EXW (Ex Works)
From Supply Chain Management Encyclopedia
General Provisions
In accordance with rules of Incoterms® 2010,[1] EXW (Ex Works) may be used irrespective of the mode of transport selected. The EXW may be used where more than one mode of transport is employed. The EXW is also suitable for domestic trade. This rule means that the seller delivers when it places the goods at the disposal of the buyer at the seller's premises or at another named place (i.e., works, factory, warehouse, etc.). The seller does not need to load the goods on any collecting vehicle, nor does it need to clear the goods for export, where such clearance is applicable. The parties are well advised to specify as clearly as possible the point within the named place of delivery, as the costs and risks to that point are for the account of the seller. The buyer bears all costs and risks involved in taking the goods from the agreed point, if any, at the named place of delivery. Minimum obligation for the seller, but should be used with care as the seller has no obligation to the buyer to load the goods. If the seller does load the goods, it does so at the buyer's risk and expense. [[[FCA (Free Carrier)]], which obliges the seller to do so at its own risk and expense, is usually more appropriate]. Seller has an obligation to provide only such assistance as the buyer may require to effect that export: the seller is not bound to organize the export clearance. Buyers are well advised not to use EXW if they cannot directly or indirectly obtain export clearance. The buyer has limited obligations to provide to the seller any information regarding the export of the goods. However, the seller may need this information for, e.g., taxation or reporting purposes.
Summary on Buyer's and Celler's Resposibilities under EXW
| Seller's Responsibilities (in brief) | Buyer's Responsibilities (in brief) | |
| Goods - Payment | Provide the goods, commercial invoice, and other documentation as required by the sales contract. | Pay for the goods as provided in the sales contract. |
| Licenses, Security, and Customs Formalities | Provide the buyer, at the buyer’s risk and cost, assistance in securing any license, documents, authorizations, and security clearance required for the export of the goods. | Obtain any import licenses or authorizations and handle all import customs formalities. |
| Carriage | The seller has no obligation to provide for carriage of goods. | Buyer has no obligation to the seller. |
| Insurance | The seller has no obligation to provide for insurance. Provide the buyer, at the buyer’s request and cost (if any), information required to obtain insurance. | Buyer has no obligation to the seller. |
| Delivery - Taking Delivery | Make the goods available to the buyer at the named place and point of delivery at the time stipulated in the sales contract. If the buyer has not stipulated a specific point at the named place of delivery, the seller may pick one that suits seller’s purposes. | Take delivery of the goods at the named port of destination as provided in the contract. |
| Risk Transfer | Assume all risks of loss or damage to the goods until they have been made available to the buyer at the named place of delivery, at the agreed-upon time stipulated in the sales contract. | Assume all risk of loss or damage from the time the goods have been delivered on board the ship at the port of shipment (not destination). |
| Costs | Pay all costs until the goods have been made available to the buyer at the named place of delivery. | Pay any additional costs for the goods, other than main carriage, once they have been delivered on board the ship at the port of shipment. Pay costs of unloading, lighterage, and wharfage at the port of destination unless such costs were to be paid by seller under seller’s contract for carriage. Pay all costs relating to import formalities, duties, fees, and taxes. Pay costs of onward carriage. |
| Notice to the Buyer - Notice to Seller | Provide notice that enables the buyer to take delivery of the goods. | If, according to the sales contract, the buyer is entitled to specify a time for shipping or the point of receiving the shipment at the named port of destination, to give seller sufficient notice. |
| Delivery and Transport Documents - Proof of Delivery | The seller has no obligation to provide the buyer with a delivery document. | Accept the seller’s delivery document if it is in conformity with the sales contract. |
| Checking, Packing, Marking - Inspection(s) | Pay all costs associated with checking the quality and quantity of the goods to be in conformity with the sales contract. Package the goods, unless the goods are conventionally sold unpackaged. Package the goods as the seller deems appropriate for transport, unless the buyer has given specific requirements prior to the finalization of the sales contract. Provide marking appropriate to the packaging. | |
| Other | Timely provide the buyer, at the buyer’s request and cost, with assistance in securing information and documents, including security information, the buyer requires for export, transport, and import of the goods to the final destination. | Timely advise the seller of any security-related data requirements. Reimburse the seller for seller’s costs related to securing information or documentation, including security information, that the buyer requires for import formalities, security clearance, and transport of the goods to the final destination. Timely provide the seller, at the seller’s request and cost, with any documents and information required for export, transport, and security clearance of the goods to the named port of destination. |
10. Other—Timely provide the buyer, at the buyer’s request and cost, with assistance in securing information and documents, including security information, the buyer requires for export, transport, and import of the goods to the final destination.
References
- ↑ Incoterms® 2010: ICC rules for the use of domestic and international trade terms – ICC Publication No 715E
