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Incoterms explained: Ex Works (named place of loading) – EXW

Updated: Apr 18, 2019

The Ex Works term can be used for any mode of transport and places the maximum obligation on the buyer of the goods to arrange transportation from the named place. Any risks incurred during transit are also the responsibility of the buyer.

Once the seller has made the goods available at their premises, their responsibilities are complete however for some modes of transport, the loading on the collecting vehicle is performed by the seller. An example of this is a pallet of goods being loaded on to the collecting vehicle with a fork hoist owned by the seller. There is no obligation under the EXW term for them to do so however it is quite common for this to occur. This arrangement should be made clear by adding wording to this effect in the contract of sale.

The buyer is responsible for clearing the goods through Customs at the origin country and completing all export documentation.

If the EXW term does not accurately cover the agreement between two parties, the Free Carrier FCA term may be more suitable and provide greater flexibility.

The above Incoterm description is a general overview and the Incoterms 2010 Rules published by the International Chamber of Commerce should be consulted to avoid misunderstanding. Alternatively, contact us to discuss which Incoterm applies to your shipment.


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