Incoterms 2020: Defining Seller and Buyer Responsibilities
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Key Incoterms and Responsibility Definitions
ExW – Ex Works
The delivery takes place at the seller’s premises. This term represents the minimum obligation for the seller.
- Delivery Location: Seller’s premises.
- Seller's Risk/Cost: The seller will not assume any type of risk.
- Buyer's Risk/Cost: Transport, freight, taxes, and insurance belong entirely to the buyer.
- Governing Law: Laws of the place of the seller’s premises are followed.
- Example: ExW Madrid
FCA – Free Carrier
The seller delivers the goods, prepared for export, to the buyer’s nominated carrier at the specified place. This Incoterm requires specifying the exact location where the delivery will take place.
- Delivery Point: Specified place where the goods are handed to the carrier.
- Cost