quotation for the sale of goods. It represents the cost of the goods without any other costs included. Normal payment terms for Ex Works transactions are generally cash in advance and open account.

Examples
EXW Ex Works ABC Factory Paris, France
EXW Ex Works XYZ Printing Plant Singapore

Incoterm Category
EXW is the only "E" Incoterm. The "E" Incoterm is where the seller/exporter makes the goods available to the buyer/importer at the seller/exporter's premises/factory/warehouse.

Modes of Transport Covered
All modes of transport including multimodal.

Seller's Responsibilities (summary)

  1. Goods - Provide the goods, commercial invoice or electronic message, and other documentation as required by the sales contract.
  2. Licenses and Customs Formalities - Provide the buyer at the buyer's request, risk and cost, every assistance in obtaining any license, authorization or documentation required for export of the goods.
  3. Carriage and Insurance - The seller has no obligation to provide carriage of goods or insurance.
  4. Delivery - Make the goods available to the buyer, unloaded, at the named place and on the date stipulated in the sales contract.
  5. Risk Transfer - Assume all risks to the goods (loss or damage) until they have been made available to the buyer as above in # 4 above.
  6. Costs - Pay all costs until the goods have been made available to the buyer in accordance with #4 above.
  7. Notice to the Buyer - Provide sufficient notice to the buyer of the location and time of availability of the goods.
  8. Proof of Delivery, Transport Documents - The seller has no obligation to provide the buyer with a proof of delivery or a transport document.
  9. Checking, Packing, Marking - Pay all costs associated with checking the quality and quantity of the goods to be in conformity with the sales contract. Provide appropriate packing (unless the goods are traditionally delivered unpackaged) as required for the transport of the goods, to the extent that the buyer has made transport circumstances known to the seller prior to the execution of the sales contract. Provide marking appropriate to the packaging.
  10. Other - Provide the buyer, at the buyer's request, risk and expense, assistance in securing documentation originating in the country of origin or of export as required for export and import. Provide the buyer at the buyer's request information necessary to obtain insurance.

Buyer's Responsibilities (summary)

  1. Payment - Pay for the goods as provided in the sales contract.
  2. Licenses and Customs Formalities - Obtain at own risk and cost all export and import licenses and authorizations. Carry out all export and import formalities at own risk and cost.
  3. Carriage and Insurance - The buyer has no obligation to the seller to provide contract of carriage or insurance.
  4. Taking Delivery - Take delivery of the goods when they have been made available by the seller in accordance with the terms of the sales contract.
  5. Risk Transfer - Assume all risks (loss or damage) from the time the goods have been made available by the seller in accordance with the terms of the sales contract.
  6. Costs - Pay all costs for carriage and insurance from the time the goods have been made available by the seller in accordance with the terms of the sales contract. Pay all costs resulting from failure to take delivery at the named place and time. Pay all costs relating to export and import including duties, taxes, customs formalities and other charges including transshipment.Reimburse the seller for costs of providing assistance in obtaining export licenses and authorizations.
  7. Notice to Seller - If, according to the sales contract, the buyer is able to specify a time within a stipulated period, and/or specify a place of taking delivery, to give the seller sufficient notice.
  8. Proof of Delivery - Provide the seller with evidence of having taken delivery.
  9. Inspection(s) - Pay for the costs of pre-shipment inspection(s) including inspections required by the country of export.
  10. Other - Pay and/or reimburse the seller for all costs associated with securing documentation originating in the country of origin or export as required for export and import.
View details of other Incoterms

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