Ex Works is the incoterm in which seller deliver the goods to buyer at their loading area, and buyer arrange everything staring from loading the cargo at seller's premises to unloading at buyer's premises at destination.
Seller bears the cost of warehousing, packing
and keeps the goods at their loading area, buyer bears the cost of further
activities, which are loading at seller's premises, export clearance (with
duties if required), primary transportation, origin and destination terminal
handling charges, freight, insurance, import clearance (with duties if
required), transportation to buyer's premises and unloading. At the time of
export clearance, seller's provides required statutory documents and
authorizations.
Delivered at place or DAP is the incoterm where
seller delivers the goods at named place, till that point all risks are lies
with the seller and all risks & responsibilities transferred from
seller to buyer at that point.
Seller bears the cost for maximum activities,
which are warehousing, packing, primary transportation, export clearance (with
duties if required), terminal handling charges at origin, freight, destination
terminal handling charges and the transportation till the final place of
delivery or named place. Buyer bears the cost of import clearance (with duties
if required) and unloading at final place of delivery.
DAP belongs to D group and Ex Works belongs to E
group of incoterms.
Under both incoterms, warehousing and packing are
taken care by seller, under both incoterms import clearance and unloading is
taken care buyer.
Differences:
1. In Ex Works seller hands over the cargo to buyer at seller's premises, but in DAP seller delivers the goods at named place usually at buyer's country.
2. In Ex Works buyer does export clearance with the help of seller (seller provides all necessary documents), in DAP seller does export clearance.
3. In Ex Works buyer pays for the freight but in DAP seller pays for the freight.
4. In Ex Works risk is less for seller and high for buyer but in DAP risk is high for seller and less for buyer.
Incoterms |
EXW |
DAP |
Packaging charges |
Seller |
Seller |
Loading charges |
Buyer |
Seller |
Delivery to port/Place |
Buyer |
Seller |
Export clearance, Duty & taxes |
Buyer |
Seller |
Terminal handling (origin) |
Buyer |
Seller |
Loading on carrier |
Buyer |
Seller |
Freight cost (ocean/air/surface) |
Buyer |
Seller |
Insurance charges |
Buyer |
Seller |
Terminal handling (Destination) |
Buyer |
Seller |
Delivery at destination |
Buyer |
Seller |
Unloading at destination |
Buyer |
Buyer |
Import clearance, Duty & taxes |
Buyer |
Buyer |
Check below for all
11 incoterms:
CIF (Cost Insurance & Freight)
CIP (Carriage & Insurance paid to)
DPU (Delivered at place unloaded) –
This is new incoterm introduced in 2020
1 Comments
Extremely useful information which you have shared here about export data This is a great way to enhance knowledge for us, and also beneficial for us. Thank you for sharing an article like this.
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