EXW

EXW

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Ex Works (… named place)

“Ex works” means that the seller delivers when he places the goods at the disposal of the buyer at the seller’s premises or another named place (i.e. works, factory, warehouse, etc.) not cleared for export and not loaded on any collecting vehicle.

This term thus represents the minimum obligation for the seller, and the buyer has to bear all costs and risks involved in taking the goods from the seller’s premises.

However, if the parties wish the seller to be responsible for the loading of the goods on departure and to bear the risks and all the costs of such loading, this should be made clear by adding explicit wording to this effect in the contract of sale. This term should not be used when the buyer cannot carry out the export formalities directly or indirectly. In such circumstances, the FCA term should be used, provided the seller agrees that he will load at his cost and risk.

Incoterms

“Incoterms” provide a set of international rules for interpreting the most commonly used trade terms in international trade.

The purpose of these terms is to avoid the confusion caused by varying interpretations in different countries. Often parties to a contract are unaware of the unique trading practices in their respective countries. This can give rise to misunderstandings, disputes and litigation, resulting in a waste of time and money.

In order to remedy these problems, the International Chamber of Commerce (ICC) first published a set of international rules for the interpretation of trade terms in 1936. Amendments and additions have been made since then to keep the rules in line with current international practices.

The following preambles neither constitute the full text of Incoterms 2000, nor a summary of them. They only present selected features of Incoterms.