Ex Works Law & Legal Definition
Ex Works is a commonly used term in international sales contracts. Under an ex works sale contract, the seller undertakes to have the goods available for collection by the buyer at the seller’s premises, for instance, factory, warehouse or mine. According to the INCOTERMS 2000, under Ex Works, the seller must provide packaging required for the transport of the goods, at his/her expense. Before the sale is concluded, the seller should also make the buyer aware of the circumstances relating to the transport. The buyer has to make arrangements for cargo, insurance cover, obtaining export licenses and import licenses. The seller will be required, under the INCOTERMS 2000, to render any assistance in obtaining an export license at the buyer’s request, risk and expense. Here, the seller makes the goods available on his own premises and the buyer bears costs for loading on vehicle, transport and insurance.
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