Ex works

GLOSSARY

EXW (Ex works)

Ex works (EXW) is an Incoterm. It means that the seller is responsible for delivering the ready goods to the buyer at the seller's factory, mill, plant or warehouse, but is usually not responsible for loading the goods onto the vehicle prepared by the buyer or for customs clearance of the goods. The buyer assumes the subsequent costs and risk of shipping from the seller's premises to the intended destination.

What is EXW(Ex works)?

Ex works (EXW) is an Incoterm. It means that the seller is responsible for delivering the ready goods to the buyer at the seller's factory, mill, plant or warehouse, but is usually not responsible for loading the goods onto the vehicle prepared by the buyer or for customs clearance of the goods. The buyer assumes the subsequent costs and risk of shipping from the seller's premises to the intended destination.

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Key takeaways:

The seller is exclusively responsible for the initial maintenance of the goods.

The customer is responsible for the entire shipping process.

Only the buyer is responsible for loading products from the point of origin to his warehouse/factory.

All legal formalities are taken care of by the buyer.

From the warehouse to the customer's premises, the buyer is responsible for all charges, risks, and responsibilities associated with the goods.

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Obligations of the Seller:

1. Goods, commercial invoices, and documents

2. Deliver the goods to the buyer at the agreed place on the agreed date.

3. Notification to the buyer in order to facilitate delivery

4. Packaging and labeling for export

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Obligations of the Buyer:

1. Pay the goods' cost as mentioned in the sales contract.

2. Provide evidence that you have received delivery to the seller.

3. Loading at the seller's place (unless otherwise agreed upon)

4. Licenses for export and customs formalities

5. Pre-carriage to terminal

6. Charges for loading

7. The major carriage

8. Discharge and subsequent shipping

9. Formalities and Duties of Import

10. The cost of a pre-shipment inspection

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What's the difference between Ex Works and FCA?

In ex works, the buyer is responsible for the goods from the factory, mill, plant or warehouse, whereas in FCA, the seller delivers the export approved goods to the carrier at the stated location according to the terms and conditions agreed upon by both the seller and the buyer.

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Related Terms:

FOB FCA