Help required to clarify responsibilities under EXW?
Please may you help me with defining who is the exporter and the responsibilities in the following scenario:
* We manufacture and assemble safety equipment and are based in the UK
* We sell equipment to customer A based in Malaysia on EXW
* The end destination of the equipment is in Malaysia, so we would apply for zero rate VAT
* Customer A has a contract with customer B (also based in Malaysia) and customer B would be arranging the collection of the equipment from our UK premises.
* As customer A is not based in the UK, are we the exporter or is customer A?
I appreciate EXW is a bit of a grey area, and I’m having trouble finding information about this kind of third party exporting.
In this scenario, you are the EXPORTER/SHIPPER, selling your goods to the BUYER (customer A), and you will be releasing the goods to the CONSIGNEE (customer B) under EXW terms.
By using EXW you as the shipper have no risk or obligations other than to present the goods at your warehouse at the buyer’s disposal.
I would suggest, however, that you consider FCA Seller’s Premises. It is essentially the same as EXW in that your risk and obligations are minimal but you have control over the export customs entry. Therefore, you are able to instruct the freight forwarder to show you as the shipper and give you copies of the export entry (as you will contracting them to carry that out on your behalf).
Trust this assist.
If you need any further advice or assistance with any other shipments, please feel free to call us
All the best,
01268 410 211
Many thanks for your response, I’ve just found out that our sales department are quoting on an FCA basis rather than EXW.
Do you ever ship on any other terms? We would be delighted to assist you with these shipments?
Just so you know, we are a freight forwarder, all information you may require will be easily found here: www.agc.as
All the best,