Under EXW (Ex Works) terms, the buyer/consignee is responsible for all risks and costs once the goods leave the supplier’s factory.
Below is a clear explanation of key procedures, requirements, and frequently asked questions for EXW shipments.
Key Requirements for EXW Shipments
- When booking space, clearly state your requirements for tax refund and customs declaration (if applicable).
- Provide necessary documents including shipping order (booking note), letter of guarantee, etc.
- Ensure the loading list / packing list is accurate and complete.
- If full payment has not been received, the supplier may request original Bill of Lading (B/L) for security.
- Customs clearance documents are generally prepared by the shipper/supplier.
Typical Scenarios for EXW
- Factory does not have export rights.
- Goods value is relatively low.
- Shipper prefers a simple, hassle-free process.
Frequently Asked Questions (FAQ)
1. Can we do tax-refund customs declaration under EXW?
Yes, normally you can.
Simply inform your freight forwarder in advance when booking that you require customs declaration for export tax refund / verification.
If your forwarder does not support this, ask for the reason and arrange with a forwarder who can handle tax-refund declarations.
Simply inform your freight forwarder in advance when booking that you require customs declaration for export tax refund / verification.
If your forwarder does not support this, ask for the reason and arrange with a forwarder who can handle tax-refund declarations.
2. Do I need to send a shipping order (booking note) to the forwarder?
Yes, under all trade terms, you must provide a formal booking note to the freight forwarder.
This protects your rights and interests and can be used as proof of cargo ownership in case of disputes.
This protects your rights and interests and can be used as proof of cargo ownership in case of disputes.
3. Can we refuse to provide guarantees and supplementary documents?
No, you must provide them.
This includes but is not limited to:
This includes but is not limited to:
- Non-dangerous Goods Guarantee
- Dangerous Goods Guarantee
- Telex Release Guarantee
- Amendment Guarantee
- Shipping manifest
- B/L supplement instructions
Without these documents, the shipment process cannot continue.
4. If the factory has no export rights, do we still need to provide a cargo list?
Yes, you must provide a detailed loading list so the forwarder can properly prepare customs declaration documents.
Be honest and transparent, especially for sensitive products, branded goods, or regulated items. Disclose this information when booking to avoid customs issues after loading.
Be honest and transparent, especially for sensitive products, branded goods, or regulated items. Disclose this information when booking to avoid customs issues after loading.
5. If full payment is not received, can we ask for an original B/L or hold telex release?
Yes.
The shipper may request original Bill of Lading or delay telex release until full payment is received.
The shipper may request original Bill of Lading or delay telex release until full payment is received.
6. Who pays inspection fees, container detention fees, etc., if the goods are inspected by customs?
- If the issue is caused by misdeclaration or incorrect documents from the shipper, the shipper is responsible.
- If all documents are truthfully provided, the buyer/consignee is normally responsible.
- Special cases can be resolved through mutual negotiation.
7. Is the shipper responsible for checking the Bill of Lading?
Yes.
Confirm with the buyer in advance about the B/L content, HS code, and description.
The Bill of Lading is an important document of title, so accuracy is critical.
Confirm with the buyer in advance about the B/L content, HS code, and description.
The Bill of Lading is an important document of title, so accuracy is critical.
8. Who prepares and sends customs clearance documents?
- Generally prepared by the shipper and sent directly to the buyer.
- If you want the forwarder to send them on your behalf, specify this when booking.
- For certificates such as Certificate of Origin, inform the forwarder in advance if you need them to arrange issuance.
9. Do I need to inform the forwarder if I cancel the booking?
Yes.
Any empty container fees / cancellation charges caused by failure to notify the forwarder in time will be the shipper’s responsibility.
Please promptly advise the forwarder if you change forwarders, delay the shipment, or cancel the space.
Any empty container fees / cancellation charges caused by failure to notify the forwarder in time will be the shipper’s responsibility.
Please promptly advise the forwarder if you change forwarders, delay the shipment, or cancel the space.
