EXW or FCA Which should it be?

EXW = Ex Works

Place of delivery: At the seller’s premises (factory, warehouse)

Seller’s responsibility: Minimal – handing over the goods

Buyer’s obligations: Organizing and paying for transportation; Bearing all risks and costs from the point of pickup; Export customs clearance (local specifics may apply)

Advantage for the seller: Minimal involvement and responsibility

Disadvantage for the buyer: Difficulties organizing export (especially if from another country)

FCA = Free Carrier

Place of delivery: Agreed location ( seller’s factory/warehouse or another nominated place, e.g., an external warehouse)

Seller’s responsibility: Export customs clearance; Delivering goods to the carrier nominated by the buyer

Advantage for the buyer: Easier control over transportation ; not handling customs clearance

Disadvantage for the seller: More administrative effort (customs, delivery to specified place)

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