Exworks (EXW) is a very basic Incoterm and is often used when the buyer is arranging their own transportation and/or insurance.
Exworks (EXW) is an international trade term, also known as an Incoterm, established by the International Chamber of Commerce (ICC). Moreover, these terms are essential in defining the responsibilities and obligations of buyers and sellers involved in cross-border trade. In addition, Exworks is often considered one of the simplest Incoterms, making it an attractive choice for both newcomers and experienced traders.
Seller’s Responsibilities With Exworks:
- Ensuring that the goods are available for the buyer to pick up at the specified location.
- Providing any necessary documentation, such as invoices and packing lists.
- Assisting with export customs clearance, if required.
Buyer’s Responsibilities With Exworks:
- Arranging transportation from the seller’s location to the final destination.
- Handling import customs clearance and paying all associated duties and taxes.
- Securing insurance coverage for the goods during transit, if necessary.
- Bearing the risk of loss or damage to the goods from the moment they leave the seller’s premises.
