Ex Work Trade Term in Business Nature

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When an international trade is using Ex Work trade term, buyer arranges carriage from seller's premises. Both seller and buyer should understand about this condition.

But, in business practice, sometimes there is a little bit different from. One shipment is called Ex Work, but, why forwarder ask a shipper to send the goods to their warehouse? It's really happened.

Ex Work as like as door to door service usually a courier use. All the cost and risk is to be buyer's responsibility. Seller provides the goods in seller's warehouse only, make sure the cargo ready at a certain time promised or agreed.

So that in this term shipper or seller provides only Bill of Lading, Invoice, and Packing List, the Insurance for the goods is not seller's responsibility. If the goods is loss, or is damage in an accident, for instance, all those risk is not seller's responsibility. All the risks are to be buyer's responsibility, instead.

When buyer and shipper are preparing a sales contract, both parties have to understand well the term and condition.

The Ex Work term in Italy is commonly use. When seller are willing to pay the freight cost, it means Ex Work trade term, instead of FOB. I have ever handled a shipment from Italy at the first time. Usually I decide FOB term for by sea shipment mode with a little volume. I didn't know at that time the business nature there. I choose a forwarder, and asked them to check all conditions and all the costs would be. The forwarder reported to me that the trade term was Ex Work. So that you should be careful and understand the business nature, too.