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ACCA Applied Skills · Corporate and Business Law (Global) · Introduction to the UN Convention on Contracts for the International Sale of Goods and ICC Incoterms

Under the ICC Incoterms rules, a seller in Brazil agrees to sell machinery to a buyer in Canada on EXW terms, at the seller's factory. Who is responsible for loading the goods onto the collecting vehicle?

The buyer is responsible for loading. Under EXW the seller completes delivery by making the goods available at its premises or another named place, without loading them onto the buyer's collecting vehicle, so loading risk and cost pass to the buyer.

  1. AThe seller, because delivery is complete only once the goods are on the vehicle
  2. BThe buyer, because under EXW the seller delivers by placing the goods at the buyer's disposal without loadingCorrect
  3. CThe carrier, because loading is always a carrier obligation under every Incoterm

Explanation

Under EXW the seller delivers by placing the goods at the buyer's disposal at the named place, not loaded on the collecting vehicle. Loading cost and risk therefore fall on the buyer. The first option describes FCA at the seller's premises, not EXW.

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