EXW stands for Ex Works… (named place), which means delivery at the factory (….. designated place). It means that when the seller hands over the goods to the buyer at its location or other designated place (such as a workshop, factory or warehouse), the delivery is completed. The seller does not handle export customs clearance procedures or load the goods on any means of transport.
This term is the term with the least responsibility for the seller. The buyer must bear all risks and costs after receiving the goods at the seller’s location. The “2010 Incoterms” points out that this term is more suitable for domestic trade. For international trade, when the buyer cannot handle export procedures directly or indirectly, this term should not be used, but FCA should be used.
1. Seller’s obligations
(1) Place the goods at the buyer’s disposal at the time and place specified in the contract.
(2) Bear all risks and costs before the goods are disposed of by the buyer.
(3) Submit a commercial invoice or an electronic record or procedure certificate with equivalent effect.
2. Buyer’s Obligations
(1) Accept the commercial invoice and other documents submitted by the seller, receive the goods at the time and place specified in the contract, and pay the purchase price in accordance with the contract.
(2) Bear all risks after receiving the goods, and handle transportation and insurance procedures at its own expense.
(3) Obtain official export and import certificates at its own risk and expense, and handle all customs formalities required for the export and import of goods, and pay export and import duties and other related fees.