EXW Incoterms 2020: delivery terms and meaning · Контракт.Онлайн
Incoterms 2020 · group E — departure

EXW — Ex Works: delivery terms under Incoterms 2020

The seller prepares the goods at its warehouse; under the Incoterms rules the buyer does the rest. But on export from Russia the declarant is the seller (Article 83 of the EAEU Customs Code). The EXW term is already selected in the generator

What you are drafting
Import of goods on EXW termsExport of goods on EXW terms DOCX
КОНТРАКТCONTRACTMoscow
1. Предмет Контракта 2. Стоимость Контракта 3. Условия поставки 4. Условия оплаты 5. Гарантии и качество 6. Ответственность сторон 7. Арбитраж
1. Subject of the Contract 2. Cost of Contract 3. Terms of the Delivery 4. Terms of the Payment 5. Guarantee and Quality 6. Liability of the Parties 7. Arbitration
ПРОДАВЕЦ / THE SELLERПОКУПАТЕЛЬ / THE BUYER
ПРИЛОЖЕНИЕ № 1 к КОНТРАКТУANNEX No. 1 to CONTRACTСПЕЦИФИКАЦИЯ · SPECIFICATION
На поставку Товаров, на общую сумму
# Описание / Description ТН ВЭД / HS CODE Ед. изм. / Unit of meas. Кол-во / Q-ty Цена / Price Сумма / Total 1 2
Прочие условия / Other terms Гарантия / Warranty Документация / Documentation Условия поставки / Delivery terms Порядок оплаты / Terms of payment Период оказания услуг / Period of provision of services Срок возврата оплаты / Period of refund of payment
ПРОДАВЕЦ / THE SELLERПОКУПАТЕЛЬ / THE BUYER
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Fill in: Import of goods Fill in: Export of goods
E
group of terms
Any
mode of transport
Russian seller
declarant on export from Russia
Buyer
pays for carriage
Buyer
import duties

What the draft already fills

Parties, documents and specifics for every deal scheme

Import of goods on EXW terms

PartiesBuyer — Russia, seller — foreign company
Delivery termEXW + place of shipment
DocumentsInvoice, packing list, declaration, waybill
SpecificsHS code · Supplier's SWIFT details

Export of goods on EXW terms

PartiesSeller — Russia, buyer — foreign company
Delivery termEXW + place of shipment
DocumentsInvoice, packing list, declaration, waybill
SpecificsAdvance refund on cancellation · HS code in the specification

How to write EXW into the contract

The EXW term is passed into the form from this page

1
1. Deal type

Import or export of goods. The parties, the goods with HS codes and the prices go into the same form; the Russian party's details are filled in from its INN (tax ID).

2
2. EXW and place

The EXW term is already selected. Enter the place of shipment: the seller's warehouse or plant with its address. The delivery term text in the specification will be assembled for EXW.

3
3. Preview and DOCX

The whole document is visible before payment: the English and Russian columns, the specification, the delivery term. After payment you get the DOCX.

A contract on EXW terms

An Incoterms rule applies to the supply of goods — import or export

Who does what under EXW

Risk passes when the goods are placed at the buyer's disposal at the named place, not loaded

Obligation
Seller
Buyer
Loading at the place of dispatch
—
Yes
Export customs clearance
—
Yes
Main carriage
—
Yes
Cargo insurance
—
Optional: the risk in transit is the buyer's
Unloading at the destination
—
Yes
Import clearance, duties and taxes
—
Yes

EXW in the contract: what to specify

A delivery term without an exact place and without the conditions around it does not work well

✓Code and edition: “EXW [place], Incoterms® 2020” — without the year it is unclear which rules apply
✓Exact place of shipment: the seller's warehouse or plant with its address
✓Mode of transport: any
✓Deadline for notifying that the goods are ready for shipment
✓Transfer of title — Incoterms does not govern it; in the contract it is tied to the moment of delivery
✓Insurance: Incoterms imposes no obligation; decide for yourselves who insures
✓Payment procedure and the deadline for refunding the advance if there is no delivery
✓Documents the seller hands over: invoice, packing list, transport document

Questions about the EXW term

Meaning, risk, costs, title

EXW stands for Ex Works. The seller prepares the goods at its warehouse, and the buyer does everything else: loads them, takes them away, and clears export and import customs. Risk passes when the goods are placed at the buyer's disposal at the named place, not loaded. On export from Russia the export declaration is still filed by the Russian seller — subparagraph 1 of paragraph 1 of Article 83 of the EAEU Customs Code.
Under the Incoterms rules, with EXW the seller neither loads the goods nor clears them for export; with FCA it clears export customs and, if the place of delivery is its own premises, also loads the goods onto the buyer's means of transport. Under both terms the main carriage and insurance are paid by the buyer. On export from Russia the declarant is the Russian seller in any case, so FCA describes more accurately who does what.
The buyer. The seller only places the goods at the buyer's disposal at the named place and is not obliged to load them onto the vehicle. If in fact the seller does the loading, the explanatory notes to Incoterms 2020 indicate that the loading risk may lie with the buyer — the International Chamber of Commerce advises agreeing in advance who bears it, and a buyer who wants to avoid it should consider FCA.
Incoterms does not govern the transfer of title — the rules deal only with delivery, risk and costs. The moment title passes is set by the contract or the applicable law; under Russian law (Article 223 of the Russian Civil Code) title arises from the moment the thing is handed over, unless otherwise provided by law or the contract. In our contract title passes together with risk — at the moment of delivery under EXW.
The term code, the exact place of shipment and the edition of the rules, for example: EXW Guangzhou, Seller's warehouse, 18 Huangpu Road, Incoterms® 2020. Under Article 1211(6) of the Russian Civil Code, if the contract uses a trade term accepted in international commerce, the parties are deemed to have agreed on the customs that the term denotes — so it is better to name the edition explicitly.

A contract on EXW terms — 2 990 ₽

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✓ DOCX · Word / LibreOffice
✓ Bilingual EN/RU
✓ 173-FZ · CISG · Incoterms 2020
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per document
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EXW Incoterms 2020 — delivery terms

EXW in simple terms

EXW gives the seller the minimum of obligations and the buyer the maximum. Under the Incoterms rules the buyer takes the goods away itself and clears export customs in the seller's country, but on export from the EAEU the declarant in a deal with a foreign party can only be a person of an EAEU member state (subparagraph 1 of paragraph 1 of Article 83 of the EAEU Customs Code) — that is, the Russian seller. For such cases, where the buyer cannot carry out export formalities, the Incoterms 2020 explanatory notes recommend FCA.

How EXW is written in our contract

The delivery term is set out in Annex No. 1 (Specification) in English and Russian. The English column for this term:
EXW [place]
Delivery and transfer of risk: The Seller has fulfilled its delivery obligation when it places the Goods at the Buyer's disposal at the named place ([place]), not loaded on any collecting vehicle. The risk of loss of or damage to the Goods and the title to the Goods pass from the Seller to the Buyer at that moment.
Costs: The Seller bears the costs until the Goods are placed at the Buyer's disposal. The Buyer bears all subsequent costs, including loading, main carriage and insurance.
Customs clearance: export and import clearance, duties and taxes are the Buyer's obligation. At the Buyer's request, cost and risk the Seller renders assistance in obtaining the required documents.
On export from Russia the export declaration is filed by the seller as a party to the deal — worth bearing in mind when choosing EXW.

EXW and customs value on import

When goods are imported into Russia under EXW, the carriage to the border is paid by the buyer, and these costs are not included in the price of the goods. Under Article 40 of the EAEU Customs Code, the costs of carriage to the place of arrival in the customs territory of the EAEU, as well as loading, unloading, transshipment and insurance in connection with that carriage, are added to the price when the customs value is calculated. So the carrier's and insurer's invoices up to the border will be needed for the declaration.

All terms: Incoterms 2020 · FCA · FAS · FOB · CPT · CIP · CFR · CIF · DAP · DPU · DDP. See also: import contract, export contract.