EXW Incoterms: A Complete Guide of Ex Works
August 14, 2024
To make global shipping at ease, choosing the proper shipping terms is necessary. Today YQN presents you with a complete guide to EXW Incoterms!
What Is EXW
EXW Meaning: EXW stands for Ex Works and is one of the 11 Incoterms in international trade. Shipping terms “Ex-Works” means when it leaves the factory. Under EXW shipping terms, the seller shall have the goods ready for pick-up at the designated location (usually the seller’s factory, mill, plant, or warehouse).
Who Pays in EXW Shipping
Under Ex Works (EXW), the buyer pays for all charges in the shipping process.
This includes loading charges, delivery to port, export duties and taxes, origin terminal charges, loading on carriage, carriage charges, destination terminal charges, delivery to destination, and import duty and taxes.
When does Risk Pass Under EXW shipping terms
Under Incoterms EXW, the risk passes from the seller to the buyer when the goods are made available at the designated location. The seller is responsible for packaging the goods as specified in the agreement. The buyer is responsible for loading the goods on their transport and everything else necessary to deliver the goods to the final destination.
What EXW Price Means
EXW Price Meaning: Ex-works pricing is a pricing method based on the cost of the goods or products at the factory or manufacturing site. Typically, this price includes all the costs borne by the supplier such as research and development, production, and packaging plus certain profit margin.
Under EXW shipping terms, the buyer needs to pay transportation, insurance and customs fees.
Above is a freight cost breakdown for shipping 6*40HQ from Shanghai to Laem Chabang.
Which is better: EXW or FOB
EXW VS FOB
Want to know more about FOB Incoterms?
Welcome to read our previous articles on FOB Incoterms - A Complete Guide of Free on Board.
Why EXW Is the Best Incoterm
Under EXW terms, the seller’s responsibilities are incredibly low. They only need to make the goods available at the designated place, with no obligation to handle transportation, export customs, or risk during transit.
Sellers typically choose EXW because it minimizes their responsibility and makes the entire shipping process smooth, as almost all the responsibility lies with the buyer.
Conclusion
In summary, Incoterms EXW is an international shipping term that requires the seller to make the goods available at the designated location.
To make global shipping at ease, choosing the proper shipping terms is necessary. YQN’s professionals are proficient in all shipping terms for container shipping from Asia.
If you want more information about EXW (Ex Works), please contact our logistics experts at YQN. Manage your supply chain today!
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