Dünkü yazımda belirttiğim üzere bugünden itibaren Incoterms 2010’un tek tek açıklamalarını anlatmaya çalışacağım. Şu ana kadar blogumu Türkçe tutmuştum ama gerek bu konulara İngilizce olarak daha hakim olmam, gerekse belki yabancı takipçilerimde olabilir onlarda anlasınlar diye 🙂 bu posttan sonra blogumu İngilizce olarak sürdüreceğim (En azından Incoterms kısımları İngilizce olacak).
Alright, dear my followers ! From now on I will write my blog in English. Until now I always wrote in Turkish, but this topic, I think, is very important in international trade arena. Thus, I decided to continue my blog in English (At least until I finish by explaining Incoterms, it will be all English).
Let’s get started now 🙂 The first Incoterm that I will explain tonight is Ex Works (EXW). I will try to explain each Incoterms in terms of cost, risks, internal carriage,main carriage and insurance.
First of all, we can easily say that EXW is the easiest term for exporter. This is because of the fact that importer buys goods from the exporter’s factory. The main responsibility of the exporter is to prepare the goods in his facility.
On the other hand, this term is the hardest one for the importer since he needs to take care all steps from the exporter’s country until his own land.
When we analyze EXW in terms of cost, we can say that exporter has only production costs. He does not have any other cost unless he agrees with the importer.(such costs could be loading the goods to the truck to transport them to the port, packaging the goods, providing the security service for the goods etc.). The costs transfer from the exporter to the importer when the goods are made available to the importer at exporter’s “named place of delivery” as unloaded way.
The other aspect is risk. Exporter has the least risks in this term. Basically, all the risks transfer from the exporter to the importer when the goods are made available to the importer at exporter’s “named place of delivery”. This is similar with the costs.
Another issue is inland transportation. What I mean by inland transportation is this, transportation of the goods to the port. In this type of Incoterm, importer is responsible for inland transportation. In other words, the importer must take care all the goods and make them transported to the port of loading. In addition, the importer is responsible for any problems that could occur during this transportation process.
The other two concepts are also similar with those things above. Insurance and the main transportation issues are made by the importer. He is responsible for all stuffs until he takes those goods to his factory.
Two small information: The importer is also responsible for the customs clearance in both countries. EXW can be used for all modes of transportation.
Now, after expalining the details of EXW, I would like to give information about how we can use this term. We can use this term in two conditions;
1– If we are monopoly of the good.
Then, we can insist that the importer has to accept to buy our products with EXW.
2– If the importer already buys another products in the same country of exporter’s, he can suggest to exporter that he wants EXW since he wants to take advantage of consolidation.
These are the information that I would like to share with you about EXW tonight. I hope this could be beneficial and easy to understand. Before I finish, I would like to add one schema that shows all the steps that were mentioned above about EXW.
P.S. You can click on and see the schema bigger.
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