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TRADE TERMS

Summary of international delivery terms and trade definitions.

Important Notice

This page is for informational purposes only. For accurate and current information, please refer to official regulations and INCOTERMS® rules.

EXW — Ex Works

"Ex Works" means that the seller delivers when placing the goods at the disposal of the buyer at the seller's premises (factory, warehouse, etc.) or another named place. The seller does not need to load the goods on any collecting vehicle, nor does it need to clear the goods for export, where such clearance is applicable. The buyer bears all costs and risks involved in taking the goods from the seller's premises to the desired destination. This term represents the minimum obligation for the seller. This term should not be used when the buyer cannot carry out directly or indirectly the export formalities. In such circumstances, the FCA term should be used.

A. THE SELLER'S OBLIGATIONS

  • A.1 Provision of goods in conformity with the contract: The seller must provide the goods and the commercial invoice, or its equivalent electronic message, in conformity with the contract of sale and any other evidence of conformity required by the contract.
  • A.2 Licences, authorizations and formalities: Where applicable, the seller must render to the buyer, at the buyer's request, risk and expense, every assistance in obtaining any export licence or other official authorization necessary for the export of the goods.
  • A.3 Contracts of carriage and insurance: a) Contract of carriage: No obligation. b) Contract of insurance: No obligation.
  • A.4 Delivery: The seller must place the goods at the disposal of the buyer at the named place of delivery, at the date or within the agreed period. If no specific point has been agreed within the named place of delivery, the seller may select the point that best suits its purpose.
  • A.5 Transfer of risks: The seller must, subject to the provisions of B.5, bear all risks of loss of or damage to the goods until they have been placed at the disposal of the buyer in accordance with A.4.
  • A.6 Division of costs: The seller must, subject to the provisions of B.6, pay all costs relating to the goods until they have been placed at the disposal of the buyer in accordance with A.4.
  • A.7 Notice to the buyer: The seller must give the buyer sufficient notice of when and where the goods will be placed at its disposal.
  • A.8 Proof of delivery/documents: No obligation.
  • A.9 Checking – packaging – marking: The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) which are necessary for the purpose of placing the goods at the buyer's disposal. The seller must provide, at its own expense, packaging required for the transport of the goods, unless it is usual for the particular trade to transport the type of goods sold unpackaged. Packaging is to be marked appropriately.
  • A.10 Other obligations: The seller must render to the buyer, at the buyer's request, risk and expense, every assistance in obtaining any documents or equivalent electronic messages issued or transmitted in the country of delivery and/or origin which the buyer may require for the import of the goods and their passage through any country. The seller must provide the buyer, upon request, with the necessary information for procuring insurance.

B. THE BUYER'S OBLIGATIONS

  • B.1 Payment of the price: The buyer must pay the price as provided in the contract of sale.
  • B.2 Licences, authorizations and formalities: The buyer must obtain, at its own risk and expense, any export and import licence or other official authorization and carry out all customs formalities necessary for the export of the goods, and for their import and for their passage through any country.
  • B.3 Contracts of carriage: No obligation.
  • B.4 Taking delivery: The buyer must take delivery of the goods when they have been placed at its disposal in accordance with A.4.
  • B.5 Transfer of risks: The buyer must bear all risks of loss of or damage to the goods from the time they have been placed at its disposal in accordance with A.4. If the buyer fails to give notice in accordance with B.7, it must bear all risks of loss of or damage to the goods from the agreed date or the expiry date of the agreed period for taking delivery, provided that the goods have been duly appropriated to the contract.
  • B.6 Division of costs: The buyer must pay all costs relating to the goods from the time they have been placed at its disposal in accordance with A.4. The buyer must pay any additional costs incurred, either because it has failed to take delivery of the goods when they have been placed at its disposal, or because it has failed to give appropriate notice in accordance with B.7, provided that the goods have been duly appropriated to the contract. The buyer must pay all duties, taxes and other charges, as well as the costs of carrying out customs formalities payable upon export and import of the goods and for their passage through any country. The buyer must reimburse all costs and charges incurred by the seller in rendering assistance in accordance with A.2.
  • B.7 Notice to the seller: The buyer must, whenever it is entitled to determine the time within an agreed period and/or the point of taking delivery within the named place, give the seller sufficient notice thereof.
  • B.8 Proof of delivery/documents: The buyer must provide the seller with appropriate evidence of having taken delivery.
  • B.9 Inspection of goods: The buyer must pay the costs of any pre-shipment inspection, except when such inspection is mandated by the authorities of the country of export.
  • B.10 Other obligations: The buyer must pay all costs and charges incurred in obtaining the documents or equivalent electronic messages mentioned in A.10, and reimburse those incurred by the seller in rendering its assistance in accordance therewith.