What you should know about EXW when shipping goods from China

When buying wholesale from China, there are many questions related to transportation, insurance, customs clearance, and the distribution of risks and costs between the seller and the buyer. In order to simplify these processes, there are Incoterms (International Commercial Terms) rules, which determine the conditions for the supply of goods and the obligations of the parties under the sales contract. In this article, we explain what EXW deliveries are.

What is EXW?

According to Incoterms, EXW (ExWorks) is a trade term that means that the seller must make the goods available to the buyer at his factory, warehouse or office. The buyer picks up the goods himself and organizes transportation to the destination. Simply put, "self-delivery".

Responsibilities of the seller:

• inform the buyer about the possibility of delivery;
• provide goods and a commercial invoice;
• check and hand over the goods at the specified place on the agreed date;
• ensure proper packaging and labeling of goods;
• assistance in the preparation of export documentation is possible.

The seller is not responsible for the subsequent delivery of the goods to the destination or any export formalities.

The buyer is responsible for the goods as soon as they are loaded into the vehicle at the seller's warehouse

Obligations of the buyer:

• pay the price of the goods;
• pick up the cargo from the seller;
• arrange and pay for transportation;
• pay for loading and unloading;
• draw up import/export documentation;
• pay all duties, taxes, insurance.

EXW terms of delivery impose minimal obligations on the seller, while the buyer bears the responsibility for delivery of the goods from China, as well as all costs and risks associated with transportation, insurance and customs clearance.

Advantages and risks of EXW for business

The seller's advantages from EXW are obvious: the absence of risks, liability and additional costs associated with delivery. And what does the buyer get?

Effective control.

With EXW, the buyer has full control over all stages of delivery, including the choice of vehicle, carrier and delivery route. This allows you to optimize logistics and make effective decisions.

Flexibility.

Incoterms EXW terms of delivery allow you, as a buyer, to choose which logistics companies to cooperate with to achieve optimal results.

Cost control.

You control all expenses, independently conclude agreements with logistics intermediaries and carriers. This way you get more transparent prices and clearly understand how much this or that stage of transportation costs.

EXW terms involve more responsibility on the part of the consignee, so it is important that entrepreneurs or intermediaries have experience in shipping and importing

In addition to all the advantages, EXW delivery under Incoterms requires a significant responsibility from the buyer. It is the buyer who bears the risks associated with the transportation of the goods, such as loss, damage or delay in transportation. In addition, the buyer is independently responsible for the preparation of the necessary documents for the export and import of goods, which requires additional efforts and loss of time.

To facilitate the process of transporting goods from China, DiFreight offers its services as a reliable logistics intermediary. Our team of specialists takes care of the smooth delivery of goods on EXW terms from China and takes care of all your troubles in organizing transportation. We will pick up the goods at the seller's warehouse, select the optimal method of transportation, issue all the necessary documentation and deliver the cargo to the destination.