Ex works shipping is in some cases on the opposite side of DDP based on incoterms. As we described before in earlier articles DDP (Delivery Duty Paid) services are some services that the seller accepts all duties through sending merchandise to the asked destination, but Ex-works are some services that the buyer is obliged about taking the merchandise to the destination he wants and all costs are by the buyer. One of the important cases for Ex work shipping is that the merchandise that the buyer asked is ready to sending and it will have the exact time of receiving with calculating all options. The other point is that in DDP shipping services it has some fix services but Ex-works shipping services are manually chooses by the buyer. We have different incoterms in the trading services but what is more important is that each of them have some positive and some negative points, for example in Ex works shipping the seller has no obligation after loading your merchandise and all of the risks should be accepted by the buyer, as mentioned DDP services are not like this and the seller accept all risk and insurance costs till the merchandise be available in asking distance.
Comparison of Ex works shipping with some other incoterm’s services
FCA vs Ex works: FCA (Free Carrier) has many same options with Ex works as obligation of buyer but the main difference of it is that the buyer should manage and arrange sending from main country to distance and all sending options are arranged by buyer based on contract and all costs should be paid by the buyer.
FAS vs Ex works: FAS (Free Alongside Ship) means all the risks are accepted by the buyer from the moment the merchandise loading out of the company. The similarities between Ex works and FAS are that every cost and risks obliged by the buyer, but the difference is in some cases in Ex works the buyer asked the seller to send merchandise when they are ready, but in FAS normally the merchandise is ready to send.
CFR vs Ex works: CFR (Cost and Freight) means the costs of sending goods to the port is by the seller, but the risks of damages are by the buyer. The main difference between CFR and Ex works shipping is that in Ex works there is no payment by the seller.
What you should know more about Ex works shipping
- The packing services and safety of boxes is one of few obligations of the seller.
- Usually seller accept to sending the merchandise to the nearest port and you should search to find the best and nearest port available to manage your budget.
- After getting goods all the risks and obligations are due to the buyer.
- The buyer can have a special agent in companies’ country to manage all happenings and doing the documentation, normally having agents will decrease your cost very much and will have fewer risks.
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