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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 Incoterms 2020 rule EXW, named place being the seller's warehouse, which obligation falls on the seller?

Under EXW the seller only has to place the goods at the buyer's disposal at the named place, such as its own warehouse, without loading them on the collecting vehicle or clearing them for export. The buyer bears the remaining costs and risks.

  1. ALoading the goods onto the buyer's collecting vehicle
  2. BClearing the goods for export
  3. CPlacing the goods at the buyer's disposal at the named place without loading themCorrect
  4. DPaying for main carriage to the buyer's country

Explanation

EXW places minimum obligations on the seller, who delivers by making the goods available at its premises, not loaded and not export cleared. Loading and export clearance fall on the buyer. Option A is the common error, as loading is not required of the seller.

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