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Ex Works (. . . named place of delivery) (EXW)

Incoterms© 2020, enter into force January 1, 2021

One of the 11 Incoterms© 2020.
In Ex Works, the seller/exporter/manufacturer merely makes the goods available to the buyer at the seller’s “named place of delivery,” which is commonly, but not necessarily, the seller’s place of business.

With EXW, the seller has no responsibility to load the goods onto a truck or other transport vehicle or to clear the goods for export. This trade term places the greatest responsibility on the buyer and minimum obligations on the seller.

The parties to the transaction, however, may stipulate that the seller be responsible for loading the goods onto a transport vehicle at the risk and cost of the buyer. Such a stipulation is a variant and must be made within the contract of sale.

When using the FCA term, it is advisable to clearly specify in the contracts of sale and carriage the precise point of delivery.

The EXW term is generally not recommended for international trade transactions, as loading the goods at the seller’s named place and handling export formalities usually places too much of a burden upon the buyer.
If the buyer cannot handle loading the goods or export formalities, the EXW term should not be used. In such a case, FCA is recommended.

The EXW 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.
The EXW term is commonly used in courier shipments when the courier picks up the shipment from client’s premises and loads courier’s own truck.
Payment terms for Ex Works transactions are generally cash in advance and open account.

See Incoterms© 2020, World Trade Press Illustrated Guide to Incoterms© 2020 Appendix for details.

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