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Today we’re going to talk about a new Incoterm known as Ex Works and its meaning in business. Want to learn more about it? Let’s dive in.Just like Free On Board or DDP, Ex Works is another international trade clause, used in transactions of buying and selling items between companies from different countries.But what is the true meaning of Ex Works or how does this type of incoterm affect? Well, it regulates any operation in which the supplier will be released from the obligation of transporting the goods in any of its stages, either during land, sea, air, or inland transportation.Thus, the seller will only be obliged to deliver all the goods in their own warehouse and will be free from any risk of damage or loss of their merchandise, transferring that responsibility to the buyer.Therefore, the central meaning of the Ex Works incoterm boils down to the buyer being responsible for covering any subsequent costs after the delivery of the purchased goods. Transport, freight, unloading, paperwork, etc. will be the responsibility of the buyer, not the seller.As you can see, Free On Board will often be more beneficial for the buyer, while the Ex Works incoterm favors the seller.Each of them will regulate international transactions, and it is important to consider that the existence of one or the other will modify the behavior pattern during the sale.Are many unfamiliar terms and words crowding your mind and preventing you from carrying out the importation you desire? At Bull Importer, we work with the aim of advising you at all times, and knowing which of the alternatives may be most favorable for you.Feel free to consult us to ensure that your transactions are a complete success.
