Ex-works definitions
| Word backwards | skrow-xe |
|---|---|
| Part of speech | Ex-works is an adverbial phrase. |
| Syllabic division | ex-works: ex-works |
| Plural | The plural form of "ex-works" is "ex-works" as it is an unchanged compound noun. |
| Total letters | 7 |
| Vogais (2) | e,o |
| Consonants (5) | x,w,r,k,s |
When it comes to international trade and shipping jargon, Ex-Works is a term that often comes up. This term, often abbreviated as EXW, is crucial for understanding the distribution of responsibilities and costs between buyers and sellers in a transaction.
What is Ex-Works?
Ex-Works is an international trade term that signifies the seller's responsibility ends as soon as the goods are made available for pick up at their location. This means that the buyer is responsible for all transportation costs, risks, and insurance from that point onwards. Essentially, the seller's obligation is to make the goods available at their premises, and the buyer is responsible for everything else.
Key Points of Ex-Works
Under an Ex-Works agreement, the buyer bears all the risks and costs once the goods are available at the seller's premises. This includes loading the goods onto the buyer's chosen form of transport, dealing with customs clearance, and arranging transportation to the final destination. The seller doesn't have any obligations beyond making the goods ready for pick up.
Benefits of Ex-Works
For sellers, Ex-Works is advantageous as they have minimal responsibility once the goods are ready for collection. This reduces the seller's risk and allows for more straightforward transactions. Buyers benefit from Ex-Works because they have more control over the shipping process and can choose the most cost-effective means of transportation and logistics.
In conclusion, Ex-Works is an essential international trade term that delineates the division of responsibilities between buyers and sellers. Understanding Ex-Works is crucial for ensuring smooth transactions and efficient logistics in the world of global trade.
Ex-works Examples
- The buyer is responsible for transportation and insurance costs from the moment the goods are picked up ex-works.
- The seller quoted the price as ex-works, meaning that the buyer must arrange and pay for all transportation from the seller's location.
- The ex-works price does not include any fees for export customs clearance or import duties.
- When purchasing goods ex-works, the buyer takes on the risk and responsibility for the goods as soon as they leave the seller's premises.
- Ex-works is often used in international trade to indicate where the seller's obligation ends and the buyer's begins.
- The ex-works arrangement allows the seller to avoid transportation costs and logistics, passing them on to the buyer instead.
- Ex-works terms are common in situations where the buyer is more experienced in handling transportation and customs procedures.
- The ex-works price is usually lower than prices that include additional services like freight and insurance.
- Buyers prefer ex-works terms when they have more control over the shipment and can choose their preferred carriers.
- The seller must provide the necessary documents such as the invoice and packing list for goods sold ex-works.