x Do private individuals and businesses importing and exporting goods need to learn more about EXW conditions?
x Do you want to know the content and responsibilities of the seller and the buyer under EXW Incoterms?
x If your business does not have experience using EXW conditions, do you need to pay attention to anything?
The term EXW is often seen in import-export trade transactions... at Proship.vn will help you clarify what EXW conditions are; What is the content of the EXW delivery conditions, what are the responsibilities of the seller and the buyer; When using EXW, you should note the following.
What is the EXW condition?
What is EXW in import and export? EXW condition stands for Ex Work, which means Ex-Works Delivery or Factory Price. This is one of 11 terms in Incoterm and is used for all modes of transport, including inland waterways, air and sea.
EXW delivery conditions stipulate that the seller delivers the goods to the buyer at the workshop, warehouse or factory, etc. The buyer is responsible for all remaining tasks such as loading goods onto the means of transport, booking ships, etc.
In foreign trade contracts, the EXW term is referenced by stating the clause accompanying the seller's delivery address (the exporter's warehouse is the most commonly used location). Use the following structure: EXW + Delivery location + Incoterms version.
* Example: If the seller's delivery location is Nhon Trach 1 Industrial Park, Dong Nai. Documents and contracts need to clearly show: EXW Nhon Trach Industrial Zone – Dong Nai – Vietnam, Incoterms 2010.
Detailed content in EXW delivery conditions
EXW conditions will include the following specific contents and regulations:
About the mode of transport
EXW delivery terms will be used for all modes of transport and can be used when multiple means of transport are involved. EXW incoterms 2010, 2020 terms are suitable for domestic trade.
LATEST UPDATE PICTURES OF CONTAINER PROSHIP LOGISTICS TRACTOR
About the place of delivery or delivery location
The parties should stipulate as clearly as possible the place of delivery at the named place of delivery. This will help the parties clearly identify when and where the goods and risks in them pass from the seller to the buyer, and also the point from which all costs associated with the goods are transferred. Shipping will be borne by the buyer.
If the parties have not agreed on a specific point at the named place of delivery and if there are more than one possible delivery point at the named place, the seller may choose a delivery point that best suits the purpose of delivery. your destination.
About transfer of goods and risks
Factory delivery refers to the delivery of goods to the buyer at a location designated by the seller, which may be at the seller's premises or another location such as a factory, warehouse, workshop, etc.
This location does not have to be a merchant facility. During the delivery process, the seller is not obliged to load the goods onto the means of transport designated by the customer, nor to carry out export customs procedures.
About the responsibilities of sellers and buyers
What are the responsibilities of the seller and the buyer under EXW terms? The provisions of the EXW condition in Incoterms 2020 specify the responsibilities and obligations of the seller and buyer as follows:
Seller's responsibility
- The seller must fully prepare the goods as per the contract and provide documents related to the goods and notify the correct time and place of delivery, ensuring delivery to the right place specified in the contract;
- The seller is responsible for damages, costs and risks until the goods are loaded onto the buyer's means of transport;
- Support buyers with export procedures upon request or in case the contract stipulates;
- There is no responsibility for loading and bears the costs of loading the goods onto the means of transport designated by the buyer, unless the contract stipulates otherwise.
Buyer's responsibility
- Pay in full for the goods and bear all risks and costs arising from receiving the goods at the seller's facility. Includes the following costs: goods inspection costs, loading costs, insurance costs, export customs clearance costs and reimbursement of some costs spent by the seller to support themselves,...;
- Receive goods at the location and time agreed in the contract;
- Carry out export, transit and import customs clearance procedures for shipments. At the same time, it is the party that bears the costs related to the above.
* In short, EXW is the Incoterms term where the buyer has maximum responsibility and costs, while the seller has minimum responsibility and costs.
Using EXW delivery terms, what should you note?
When using EXW delivery terms, buyers and sellers should note:
- If the buyer cannot directly handle the export procedures or asks someone else to participate indirectly, these conditions should not be used because if so, the seller will have to bear the costs and risks arising;
- Buyers and sellers only need to comply with the terms stated in the contract. Other things will have to be added if they want to change the conditions;
- The seller has no responsibility to participate in loading and unloading the goods, however, if requested, he can help by receiving a support fee;
- It is necessary to clearly state the delivery location and costs and risks during the sales process and the buyer needs to pay all related costs during the process of loading and unloading goods from the factory to the means of transport;
- The buyer is the one who directly transacts if he wants to apply the EXW conditions, otherwise the EXW conditions will not be fulfilled;
- Buyers limit providing information about exported goods to sellers, but sellers also need to know information to calculate taxes and prepare sales reports;
- It is necessary to provide reasonable conditions in the contract to facilitate buying and selling because these conditions, if not supplemented with terms, are quite disadvantageous for the buyer and very beneficial for the seller;
- After the goods leave the factory, the seller does not have to bear the risks related to the goods because all of them have been transferred to the buyer.
Above is the knowledge you need to know about EXW conditions , what is the content of EXW conditions, how the responsibilities of the buyer and seller are regulated in EXW, what to note,... were quickly answered by Proship Logistics. If your import-export business has any questions related to EXW delivery conditions, please contact 0909 344 247 for answers and cheap Multi-modal transportation services.
