EXW (Ex Works)

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Russian: EXW Франко завод (...названное место)

Contents

General Provisions

In accordance with rules of Incoterms® 2010,[1] the EXW rule, - EXW (Ex Works) (. . . named place of delivery), - 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.


Table 1. Seller's/Buyer's Responsibilities Allocation for Carriage Arrangements, Transaction Costs, and Risk Transfer as Stated by the EXW rule of Incoterms® 2010
Facilities3.png

Facilities4.png

Papers1.jpg

Customs.jpg

Truck.png

Train.png

Delivery.png Craneto.jpg Onboard.png Ship.png

Plane.png

Truck.png

Train.png

Onboard.png Cranefrom2.png De.png

Conterm.png

Truck.png

Train.png

Customs.jpg

Papers1.jpg

Importer1.png

Importer.png

Seller (Exporter), Named Place, Seller's Facilities Export Documents, Formalities, and Duties (if any) Pre-carriage to Named Place, Not Unloaded Delivery at Named Place / Port, Unloaded Ready for Loading at Named Place / Port of Shipment Loaded on Bord of Ship or Veihle Transport by Air, Rail, Road, Water, or Multimodal On Board Ship or Vessel, Not Unloaded Discharging (Unloading) at Named Place / Port of Destination Delivery at Named Place / Terminal Onward Carriage to Named Place, Not Unloaded Import Documents, Formalities, and Duties Buyer (Importer) - Named Place, Unloaded
Seller's/Buyer's Responsibilities Allocation for a Contract for the Carriage of Goods as Stated by the EXW rule of Incoterms® 2010
Seller►►► ●●Buyer► ●●Buyer► ●●Buyer► ●●Buyer► ●●Buyer► ●●Buyer► ●●Buyer► ●●Buyer► ●●Buyer► ●●Buyer► ●●Buyer► ●●Buyer►
Seller's/Buyer's Responsibilities Allocation for Transaction Costs as Stated by the EXW rule of Incoterms® 2010
Seller►►► ●●Buyer► ●●Buyer► ●●Buyer► ●●Buyer► ●●Buyer► ●●Buyer► ●●Buyer► ●●Buyer► ●●Buyer► ●●Buyer► ●●Buyer► ●●Buyer►
Seller's/Buyer's Transaction (Loss/Damage of Goods) Risk Transfer as Stated by the EXW rule of Incoterms® 2010
Seller►►► ●●Buyer► ●●Buyer► ●●Buyer► ●●Buyer► ●●Buyer► ●●Buyer► ●●Buyer► ●●Buyer► ●●Buyer► ●●Buyer► ●●Buyer► ●●Buyer►



Summary on Buyer's and Seller's Resposibilities under EXW Incoterms® 2010

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 export and import licenses or authorizations, and handle all export and import customs formalities.
Carriage
  • The seller has no obligation '[1] to provide for carriage of goods.
  • Buyer has no obligation [1] to seller for carriage.
  • Provide for carriage of the goods from the named place of delivery to the buyer’s destination.
Insurance
  • The seller has no obligation [1] 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 [1] to seller for insurance.
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 as provided in the sales 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 (made available) at the named place of delivery as provided in the sales contract.
  • Assume all risk of loss or damage if the goods are not picked up at the agreed-upon time and place.
Costs
  • Pay all costs until the goods have been made available to the buyer at the named place of delivery.
  • Pay all costs from the time the goods have been delivered (made available) at the named place of delivery.
  • Pay all costs related to carriage of the goods from the named place of delivery to the buyer’s final destination.
  • Pay all costs resulting from failure to take delivery at the named place and time.
  • Pay all costs relating to export and import formalities, duties, fees, and taxes, and other charges including transshipment.
Notice to the Buyer - Notice to Seller
  • Provide notice that enables the buyer to take delivery of the goods.
  • Give seller sufficient notice, if, according to the sales contract, the buyer is entitled to specify a time for taking delivery or the point of taking delivery at the named place of delivery.
Delivery and Transport Documents - Proof of Delivery
  • The seller has no obligation [1] to provide the buyer with a delivery document.
  • Provide the seller with evidence of taking delivery.
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, the buyer requires for export and import formalities, security clearance, and transport of the goods to the final destination.

Examples[2]

  • EXW, Furniture Factory Number One, Full Address, Milan, Italy
  • EXW, Flavor-Aid, Inc., Full Address, West Chicago, United States

Notes

  • [1] According to Incoterms rules, seller and buyer have reciprocal responsibilities only. The "no obligation" term often used in the rules of Incoterms means that one party has not obligation to the other party. In this case (Art. А.3.А - Incoterms® 2010) the seller has obligation neither to arrange nor to pay the contract on carriage. The same way, the "no obligation" term concerning the contract on carriage applied to the buyer (Art. В.З.А - colspan="2"|) describes the buyer’s position, where the latter has not responsibility to the seller for the contract on carriage. Therefore, in accordance with the EXW rule, no one from the contract parties has responsibility to the second contract party. The "no obligation" term has the same understanding for the both parties in the case of insurance. However, the "no obligation" term being applied to the second party does not mean that the task performance is out of the first party’s interests. So, for the case of the EXW rule, despite the fact that the buyer has not responsibility to the seller for the contract on carriage, it is clear, that the buyer has an interest to have such a contract on carriage that will deliver the goods to the buyer’s place of destination safely and in the time stipulated.
  • [2] The examples given herein are to illustrate the syntax of Incoterms® 2010 rules and could conform with any real data occasionally only.

References

  1. Incoterms® 2010: ICC rules for the use of domestic and international trade terms – ICC Publication No 715E
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