EXW INCOTERMS (Ex Works)
EXW incoterms or “Ex Works” incoterms states that the seller must make the goods ready for collection at his premises (works, factory, warehouse, plant etc.) to be collected by the buyer. This point also marks where the transfer of cost and responsibility takes place between seller and buyer. Thus this incoterm represents the minimum obligation for the seller, and the greatest responsibility for the buyer in terms of cost and risk.
This term should not be used if the buyer cannot directly or indirectly complete the import procedures, if this is the case FCA should be used.
EXW incoterm is versatile in that it can be used irrespective of the mode of transport chosen.
SELLER’S OBLIGATIONS UNDER EXW
- Delivery of goods and documents required
- Packaging and wrapping
BUYER’S OBLIGATIONS UNDER EXW
- Payment of the goods
- Inland transport in the country of origin
- Customs at origin
- Exit charge
- International freight
- Arrival expenditures
- Customs on arrival
- Inland transport at the destination country
- Payment of fees