Details of risk transfer delivered by EXW

EXW (Ex Works) is a delivery condition in international trade that means the seller places the goods in its factory or warehouse, and the buyer bears all the costs, risks, and formalities to pick up the goods from the seller and ship them out.

The key risk transfer details for EXW delivery are as follows:

1. Place of Delivery: Under EXW delivery conditions, the Seller is responsible for placing the goods at its factory, warehouse, or other designated place. The Seller’s liability terminates when the goods are placed at the designated place.
2. Expenses: Under EXW delivery conditions, the Seller shall not be obligated to bear any expenses related to the delivery of the goods from the place of place to the destination, including transportation, insurance, customs clearance, etc. All these costs shall be borne by the buyer.
3. Risk Transfer: Under EXW delivery conditions, the title and risk of the goods pass to the Buyer when the seller places the goods at the designated place. Once the goods are placed in the designated place, any loss, damage or risk shall be borne by the buyer.
4. Insurance: Under EXW delivery conditions, the seller has no obligation to purchase insurance for the goods, so the buyer needs to purchase transportation insurance to protect the risks that the goods may encounter during transportation.
5. Delivery of documents: Under EXW delivery conditions, the Seller is responsible for providing the Buyer with the necessary shipping documents so that the Buyer can carry out customs clearance and transportation procedures at the time of taking delivery of the goods.
6. Pick-up of goods: The buyer needs to arrange pick-up, transportation, and customs clearance procedures. The seller is usually not involved in the pick-up and transportation of the goods.
7. Unloading and loading: The Buyer shall bear the costs and liabilities for unloading the goods and for loading the goods onto the means of transport.

In summary, under EXW delivery conditions, the Seller’s liability is limited to placing the goods at the designated place. Once the goods are placed at the location, the buyer is responsible for all costs, risks, and formalities associated with the transportation, insurance, customs clearance, and delivery of the goods. Therefore, both buyers and sellers need to fully understand the details of EXW’s delivery conditions to ensure the smooth running of the transaction and to clarify their respective responsibilities and obligations.

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