Obligations of the buyer under EXW
Sellers obligations
When the exporter manufactures goods for the importer, it must fully comply with the relevant provisions of the sales contract signed by both parties. That is, when the exporter delivers the goods, the quality, quantity and other factors of the goods must be consistent with the content of the contract. In addition, the exporter must issue a commercial invoice and other materials.
The exporter must provide full assistance for the smooth customs clearance of the goods. That is, although the customs clearance procedures should be completed by the importer, if the importer needs the assistance of the exporter, the exporter shall not object.
The exporter shall not deliver the goods beyond the time limit specified in the contract between the two parties.
The exporter shall bear all risks and expenses before the delivery of the goods, unless otherwise agreed by both parties.
The exporter is obliged to notify the importer of the exact time and place of delivery before delivery.
The exporter is obliged to properly pack the goods and check the quantity before delivery.
EXW is the abbreviation of EX Works, known as Ex Works (named place). Usually, the exporter has fulfilled the obligation of delivering the goods by placing the goods at the place of business or other designated places (factory, warehouse) for the importer to take delivery; the importer bears all the costs and risks of transporting the goods from the exporters place of business to the destination. Under this trade term, the exporter has the lightest obligation and cost, while the importer has the heaviest responsibility. It is exactly the opposite of the DDP trade term.
Buyers obligations
The importer is obliged to pay the purchase price to the exporter in full and on time.
The importer shall be responsible for the relevant risks and expenses incurred during the customs clearance of the goods.
If the exporter delivers the goods in accordance with the contract, the importer is obliged to take delivery of the goods.
The importer is responsible for all risks and expenses that may arise after the delivery of the goods.
If the time and place of delivery are determined by the importer as agreed by both parties, the importer is obliged to notify the exporter of the specific time and place of delivery within the delivery period.
When the importer has taken possession of the goods, the importer must provide the exporter with relevant documents proving that he has taken possession of the goods.
If the goods must be inspected before shipment, the inspection costs shall be borne by the importer.
If the importer needs the assistance of the exporter to smoothly export the goods and the exporter provides such assistance, the importer is responsible for bearing all relevant costs.
List of Parties Responsible for Costs between Buyers and Sellers under Various Trade Terms
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PSB Record: Shanghai No.31011502009912
