What does ex-works mean in Incoterms?
EXW stands for Ex Works, an incoterm whereby the buyer of a shipped product pays for the goods when they are delivered to a specified location. FOB, or Free on Board, instead shifts the responsibility of the goods to the buyer as soon as they are loaded onboard the ship.
Who is responsible for EXW?
the buyer
Ex works is a term used in shipping arrangements where the seller is only required to deliver goods at a predetermined location, and the buyer bears responsibility for shipping costs.
Who is responsible for insurance under DAP Incoterms?
Under the Incoterms 2020 rules, DAP means the seller is responsible for all charges and risks in transit until the goods reach their destination, at which point the risk transfers to buyer.
Who pays the freight charges in EXW?
buyers
While deciding on the shipping agreement, buyers should consider the freight fees. The expense is paid by the person who wants the goods transported from one location to another.
What are Incoterms and ex works?
It is a commonly used shipping agreement. In addition to EXW, another ten Incoterms describe the responsibilities between sellers (or shippers) and buyers (or consignees) in terms of the shipping process. Ex Works (EXW) is a type of shipping agreement for international trading, published by the International Chamber of Commerce (ICC).
Are the Incoterms 2010 and 2020 still valid?
The new Incoterms 2020, which were launched earlier this year by the ICC are now in effect. The Incoterms 2010, which you can find in our earlier post here, will still be valid. As long as both parties agree to the terms, they are.
Who is responsible for the cost of ExEx works?
Ex Works places full responsibility for cost and risk with the buyer, as the buyer has to arrange everything. There is no risk and cost for the seller in getting the goods delivered to the buyer. The seller is not even responsible for loading the goods when they are picked up.
Who is responsible for shipping costs on EXW?
According to the EXW terms, sellers are only responsible for making products available at designated locations, and buyers are responsible for shipping costs and risks.