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Ex works delivery term means the maximum liability on the buyer, ie the importer, and the minimum obligations on the seller, ie the exporter. Ex Works
exw, incoterms, usatradevisa

Ex-works, Ex factory Delivery Term

Ex Works (EXW) / Delivery in Business - Delivery at Work

Ex works, delivery term is the least risky and lean form of transportation for exporters. There are 11 different types of delivery term in 2010 incoterms list and "exw delivery term" is the one of them.

What Is Exw - What Is Ex Works - Exfactory

Ex works delivery term means the maximum liability on the buyer, ie the importer, and the minimum obligations on the seller, ie the exporter. Ex Works is often used when the initial bid is given by exporters because it does not include any cost items except the price of the good and the packaging cost. So, all transportation costs, insurance and customs cost will be pay by buyer and also all risks belong to the buyer.

How to Calculate Ex Works Price

EXW refers to the process by which the purchaser, ie the importer, takes all costs and risks, including customs clearance, shipment, insurance, until the final destination, by taking the goods from the seller, ie the exporter's factory or warehouse.

Ex works price of the goods, the price of the goods are naked, so there are no additional costs such as customs, insurance, freight. Therefore, the unit price on the Ex works bill only includes the production costs of the goods and the seller's profit share.

Ex Works: How it is Work

In the case of Ex Works delivery, the seller is also responsible for loading the goods from the buyer's factory. This means that if any other loading service needed, such as forklift, crane, buyer should find and organize these vehicle and make them ready at seller place at the loading time. The buyer is responsible for allthings about the shipment. However, in practice, many sellers help buyer's about these operations and billed them the expenses or without reflecting an additional cost.

According to Ex Works, the buyer, the importer, is responsible for all customs documents and customs expenses. At this point, the seller, the exporter, by preparing his own bill and check list, the buyer authorized by the importer to communicate to the customs brooker and the vendor authorized shipping company. The exporter company send the details to transporter and customs brooker such as:, product quantity, weight, number of pallets, packaging type and other things which is need to prepare customs documents and also seawaybill. The exporter is responsible to giving these informations to customs brooker and transport company. 

In practice, the seller appears to have used his own customs counselor for customs clearance, completed the customs stage, billed the customs costs separately, or added "customs charges" in his original invoice.

"Ex Works" Delivery Term; Buyer's Responsibilities:
Seller (Exporter) only responsable to make ready exporting goods when buyer send the truck to the factory or facility. The seller also responsible in accordance with the shipping requirements, and to load them in a palletized or cushioned form if deemed necessary according to the type of goods. 

Buyer (Importer)  is responsible for all costs and risks, including transportation, insurance, customs clearance from a to z, until the goods reaches the destination point from the seller's warehouse or factory.

The term EXW represents a minimum liability to the seller. However, if both parties agree that the seller will take additional obligations such as loading the goods, organizing internal transportation, carrying out the customs operations, all additional responsibilities not covered by the ex works delivery form should be clarified by a contract.

The seller, the exporter, the buyer, ie the importer, customs documents, shipping documents and insurance documents are required to provide the information needed for the preparation of documents.

Modifications «EXW Loaded - EXW factory -" EXW ... city .. ".».

The revised version of Incoterms 2000 introduced the concept of EXW Loaded  as a frequently used application: the vendor is responsible for loading goods into the buyer's vehicle at their premises.

Ex Works Delivery Term: Seller & Buyer Responsibilities

details EXWCostsRisks
PackagingSeller ie exporterSeller ie exporter
Internal shipment (to the harbour)Buyer ie importerBuyer ie importer
Customs clearenceBuyer ie importerBuyer ie importer
Port Loading (handling charges)Buyer ie importerBuyer ie importer
Shipment (main shipment charges)Buyer ie importerBuyer ie importer
InsuranceBuyer ie importerBuyer ie importer
Port Unloading at destination (handling charges)Buyer ie importerBuyer ie importer
Customs clearence at destinationBBuyer ie importerBuyer ie importer
Internal shipment at destinationBuyer ie importerBuyer ie importer


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Ex works delivery term means the maximum liability on the buyer, ie the importer, and the minimum obligations on the seller, ie the exporter. Ex Works
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