What is Incoterms 2010 EXW?

What is Incoterms 2010 EXW?

EXW – Ex Works “Ex Works” 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.).

What is EXW Incoterms?

EXW stands for Ex Works, an incoterm whereby the buyer of a shipped product pays for the goods when they are delivered to a specified location. FOB, or Free on Board, instead shifts the responsibility of the goods to the buyer as soon as they are loaded onboard the ship.

What does EXW delivery mean?

An EXWorks Incoterm is an agreement that maximizes the buyer’s risk and responsibility, by requiring the seller to only make the goods available for the buyer at their warehouse or dock. Once the buyer collects the cargo, the buyer assumes all other responsibilities, including transport to the port of destination.

Is Incoterms 2010 still valid?

Can I still use Incoterms® 2010 after January 1, 2020? Yes, all contracts using any incoterms are valid if they are agreed upon by all parties to the transaction, and correctly identified on the export-related documents.

Who is the shipper in EXW?

On an ex-works sale to be delivered to the buyer, however, all three parties are the same. This is obvious with respect to the identity of the consignee and owner, perhaps less so as to the shipper. By a simplistic definition, the “shipper” is the party dispatching the shipment.

Which is better FOB or EXW?

Goods bought on EXW terms will often be slightly cheaper than products bought on FOB terms, as the supplier will include the costs of transport to the port, handling of the goods, and customs clearance to a FOB trade. Full control of the cargo and the transportation cost from start to finish.

What is the disadvantage of using EXW?

One major disadvantage of EXW to buyers is related to customs clearance. According to the EXW terms, sellers are required to facilitate the paperwork for export clearance. If sellers’ information is inaccurate, the buyers are still responsible for the additional cost and results of delays.

What is the advantage for the shipper in EXW?

Apart from when the goods are with customs, the buyer is in control of the entire shipment. This gives the buyer full visibility and ensures that the supplier isn’t inflating their local costs or adding a margin to the delivery fee.

Are incoterms EXW rules suitable for international trade?

It is for this very reason that the EXW rules is not suitable for international trade even though some traders may think it gives them better control of the goods but it does given them many grey hairs.