Ex Works (EXW) is an Incoterm that places the maximum responsibility on the buyer. In an EXW transaction, the seller’s obligation is essentially limited to ensuring that the goods are ready for collection by the buyer. The point of collection could be a warehouse, showroom or other agreed point of collection. The buyer bears all the costs and risks associated with transportation, including loading the goods onto the vehicle, freight, insurance, unloading at the destination, and any customs duties or taxes.

 In a Delivered Duty Paid (DDP) transaction, the seller is responsible for delivering the goods to the buyer’s named place of destination, paying for all costs including transportation, customs duties, and taxes. The seller bears the maximum risks and responsibilities associated with the international shipment of goods. The buyer’s exposure to risk only commences at the point of delivery of goods to the port of destination. If it can be afforded, it is the least risk option for the buyer.

 As we close this mini series it is my hope that the discussion can be expanded by colleagues by sharing experiences.