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Ex Works (EXW) Explained: Incoterms

Ex works (EXW) is an international trade term where the seller makes a product available at a designated location and the buyer is responsible for transport costs. Once the buyer takes possession of the goods, they are responsible for loading, transport, customs, and other risks. Ex works is one of the 11 standardized Incoterms published by the International Chamber of Commerce that define responsibilities for costs and risks in international trade. For example, if Company A buys printers from Company B for $4,000 EXW, Company B makes the printers available but Company A pays $200 for shipping. To save $30, Company A finds a third party shipper for $170 instead.

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Santiago Lozano
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101 views9 pages

Ex Works (EXW) Explained: Incoterms

Ex works (EXW) is an international trade term where the seller makes a product available at a designated location and the buyer is responsible for transport costs. Once the buyer takes possession of the goods, they are responsible for loading, transport, customs, and other risks. Ex works is one of the 11 standardized Incoterms published by the International Chamber of Commerce that define responsibilities for costs and risks in international trade. For example, if Company A buys printers from Company B for $4,000 EXW, Company B makes the printers available but Company A pays $200 for shipping. To save $30, Company A finds a third party shipper for $170 instead.

Uploaded by

Santiago Lozano
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

EX WORKS 01

Santiago Lozano Pardo


International Logistics
2022-2
02
International
Trade Term
That describes when a seller makes a

International trade term


product available at a designated location,
and the buyer of the product must cover
the transport costs.
03
What is
Incoterms?
A set of standardized
international trade terms that
are published by the
International Chamber of
Current Incoterms

Commerce.
KEY TAKEAWAYS 04

Ex works (EXW) is a Once buyers have their Ex works is an Incoterms


shipping goods, they are (International
arrangement in responsible for other Commercial Terms), one
which a seller makes risks, such as loading the of 11 standardized

KEY TAKEAWAYS
a product available at goods onto trucks, international trade terms
a specific location, transferring them to a that are published by the
but the buyer has to ship or plane, and International Chamber of
pay the transport meeting customs Commerce.
costs. regulations.

05
Understanding Ex
Works

Understanding Ex Works (EXW)


Ex works, as a contract option, is
particularly good for the seller and not
so good for the buyer.

06 40

30
Obligation?
With ex works, the seller can load the
20
goods on the buyer's designated
method of transport, but is not
required to do so; all the seller is
10 required to do is make the product
available at a selected location, while
the buyer pays for transport.
0
Item 1 Item 2 Item 3 Item 4 Item 5
Important
07
SPECIAL
CONSIDERATIONS
The Incoterms aren't current contracts
and don't exceed the governing law in
their jurisdiction. Incoterms can be
modified by explicit clauses in a trade
contract..
Example of Ex Works 08

Example of Ex Works
For example, suppose company A has priced a pair of printers from
company B at $4,000, with an ex works shipping cost of $200. To
save money, company A finds a third-party shipper that will deliver
them the printers for $170. So to save the $30 on shipping, they
make a deal with company B That is ex works

10

Thank you very


much for listening.

Ex Works - Incoterms

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