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EXW (Ex Works): The Starting Point
Under EXW EX Works term, the seller’s obligations are minimal: prepare the goods for pickup. The buyer bears all the risk and responsibility from the factory door onward. Picture a humble factory, where a product’s journey begins. This is the essence of EXW. Born in the 1936 version of Incoterms, EXW has stood the test of time, reminding us of the simplicity of early commerce.
Seller’s Obligations:
Make goods available for pickup at their premises or another named place.
Assist the buyer, at the buyer’s request and cost, in obtaining any necessary export licenses.
Buyer’s Obligations:
Arrange and pay for transportation from the named place.
Clear goods for export and import, paying any customs duties.
Read EX Works term in Wikipedia or inquire us for cargo booking and the newest prices.
EXW instance:
Here’s an example of how Ex Works pricing and shipping work:
A LCD screen shipper from Dongguan China, sells to a LCD screen buyer in Germany. They ship the LCD screens in one container from the screen factory in Dongguan to an ocean shipping facility in Shenzhen China, to the destination in Hamburg, Germany. Under Ex Works, the LCD screen shipper is responsible for packaging the goods well and preparing them for export. On the other side, the buyer in Germany is responsible for most of the expenses from the above-mentioned Dongguan factory to their local warehouse in Hamburg. Besides covering the cost of goods, the Hamburg buyer needs to cover the cost of the truck transportation from the warehouse to the port, the cost of ocean transportation, the additional costs of insurance for the LCD screens, import taxes and duties in Germany.
Please note that the Dongguan seller and Hamburg buyer mentioned in this article are not affiliated with Indeed.
