EX Works for Export

When using EX Works all of the costs and risks of shipping the goods are for the buyers account. For the buyer it can be a good term to get a clear picture of all of their shipping costs, which can help calculate more accurate landed costs.

However, there are issues when using EX Works. For example the risk passes when the goods are made available for collection. This means that the buyer is responsible for loading the goods, but many companies who use this term as the seller, will actually load the goods.

The other issue is the customs declaration for export, where the buyer has responsibility for this process, yet a seller who is exporting from the UK, would not be charging VAT. Therefore, it is important that they can get proof of export for HMRC audit purposes, which can be difficult in some cases when using the EX Works term. For an exporter it may be better to use other terms, which cover the loading and export declaration process.