Are you using EXW terms for international trade? While the sellers responsibilities under EXW terms are minimal, improper handling of details can lead to unexpected liabilities. Learn how to ensure smooth delivery of goods and avoid disputes arising from unclear responsibilities. Under these terms, the buyer is responsible for arranging the pickup and transportation of the goods.

In practice, the process and considerations for EXW shipments are as follows:

I. EXW shipping process

Confirm the readiness of the goods:Goods are ready: Ensure the goods have been produced, packaged, and meet customer requirements. Once confirmed, notify the buyer or their designated agent.

Notify the customer or their designated agent:Inform the buyer of the pickup time: Confirm the specific time and location for pickup with the buyer or their designated agent. Provide necessary documents: Typically including commercial invoices, packing lists, product certificates, etc. If the buyer requires additional documents, such as a certificate, the seller should also provide them.It is recommended to verify through the following methods:Handover of goods:

? Loading of goods:
Under EXW terms, the buyer or their agent is responsible for arranging the pickup and transportation of the goods. The seller assists with loading but does not bear the cost (unless otherwise agreed).? Sign-off:
After the goods are loaded, the seller should request the buyer or their agent to sign the delivery note or other handover documents to confirm the goods have been delivered.Provide documents required for customs clearance:

? Customs clearance documents:
Although customs clearance is typically the buyers responsibility under EXW terms, the seller should provide necessary documents to assist the buyer. This includes packing lists, commercial invoices, etc.? VGM (Verified Gross Mass):Export ClearanceIf the goods require it, the buyer or their designated freight forwarder must declare the VGM, and the seller needs to provide the specific weight and volume information of the goods.
II. Common issues and considerationsRegarding signing a letter of guarantee:Maritime Transportation? Overbearing terms in the letter of guarantee:

II. Common issues and precautions

Regarding signing letters of guarantee:
? Letters of guarantee with霸王條款 (unfair terms):Some designated agents may require the seller to sign a so-called Split Bill L/I, which typically contains terms highly unfavorable to the seller, such as holding the seller responsible for any issues. It is advisable to carefully review the terms before signing any L/I and seek legal counsel if necessary. If the terms are unreasonable, the seller may refuse to sign.
? Avoid assuming additional responsibilities:Under EXW terms, the sellers responsibility ends when the goods are handed over to the buyer at the sellers factory, with subsequent transportation responsibilities falling to the buyer. Therefore, the seller should avoid signing documents that exceed their scope of responsibility.

Vessel schedule, SI cutoff, and VGM handling:
?Shipping schedule and VGM:These matters are typically handled by the freight forwarder. The forwarder should coordinate with the buyer and the buyers shipping agent, and the seller generally does not need to be directly involved. However, the seller should provide accurate cargo information (such as piece count, weight, volume, etc.) in advance to facilitate the forwarders VGM declaration.
? Confirm vessel schedule with the customer:Although the forwarder handles these matters, the seller may also choose to proactively confirm the vessel schedule and other important information with the customer to ensure the buyer is aware of the cargo status and timelines.

Handling of LOCAL fees:Under EXW terms, all local logistics costs (such as pickup, transportation, customs clearance, etc.) are typically paid by the buyer or their agent. The seller may request the buyer or their agent to explicitly commit to paying these fees and maintain relevant communication records.

Whether the cooperating forwarder is professional:Based on the information provided, there appear to be issues with the current forwarders services, particularly in communication and responsibility delineation. The seller may consider working with a more professional forwarder to reduce unnecessary complications.

III. Recommendations

Clearly define responsibilities:Under EXW terms, the seller is only responsible for delivery at the factory, with subsequent transportation, insurance, and liabilities borne by the buyer. It is recommended to clarify responsibilities with the buyer or their agent to avoid assuming additional obligations.
Exercise caution before signing:For any documents requiring signature, especially L/Is involving liability, it is advisable to carefully review the terms and negotiate with the buyer to ensure your rights are protected.
Strengthen communication:Although the sellers responsibilities under EXW terms are limited, maintaining good communication with the buyer and their agent is essential for smooth transaction completion.

In summary, while goods handover under EXW terms is relatively straightforward, there are details to pay attention to, particularly in communication and responsibility delineation with the buyer and designated forwarder. If you require further support or professional advice,ZhongShen International Tradeour team is always ready to assist you in expanding your business globally with peace of mind.