The Incoterm EXW stands for ‘Ex Works’. It means that the seller sells their goods ex works. This international trade clause is also known as a collection clause (Group E).
The EXW clause only specifies the seller's minimum obligation to make the products available for collection at the designated location. The seller does not incur any transport costs. Loading and customs clearance for export are also not the seller's responsibility. The goods only need to be packaged and labelled.
- In the case of international sales, the EXW clause is almost always unsuitable. In such cases, it is better to choose FCA – Free Carrier.
- Remember that when calculating the statistical value, the associated costs up to the EU external border must be added to the value of the goods.
EXW leaves important obligations entirely to the buyer: the export declaration including all permits and documents, loading at the place of collection and securing of goods, freight contract, etc. The commercial invoice should be taxed as the sale is carried out within the country, and the seller has no involvement with the export declaration.
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