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What Is Ex Works Shipment? | Ex Works Delivery Point, Ex Works Risk And Cost | [Ex Works Explained] - YouTube
Channel: Revisit
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exw x works
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x works is one of the 11 standardized
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inco terms
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international commercial terms published
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by the international chamber of commerce
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so without further delay let's delve
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into the details of exw
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place or point of delivery this rule
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places the minimum responsibility on the
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seller
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who has to make the goods available
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packaged accordingly at the specified
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place
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usually the seller's factory or
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warehouse
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delivery and risk the buyer will collect
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and load the goods onto his truck or
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container and be responsible for all
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export procedures
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onward transport and all costs arising
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after collecting the goods
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for practicality the seller is usually
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the one doing the loading
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however they are not obliged to load the
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goods
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and this is at the buyer's risk if the
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seller does so
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mode of transport it can be used for any
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transport mode or where there is more
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than one transport mode
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export clearance despite its simplicity
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this rule presents many challenges for
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both parties when it is a cross-border
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transaction
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specifically the seller or exporter will
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still need to be doing the export
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reporting
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the buyer is obliged to undertake export
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procedures
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obtaining licenses security clearances
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etc in most cases the buyer is
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ineffectively positioned to do this
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as such the seller is only obliged to
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assist at the buyer's risk and expense
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however the buyer using these terms
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usually appoints their freight forwarder
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or agent to handle the collection and
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export procedure
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from the seller's perspective there is
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the problem of obtaining evidence that
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the goods are to be exported
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where vat or sales tax is charged on
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domestic sales
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the tax authorities may require this the
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seller will then need to liaise with the
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buyer or its agent to get a copy of the
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export documents
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if the buyer wants to export the goods
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and anticipated the difficulty in
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getting the export clearance
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it is best to use fca free carrier
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rule we will explain the fca rule in the
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next video presentation
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order within the incoterms 2020 rules
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the incoterms rules cover these areas of
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obligations
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risk and costs in a set of 10 articles
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numbered
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a1 b1 etc the
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a articles representing the seller's
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obligations
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and the b articles representing the
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buyer's obligations
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in incoterms 2020 the internal order
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within each incoterms rule now follows
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the sequence
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a1 b1 general obligations
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a2 b2 delivery taking delivery
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a3 b3 transfer of risks
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a4 b4 carriage a5
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b5 insurance a6 b6 delivery transport
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document
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a7 b7 export import clearance
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a8 b8 checking packaging marking
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a9 b9 allocation of costs
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a10 b10 notices a
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sellers end b buyer's obligations
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costs and risks a1
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general obligations the seller must
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prepare the goods and the commercial
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invoice
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or its equivalent electronic message in
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accordance with the sale contract and
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any other evidence of an agreement that
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the contract may require
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b1 general obligations
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the buyer must collect the goods when
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informed by the seller that the goods
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are ready
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refer to article a2 delivery and article
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a10
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notices a2 delivery
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the seller must get the goods ready for
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the buyer to collect at a named place on
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the delivery
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date or within the stipulated place and
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time for delivery
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b2 taking delivery
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the buyer must arrange the collection
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and take delivery of the goods as soon
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as it is ready under article a2
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a3 transfer of risks
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the seller subject to the provisions of
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article b3
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transfer of risks will bear all risks of
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loss or damage of the goods until the
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goods are placed at the disposal of the
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buyer according
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to article a2 b3
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transfer of risks the buyer bears all
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risks of loss of or damage to the goods
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from the time they have been put in
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place at his disposal in accordance with
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article a2
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provided however that the goods have
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been duly apportioned to the contract
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that is to say clearly set aside or
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otherwise established as the contract
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goods
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should the seller neglect to give notice
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according to article b10
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he will have to bear all risks of loss
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or damage to the goods from the agreed
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delivery date or the expiry date of any
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period established for taking delivery
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a4 carriage the seller is not obliged to
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the buyer to make
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a contract of carriage however
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the seller must assist the buyer at the
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buyer's request
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risk cost and information in the
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seller's possession
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including transport-related security
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requirements that the buyer needs to
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arrange
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carriage b4 carriage
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the buyer must arrange the carriage at
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its own cost to collect the goods from
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the named place of delivery
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a5 insurance
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the seller is not obliged to the buyer
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to make a contract of insurance
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however the seller must assist the buyer
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at the buyer's request
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risk and cost any information in the
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seller's possession that the buyer needs
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for arranging the insurance
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b5 insurance
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the buyer is not obliged to the seller
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to make a contract of insurance
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however it is in the buyer's interest to
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obtain its insurance
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a6 delivery transport document
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the seller is not obliged to the buyer
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b6
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proof of delivery the buyer must give
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the seller documentation proof of having
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taken delivery
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a 7. export import clearance
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where applicable the seller should
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assist the buyer
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at the buyer's request risk and cost to
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obtain documents and or
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information related to all export
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transit import clearance formalities
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required by the countries of export
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transit import
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such as export transit import license
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security clearance for export transit
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import
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pre-shipment inspection and any other
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official authorization
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b7 export import clearance
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where applicable the buyer must perform
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and pay for all export transit import
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clearance formalities as needed by the
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countries of export transit import
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like export transit import license
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security clearance for export transit
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import
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pre-shipment inspection and any other
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official authorization
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a8 checking packaging marking
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the seller must pay for the cost of
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those checking operations
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such as checking quality measuring
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weighing
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counting necessary to deliver the goods
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in accordance with article a2
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the seller must package the goods at its
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own cost unless it is usual for the
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particular trade to transport the type
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of goods sold unpackaged
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the seller must package and mark the
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goods appropriately as per agreements
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for collection by the buyer
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b8 checking packaging marking
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the buyer is not obliged to the seller
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a9
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allocation of costs the seller must pay
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for all costs relating to the goods
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until they have been delivered according
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to article a2
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other than those payable by the buyer
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under article b9
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allocation of costs b9
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allocation of costs the buyer must
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pay for all the costs relating to the
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goods from the time they have been
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delivered under article a2
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reimburse all costs and expenses paid by
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the seller in providing assistance or
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information under articles a4
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carriage article a5 insurance
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or article a7 export clearance
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pay where needed all duties taxes
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and other charges as well as the costs
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of performing the customs formalities
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payable upon export
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and pay the additional costs incurred
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when the goods are ready for
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collection or fail to give proper
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notification according to b10
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a10 notices the seller must notify the
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buyer to enable the buyer to take
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delivery of the goods
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b10 notices whenever it is agreed that
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the buyer is entitled to determine the
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time within an agreed and or the point
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of taking delivery within the named
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place
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the buyer must give the seller
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sufficient notice
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recap x works exw
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is a shipping arrangement in which a
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seller makes a product available at a
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specific location
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usually at the seller's warehouse the
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buyer has to pay for the transport costs
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once buyers have their goods they are
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responsible for other risks
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such as loading the goods onto trucks
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transferring them to a ship or plane
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and meeting customs regulations thank
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you for watching
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and i hope the information provided in
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this video gives you a better
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understanding of the incoterms rule for
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exw
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do drop me your comments and let me know
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your thoughts
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coming soon fca free carrier
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goodbye from your trusted shipping guide
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