Trade Term: EXW – Ex Works | Bofeng Logistics

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This rule is independent of the mode of transport chosen by the parties, and is applicable even if the parties choose multiple modes of transport. This rule is more suitable for domestic transactions; for international transactions, the FCA[1] "Free Carrier (…named place)" rule is preferable. "Ex Works (…named place)" means that the seller fulfills its obligation to deliver when it places the goods at the disposal of the buyer at the seller's premises or another named place (e.g., workshop (emphasizing a manufacturing production site), factory (manufacturing site), or warehouse, etc.). The seller does not need to load the goods onto any collecting vehicle, nor does the seller need to clear the goods for export if such clearance is applicable. The parties should specify as clearly as possible the point within the named place of delivery, as the costs and risks up to that point are borne by the seller. The buyer must bear all costs and risks involved in taking over the goods from the agreed point at the named place. EXW represents the minimum obligation for the seller. It should be used with the following caveats: The seller has no obligation to load the goods, even though in practice the seller may be in a better position to do so. If the seller does load the goods, it does so at the buyer's risk and cost. If the seller is in a better position to load the goods, it is usually more appropriate to use FCA, which obliges the seller to load the goods and bear the related costs and risks. The buyer should be aware that when using EXW, the seller only provides assistance to the buyer in obtaining an export license upon request (more in line with the term's characteristics): (However,) the seller has no obligation to proactively (emphasizing the minimum obligation, incorporating the inherent meaning of the 2010 version) obtain an export clearance. Therefore, if the buyer cannot directly or indirectly arrange for export clearance, this term should not be used. The buyer bears a limited obligation to provide the seller with information regarding the export of the goods. However, the seller may require this information for purposes such as tax declaration, customs declaration, etc.

A THE SELLER’S OBLIGATIONS	B THE BUYER’S OBLIGATIONS
A1 General obligations of the seller The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence that may be required by the contract to show conformity of the goods. Any document referred to in A1-A10 may be in tangible form or in electronic record or procedure as agreed or customary between the parties.	B1 General obligations of the buyer The buyer must pay the price of the goods as provided in the contract of sale. Any document referred to in B1-B10 may be in an equivalent electronic record or procedure if agreed or customary between the parties.
A2 Licences, authorizations, security clearances and other formalities Where applicable, the seller must assist the buyer, at the buyer’s request, risk and cost, in obtaining any export licence or other official authorization necessary for the export of the goods. At the buyer’s request, risk and cost, and where applicable, the seller must provide any information in the seller's possession that is required for the security clearances of the goods.	B2 Licences, authorizations, security clearances and other formalities Where applicable, the buyer must obtain, at its own risk and cost, any export and import licence or other official authorization and carry out all customs formalities for the export of the goods.
A3 Contracts of carriage and insurance a) Contract of carriage The seller has no obligation to make a contract of carriage for the buyer. b) Contract of insurance The seller has no obligation to make a contract of insurance for the buyer. However, when requested by the buyer at the buyer's risk and (any) cost, the seller must provide the buyer with information that the buyer needs for obtaining insurance.	B3 Contracts of carriage and insurance a) Contract of carriage The buyer has no obligation to make a contract of carriage for the seller. b) Contract of insurance The buyer has no obligation to make a contract of insurance for the seller.
A4 Delivery The seller must place the goods at the disposal of the buyer at the agreed point, if any, at the named place of delivery, not loaded on any collecting vehicle. If no specific point has been agreed within the named place of delivery, and if there are several points available, the seller may select the point that most suits its purpose. The seller must deliver the goods at the agreed time or within the agreed period.	B4 Taking delivery The buyer must take delivery of the goods when the seller has delivered them in accordance with A4 and A7.
A5 Transfer of risks The seller bears all risks of loss of or damage to the goods until they have been delivered in accordance with A4, except as provided for in B5.	B5 Transfer of risks The buyer bears all risks of loss of or damage to the goods from the time they have been delivered in accordance with A4. If the buyer fails to give notice in accordance with B7, then the buyer bears all risks of loss of or damage to the goods from the agreed date or the expiry date of the agreed period for delivery, provided that the goods have been clearly identified as the contract goods.
A6 Allocation of costs The seller must, subject to the provisions of B6, pay all costs relating to the goods until such time as they have been delivered in accordance with A4.	B6 Allocation of costs The buyer must pay: all costs relating to the goods from the time they have been delivered in accordance with A4; any additional costs incurred by failing either to take delivery of the goods when they have been placed at the buyer’s disposal, or to give appropriate notice in accordance with B7, provided that the goods have been clearly appropriated to the contract; where applicable, all duties, taxes and other charges payable upon export of the goods, and the costs for customs formalities; all costs and charges incurred by the seller in rendering assistance in accordance with A2.
A7 Notice to the buyer The seller must give the buyer sufficient notice as to when the goods will be placed at the buyer's disposal, enabling the buyer to take delivery.	B7 Notice to the seller The buyer must, whenever it is entitled to determine the time for taking delivery of the goods and/or the place of taking delivery within the agreed period, give the seller sufficient notice thereof.
A8 Proof of delivery The seller has no obligation.	B8 Proof of delivery The buyer must provide the seller with appropriate evidence of having taken delivery.
A9 Inspection, packing, marking The seller must pay the costs of checking operations (such as checking quality, measuring, weighing, counting) necessary for the purpose of delivering the goods in accordance with A4. The seller must provide at its own cost packaging (unless it is customary for the trade to ship the goods of the description described in the contract without packaging) which is necessary for the carriage of the goods, unless the buyer has informed the seller of specific packaging requirements before the contract of sale is concluded. Packaging is to be marked appropriately.	B9 Inspection of goods The buyer must pay the costs of any mandatory pre-shipment inspection, including inspection mandated by the authorities of the country of export.
A10 Assistance with information and related costs The seller must, where appropriate, render the buyer, at the buyer’s request, risk and cost, timely assistance in obtaining any documents and information needed by the buyer for the export and/or import of the goods and for their transport to the final destination, including any information relating to security.	B10 Assistance with information and related costs The buyer must advise the seller promptly of any security information requirements it has in order for the seller to be able to comply with A10. The buyer must reimburse the seller for all costs and charges incurred by the seller in providing information or documents as requested in A10.

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