Export with Exworks as terms of Sale

This query is : Resolved

Vaisakh Jagdish (Querist)
Follow

30 December 2010 My client exports goods to its parent company and its associates in Europe and USA. The company exports its goods under ex-works term of sale and the ownership of the goods transfers from the factory gate to the foreign customers. The reat movement and ownership and its shipment is solely done by the buyer and not my client. Also the freight and insurance is also born by the buyer. In short al subsequent risk and ownership transfers to the buyer from factory gate itself.Does the transaction be termed as export.Please help???

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
Follow

27 January 2011 Ex Works (EXW) is an Incoterm. It means that the seller X has the goods ready for collection at his premises (Works, factory, warehouse, plant) on the date agreed upon. The buyer pays all transportation costs and bears all risks for bringing the goods to their final destination. This term requires that the buyer must be able to carry out export formalities in the country of supply, these days almost impossible. Therefore in the vast majority of cases where terms are quoted EXW they actually intend the seller to carry out export formalities which means that the correct term is FCA .

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now