This term can be used regardless of the chosen mode of transport, as well as when using more than one mode of transport. It is suitable for domestic trade.
EXW ("Ex Works") (abbreviated from the English Ex Works letters from the place of work; German - ab Werk), the Russian "self-pickup" is also used, which means that the seller delivers when he places the goods at the disposal of the buyer on his premises or in another agreed place (i.e. in the enterprise, warehouse, etc.). The seller is not obliged to load the goods onto any vehicle, nor is he obliged to comply with the formalities required for export, if any.
Parties are encouraged to most accurately determine the point at the named place of delivery, as well as the fact that up to this point the costs and risks lie with the seller. The buyer bears all costs and risks associated with the adoption of the goods at the agreed point (if specified) to the named place of delivery.
EXW holds the seller's minimum obligation. This term should be used with caution, as:
the seller has no obligation to the buyer to load the goods, although in fact the seller is in a better position to do so. If the seller actually loads the goods, he does so at the buyer's expense and risk. In cases where the seller is in a better position to load the goods, it is usually appropriate to use the term FCA (Free carrier), which obliges the seller to load at his own risk and expense.
to a buyer purchasing goods from a seller for export on terms EXW (Free of charge), it should be borne in mind that the seller is only obliged to provide the buyer with such assistance that he may need for this: the seller is not obliged to organize the implementation of customs formalities for export (customs clearance for export). Therefore, the buyer is not advised to use the term EXW (Free of charge), if it cannot directly or indirectly ensure the fulfillment of customs formalities for export.
the buyer has limited obligations to provide the seller with any information regarding the export of the goods. However, the seller may need such information, for example, for tax purposes or for business reporting.
EXW these are the simplest conditions for the seller and at the same time the most difficult for the buyer, in terms of labor intensity and complexity of the organization. But at the same time, the price of the goods will be the most preferable for the purchase, which means that there is an opportunity for additional income. In general, if the buyer is familiar with the features of the product itself, its behavior during transportation, has a reliable "local" forwarder confident in the reliability of the seller, it makes sense to save money.
Learn what you need to do when choosing EXWClose the list of actions for EXW
to clarify in detail the parameters and characteristics of packages (including marking), which is necessary for the subsequent customs clearance of goods;
taking into account the characteristics of packages and the peculiarities of transportation of goods, determine the type of vehicle;
specify the scope of delivery, preferably a multiple of the volume of the vehicle that the buyer must submit for loading (wagon, vehicle, container, etc.);
agree with the seller on the exact delivery address of the goods;
agree on the time frame for submitting a vehicle for loading;
negotiate in advance with the seller, by whose forces the goods will be loaded. It is necessary to take into account the fact that even if the loading is carried out by the seller, then if there are no special clauses in the contract, the risks of loss or damage fall on the buyer. Therefore, the parties must agree with each other and make a note in the agreement "with loading at the risk of the seller" or "with loading at the risk of the buyer";
determine with your reliable and "local" forwarder the list of necessary documents for the export of goods from the country and, depending on the legislation of the country of export, ask the forwarder or seller who prepares which documents;
find out with the seller the parameters of receiving the goods in qualitative and quantitative terms, including agreeing on the delivery and acceptance documents, issue clear instructions to your forwarder if he accepts the goods;
agree on the terms of insurance with insurance companies, if necessary;
Of course, this list is not complete and depends on the specific case, but, under these delivery conditions, the buyer's logisticians can prove themselves most influential and bring additional profit using intermodal transportation.
1. General obligations of the seller and the buyer under the conditions EXW
A.1.The seller is obliged in accordance with the contract of sale to provide the buyer with the goods, commercial invoice, as well as any other proof of conformity of the goods that may be required under the terms of the contract. Any document referred to in paragraphs A1-A10 may be in the form of an equivalent electronic record or another procedure, if agreed by the parties or is customary.
V.1.The seller is obliged in accordance with the contract of sale to provide the buyer with the goods, commercial invoice, as well as any other proof of conformity of the goods that may be required under the terms of the contract. Any document referred to in paragraphs A1-A10 may be in the form of an equivalent electronic record or another procedure, if agreed by the parties or is customary.
2. Licenses, permits, security control and other formalities under the conditions EXW
A.2.If required, the seller must render the buyer, at his request, at his risk and expense, assistance in obtaining any export license or other official authorization necessary for the exportation of goods. If required, the seller must provide at the request of the buyer, at his risk and expense, available from the seller information required to verify the safety of the goods.
V.2.If required, the buyer must obtain at his own expense and risk export and import license or other official authorization and carry out all customs formalities necessary for the export of goods.
3. Transportation and insurance contracts under conditions EXW
A.3.a) Contract of carriage The seller no duty to the buyer under the contract of carriage. b) Contract of insurance The seller no duty to the buyer under a contract of insurance. However, the seller must provide the buyer, at his request, at his risk and expense (if any costs), the information necessary for the buyer of insurance.
V.3.a) Contract of carriage The buyer has no obligation to the seller to conclude a contract of carriage. b) Contract of insurance The buyer has no obligation to the seller to conclude a contract of insurance.
4. Delivery and acceptance of goods under the conditions EXW
A.4.The seller must deliver the goods by placing them at the disposal of the buyer at the agreed point (if any) at the named place of delivery, not loaded into the vehicle. If you do not agree on the specific point at the named place, and if there are several points available, the seller may select the most appropriate place for it. The seller must deliver the goods on the date or within the agreed period.
V.4.The buyer must take delivery of the goods as soon as they have been delivered in accordance with paragraphs A4 and A7.
5. Risk transfer under conditions EXW
A.5.Seller shall bear all loss or damage to the goods until it is delivered in accordance with paragraph A4, with the exception of the risks of loss or damage in the circumstances referred to in paragraph B5.
V.5.The buyer bears all risks of loss or damage to the goods from the moment of delivery in accordance with paragraph A4. At default by the buyer obligations proper notice under paragraph B7 buyer bears all risks of loss or damage to the goods from the agreed date or the expiry date of the agreed delivery period, provided that the goods were explicitly individualized as a commodity, which is the subject of the contract.
6. Allocation of expenses under conditions EXW
A.6.The seller must pay all costs relating to the goods until they have been delivered in accordance with paragraph A4, except for expenses payable by the buyer in accordance with paragraph B6.
V.6.The buyer must: a) pay all costs relating to the goods from the moment of delivery in accordance with paragraph A4; b) all additional costs incurred due to the failure of the goods, after he had been placed at his disposal, or because of failure to give the appropriate notice, as required by paragraph B7, provided that the goods have been duly appropriated to the contract, ie, explicitly individualized as a commodity, which is the subject of the contract; c) if required, bear the cost of the payment of taxes, duties and other official charges payable upon export of the goods, and d) to reimburse the seller all incurred costs and charges provided for in the implementation of paragraph A2 assistance.
7. Buyer and Seller Referral Under Conditions EXW
A.7.The seller must provide the buyer with any notice required the buyer to accept the goods.
V.7.If the buyer is entitled to determine the time within an agreed period and / or the point of taking delivery at the named place, he must account to the seller of this message required.
8. Documentary proof of delivery under conditions EXW
A.8.The seller no duty to the buyer.
V.8.The buyer must provide the seller with appropriate evidence of taking delivery.
9.Checking, packaging, labeling and inspection of goods under conditions EXW
A.9.The seller must pay all costs associated with checking (checking quality, measuring, weighing, counting) which are necessary for the delivery of goods in accordance with paragraph A4. The seller must at his own expense packaging of goods, except in cases when the particular trade is usually taken to ship specified in the contract goods unpacked. The seller can pack the goods in such a way as is necessary for its transportation, unless the buyer to sign the purchase contract does not notify the seller of specific packaging requirements. Marking packaged goods must be carried out properly.
V.9.The buyer must pay the costs for the mandatory inspection of goods before shipment, including the inspection, which is carried out by order of the authorities of the exporting country.
10. Assistance in obtaining information and related expenses under conditions EXW
A.10.If need be, the seller is obliged to provide the purchaser or to assist him in obtaining the buyer, at his request, at his risk and expense, documents and information, including important safety information, which may require the buyer for export and / or import of goods and / or transportation to the final destination.
V.10.Assistance in obtaining information and relating to this expenditure The buyer is obliged to inform the seller about the requirements for the provision of safety information, so that the seller could act in accordance with paragraph A10. The buyer must reimburse the seller incurred by him for any costs and charges for providing or rendering assistance in obtaining documents and information as provided for in paragraph A10.