The seller is responsible for any export clearance formalities and costs, and the risk of loss or damage transfers to the buyer when delivery has been completed under (1) or (2) above, depending on the agreed named place of delivery.
Where buyer and seller are considering using EXW for a sale involving export, they may do better to use FCA option (1), since the FCA seller is responsible for export clearance of the goods as well as the loading of the goods onto the buyer’s collecting vehicle.
When an Incoterms® rule is included in a contract of sale, it creates legal obligations for the buyer and seller, which can have costly implications. Therefore, it is important that traders read and understand the precise wording of the Incoterms® rules carefully and choose the rule to include in their sale contract thoughtfully. For additional information and resources on the Incoterms® rules, and to purchase the full text of the Incoterms® 2020 rules, visit the ICC website.
Learn more about the eleven existing Incoterms® rules and what they mean for your shipping business.
Whether you’re a seasoned supply chain expert or this is your first time just starting out, we’re here to help.
Every day we move ocean freight across 2,300+ lanes. So if you're nervous about going ocean, don't sweat it.