Issue 01 . Jan 2019
Ex Works (EXW) is the Incoterms® 2020 rule used to describe the delivery of goods by the seller at their own place of business, generally in their factory, offices or warehouse. Since, under EXW, the seller does not need to load items onto a truck or worry about the freight once it has left their premises, this is the most favourable term for the seller. Once the seller has informed the buyer that the goods for the contract have been identified and set aside, then the delivery is considered to have been made. At this point, the buyer bears the risk and is obliged to pay, even though the goods may still be in the possession and physical control of the seller. Not only that, it is not the seller’s responsibility to load the goods onto the buyer’s collecting means of transport. How would this play out in real life? Will the seller allow the buyer’s transport contractor to bring their own forklift and labour, and allow them to rampage around the seller’s warehouse? What would be the insurance, workplace safety, and other ramifications of this?
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