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  • EX WORKS [... named place ]
  • FRANCO FACTORY [... place name ]
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-Incoterms-2010-VINCULUM-Customs clearance Vladivostok-GC-IMPORT40 Factory or warehouse of the manufacturer or seller Delivery from the factory or warehouse to the departure terminal Placement of goods at the cargo terminal Placement of goods on board the vessel State border Sea transportation to the port of discharge Placement in a temporary storage warehouse at the port of arrival (unloading) Delivery of goods ready for unloading from the vehicle Cargo recipient's warehouse The area of expenses and responsibility of the buyer at EXW The area of expenses and responsibility of the seller at EXW The moment of transition of risks at EXW !

EXW ("Free Factory") (short. from the English Ex Works letters. from the place of work; German - ab Werk), also the Russian "pickup" means that the seller delivers when he makes the goods available to the buyer at his premises or at another agreed place (i.e. at the enterprise, warehouse, etc.). The seller does not necessarily load the goods on any vehicle, he is also not obliged to perform the formalities necessary for export, if any.

The parties are strongly advised to identify the item at the named place of delivery as clearly as possible, 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 acceptance of the goods at the agreed point (if any) at the named place of delivery.

EXW imposes minimal obligations on the seller. This term should be used with caution, since:

  1. the seller has no obligation to the buyer to load the goods, although in fact the seller is in a better position to fulfill it. If the seller actually loads the goods, he does so at the expense and risk of the buyer. In cases where the seller is in a better position regarding the loading of goods, it is usually advisable to use the term FCA (Free Carrier), which obliges the seller to load at his own risk and at his own expense.
  2. a buyer who purchases goods from the seller for export on EXW (Ex Works) terms must take into account that the seller is only obliged to provide the buyer with such assistance as he may need for this: the seller is not obliged to organize the execution of customs formalities for export (customs clearance for export). Therefore, the buyer is not recommended to use the term EXW (Ex Works) if he is directly or indirectly unable to ensure the fulfillment of customs formalities for export.
  3. the buyer has limited obligations to provide the seller with any information regarding the export of goods. However, the seller may need such information, for example, for tax purposes or for company 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, complexity of the organization. But at the same time, the price of the product will be the most preferable for purchase, which means that there is an opportunity for additional earnings.
In general, if the buyer is well acquainted with the features of the product itself, its behavior during transportation, has a reliable "local" forwarder, is confident in the reliability of the seller, it makes sense to save money.

Find out what needs to be done when choosing EXW Close the list of actions when EXW
  • to clarify in detail the parameters and characteristics of cargo packages (including labeling), which is necessary for subsequent customs clearance of goods;
  • taking into account the characteristics of the cargo spaces and the specifics of the transportation of goods, determine the type of vehicle;
  • specify the scope of delivery, it is desirable that it be a multiple of the volume of the vehicle that the buyer must submit for loading (wagon, motor transport, container, etc.);
  • to coordinate with the seller the exact address of the transfer of the goods;
  • agree on the timing of the delivery of the vehicle for loading;
  • to agree in advance with the seller, whose forces will be used to load the goods. It is also necessary to take into account the fact that even if the loading is carried out by the seller, 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 postscript in the contract "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 clearance of the export of goods from the country and, depending on the legislation of the country of export, find out from the forwarder or seller who is issuing which documents;
  • find out with the seller the parameters of receiving the goods in qualitative and quantitative terms, including agreeing on the documents of acceptance and transfer, issue clear instructions to your forwarder if he will accept the goods;
  • to coordinate with insurance companies the terms of insurance, if necessary;
  • pay customs fees for the import of goods;
  • to carry out customs clearance of goods;

Of course, this list is not complete and depends on the specific case, but, under these conditions of delivery, the logistics of the buyer can most significantly prove themselves and bring additional profit using an intermodal delivery.

 

 

1.General obligations of the seller and the buyer under EXW conditions

A.1.The seller is obliged, in accordance with the contract of sale, to provide the buyer with the goods, a 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 other procedure, if this is 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, a 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 other procedure, if this is agreed by the parties or is customary.

2. Licenses, permits, security controls and other formalities under EXW conditions

A.2.If necessary, the seller is obliged to assist the buyer, at his request, at his risk and at his expense, in obtaining an export license or other official permit necessary for the export of the goods.
If necessary, the seller is obliged to provide, at the request of the buyer, at his risk and at his expense, the information available to the seller required to verify the safety of the goods.
B.2.If necessary, the buyer is obliged to obtain, at his own expense and at his own risk, an export and import license or other official permit and to perform all customs formalities necessary for the export of the goods.

3.Contracts of carriage and insurance under EXW conditions

A.3.a) Contract of carriage
The seller has no obligation to the buyer to conclude a contract of carriage.
b) Insurance contract
The seller has no obligation to the buyer to conclude an insurance contract. However, the seller is obliged to provide the buyer, at his request, at his risk and at his expense (if there are expenses), with the information necessary for the buyer to obtain insurance.
B.3.a) Contract of carriage
The buyer has no obligation to the seller to conclude a contract of carriage.
b) Insurance contract
The buyer has no obligation to the seller to conclude an insurance contract.

4.Delivery and acceptance of goods under EXW conditions

A.4.The seller is obliged to 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 a specific item is not agreed upon at the named place of delivery and if there are several such items, the seller can choose the most suitable item for him. The seller is obliged to deliver the goods on the agreed date or in the agreed period.
V.4.The buyer is obliged to accept delivery of the goods as soon as they are delivered in accordance with paragraphs A4 and A7.

5. Transfer of risks under EXW conditions

A.5.The seller bears all risks of loss or damage to the goods until the moment of its delivery in accordance with paragraph A4, except for the risks of loss or damage in the circumstances specified in paragraph B5.
V.5.The buyer bears all risks of loss or damage to the goods from the moment of its delivery in accordance with paragraph A4.
If the buyer fails to fulfill the obligation of proper notification under paragraph B7, the buyer bears all risks of loss or damage to the goods, starting from the agreed date or from the date of expiration of the agreed delivery period, provided that the goods have been explicitly individualized as goods that are the subject of the contract.

6.Cost allocation under EXW conditions

A.6.The seller is obliged to bear all costs associated with the goods until the moment of its delivery in accordance with paragraph A4, except for the costs paid by the buyer in accordance with paragraph B6.
V.6.The buyer is obliged to:
a) bear all costs related to the goods from the moment of its delivery in accordance with paragraph A4;
b) bear all additional costs incurred as a result of non-acceptance of the goods after they were placed at his disposal, or as a result of non-sending of the relevant notification, as provided for in paragraph B7, provided that the goods were properly individualized, i.e. explicitly individualized as goods that are the subject of the contract;
c) if necessary, bear the costs of paying taxes, duties and other official fees payable upon export of the goods, and
d) reimburse the seller for all costs and fees incurred by him in the implementation of the assistance provided for in paragraph A2.

7.Notification to the buyer and seller under EXW conditions

A.7.The seller is obliged to provide the buyer with any notice necessary for the buyer to accept the goods.
V.7.If the buyer has the right to determine the time during the agreed period and/or the point of acceptance of delivery at the named place, he is obliged to give the seller the necessary notification about this.

8.Documentary proof of delivery under EXW conditions

A.8.The seller has no obligation to the buyer.
V.8.The buyer is obliged to send the seller a proper proof of acceptance of the delivery.

9.Inspection, packaging, labeling and inspection of goods under EXW conditions

A.9.The seller is obliged to bear all costs associated with the inspection of the goods (quality control, measurement, weighing, counting) necessary for the delivery of the goods in accordance with paragraph A4.
The seller is obliged to ensure the packaging of the goods at his own expense, except in cases when it is usually customary in this branch of trade to ship the goods specified in the contract without packaging. The seller may pack the goods in such a way as is necessary for their transportation, unless the buyer notifies the seller of the specific packaging requirements prior to the conclusion of the contract of sale. The labeling of the packaged goods must be carried out properly.
V.9.The buyer is obliged to bear the costs of mandatory inspection of the goods before shipment, including inspection, which is carried out according to the instructions of the authorities of the country of export.

10.Assistance in obtaining information and related expenses under EXW conditions

A.10.If necessary, the seller is obliged to provide the buyer in a timely manner or assist him in obtaining by the buyer, at his request, at his risk and at his expense, documents and information, including security information, which may be required by the buyer for the export and/ or import of the goods and/ or its transportation to the final destination.
Q.10.Assistance in obtaining information and related costs
The buyer is obliged to inform the seller in a timely manner about the requirements for the provision of security information so that the seller can act in accordance with paragraph A10.
The buyer is obliged to reimburse the seller for any costs and fees incurred by him for providing or assisting in obtaining documents and information, as provided for in paragraph A10.