“Ex Works” is an Incoterm like “Free on Board” (FOB) and “Free Carrier” (FCA), which are methods of shipping that can differ drastically from Ex Works. The main difference between Ex Works and FOB is that with FOB, the seller is responsible for the goods up until they reach th...
An incoterm can also determine who has control over the decisions made during the various phases of shipment. According to some terms, the buyer may be able to choose thefreight forwarder. Another term can give this right to the seller. It is important to note, however, that the responsibil...
Ex works (EXW) is an international trade term that describes when a seller makes a product available at a designated location, and the buyer of the product must cover the transport costs. Ex works (EXW) is one of the 11 currentIncoterms(International Commercial Terms), a set of standardized...
Ex works (EXW) is an international trade term that describes when a seller makes a product available at a designated location, and the buyer of the product must cover the transport costs. Ex works (EXW) is one of the 11 current Incoterms (International Commercial Terms), a set of standard...
Another advantage is if buyers wish to hide who their suppliers are. They can ship under an EXW incoterm, and use a differently named exporter on the shipping documents. When looking at the cost to purchase products, EXW is usually going to be the least expensive option. There are some in...
What Do EXW and FOB Stand for? 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 ...
Summary: supplier assumes all cost, responsibility, and risk until goods are delivered to the buyer. This is the only incoterm in which the supplier is responsible for import clearance and taxes and duties; the buyer only pays for the cost of the goods themselves ...
The seller is responsible for arranging and paying for this insurance to cover the buyer’s risk during transit. However, the transfer of risk from the seller to the buyer still occurs once the goods are loaded onto the ship. How to choose the right incoterm for your transaction Consi...
The Incoterm DAT is getting a name change. DAT stood for Delivered at Terminal. The problem with the Incoterm as it stood is that goods aren’t always delivered at the terminal. The seller and buyer may decide on a different delivery location. Therefore, the name is being changed to DPU...
Essentially, once the cargo has been loaded onto the ship at port, the buyer is responsible for the cost and logistical planning for the rest of the journey. FOB is Not the Only Incoterm: Learn About EXW Our customers sometimes choose to use the EXW Incoterm, so let’s talk about what...