Why not EXW (ex works) – the most used term?
For two reasons, one of which is purely psychological. When choosing the delivery term “ex works”, the exporter unconsciously signals that he does not care how and when his customer receives the goods and in particular, the exporter does not obtain any economic insight in the competitiveness of his commodities. Another reason for not choosing “ex works” is the confusion about exporter’s/importer’s roles. If the clause is taken literally – as laid down in the ICC conditions – the importer is actually responsible for the loading of the goods at the exporter’s place (factory) and must issue commercial documents and arrange customs clearance in the home country of the exporter. This is very illogical and contrary to the usual practice. When choosing Free carrier (FCA) these procedures naturally lie with the exporter. It is quite common among exporters to use FOB, CFR (the former C&F clause) and CIF, notwithstanding the fact that these terms are only applicable for conventional sea freight.
