EXW | EX Works

EXW | EX WORKS

EXW (named place) INCOTERMS 2020

EXW means the seller has gone through with all its liabilities when he/she makes the goods available in a named place like plant or port, at the disposal of the buyer. This place can be and can not be the premise of the seller.

In order for the seller to have delivered the goods under EXW, he/she does not have to load the cargo to the transportation vehicle provided by the buyer. Also, the seller does not have to take care of export formalities at the country of origin.

What you really need to watch for:

• This terms can be used for any mode of transportation.
• It is highly recommended that both parties define the location as precisely as possible. If for example there are 3 different warehouses in a city, the name of the warehouse should be exactly mentioned. The location named in the EXW rule, is where the risk is transferred from the seller to the buyer. This is also the location from where the costs are on the buyer's account.
• If the parties do not agree on the exact point within the named place of origin which we call "location" here, it means they have agreed to leave it up to the shipper to choose the exact location where he/she thinks best fits the requirement of the delivery and it can expose the buyer to probable unnecessary risk as it might be a location which can increase the risk of loss or damage to the goods.
• It is important for the buyer to note that in EXW, the lowest level of liability is on the seller's account and the buyers bears the highest level of liability, hence, if you are the buyer, you should use this terms with caution.
• In EXW, the shipper does not have to load the goods to the transport vehicle arranged for by the buyer, while it is very usual and common that the loading is carried out by the buyer as normally and naturally, the loading takes place at the buyer's warehouse and it is the buyer that has access to the loading equipments, in other words, in EXW, while the shipper is not responsible for loading, the shipper does the loading and it is done for the risk of the buyer. If the cargo falls off the forklift in the seller's warehouse during the loading process, the seller can rightfully say he/she is not responsible. So, if you are the buyer, it is highly recommended to make it very clear that while EXW is used, the seller becomes liable for loading. Yes, you can make supplementary comments in your contract for the Incoterms' rule you are agreeing on, or, more preferably, you can use FCA instead of EXW as in FCA, the seller is responsible for loading.
• In EXW, the seller is not responsible to clear the cargo for export from the country of origin, where the seller resides, while it is much easier for the seller to go through with this process and naturally and normally, the seller is more aware of the customs know-how in his/her hometown. So, if you are the buyer, it is highly recommended to make it very clear that while EXW is used, the seller becomes liable for export customs clearance. Yes, you can make supplementary comments in your contract for the Incoterms' rule you are agreeing on, or, more preferably, you can use FCA instead of EXW as in FCA, the seller is responsible for export customs clearance.