Learning more about Incoterms®2010

According to the International
Chamber of Commerce (ICC)
the first Incoterm – Ex Works
(EXW), at a named place of
delivery – means that “the
seller delivers when he places
the goods at the disposal of the
buyer at the seller’s premises
or another named placed (i.e.
works, factory, warehouse,
etc). The seller does not need
to load the goods on any
collecting vehicle, nor does
it need to clear the goods for
export, where such clearance is
applicable”.
The ICC’s Incoterms®2010
identifies ten obligations
that the buyer might need to
fulfil in terms of Ex Works:
(1) general obligations of
the buyer; (2) licences,
authorisations, security
clearances and other
formalities; (3) contract of
carriage and insurance; (4)
taking delivery; (5) transfer
of risks; (6) allocation of
costs; (7) notices to the seller;
(8) proof of delivery; (9)
inspection of goods; and (10)
assistance with information
and related costs.
The general obligations
of the seller are essentially
the payment of the price as
stipulated in the contract
of sale, and providing any
stipulated documents or their
electronic equivalent.
In respect of licences,
authorisations, security
clearances and other
formalities, the buyer is
required as his own risk and
cost, to obtain such. The buyer
has no obligation with respect
to the contract of carriage, or
to the contract of insurance.
As for taking delivery, the
buyer must take delivery of the
goods when they have been
delivered in accordance with
the contract of sale. As for
the transfer of risks, all risks
of loss or damage subsequent
from the time of delivery are
the buyer’s.
In relation to the
allocation of costs, the
buyer is responsible for all
costs relating to the goods
subsequent to their delivery,
he must settle any additional
costs incurred as a result of the
buyer’s failure to take delivery,
settle any charge of duty with
respect to export, and also
settle any costs incurred by the
seller for assistance provided.
The buyer must, if entitled
by the contract of sale, give
sufficient notice to the seller as
to when and where the goods
must be placed at his disposal.
As for the proof of delivery,
the seller must be provided
with “appropriate evidence”
by the buyer that the latter did
indeed take delivery.
In line with the security
stipulations that have
been incorporated in the
latest revision, the buyer is
responsible for any costs
associated with the inspection
of the goods.
As for the assistance
with respect to information
and related costs, the buyer
must advise the seller of any
security-related requirements.
The cost of such compliance
would, through reimbursement,
be for the buyer’s account.
In next week’s issue we
will provide a summary of Ex
Works (EXW).