Many businesses have legacy contracts for distribution and shipping that carry over Incoterms® and shipping obligations that just don’t make sense. Using Ex Works, EXW, is one of them.

Under EXW, the Seller can make the product available in any manner that “best suits their purpose”… this could include simply placing it on a loading dock outside regardless of weather conditions, and they are done. Risk transfer to the Buyer has happened.

If the Buyer does not clarify or is unaware that this is happening, they could be in for quite the surprise to find out they are liable for any damage while the product was sitting there.

It’s important that all staff members that touch the importing or exporting process in a business understand Incoterms® and how to use them correctly. Consider conducting a virtual Exportspark Incoterms® refresher course for your company today!