payment terms- Ex works

[Former Member]

payment terms- Ex works means wat

pls giv the list of payment terms and when we hav use each

[Lakshmipathi]

Dear Chakri

Ex works is an Inco Term being predominantly used in sales.

Assume you are a manufacturer of some auto parts and you get an order from a customer and the terms is Exworks. In this case, once the goods is ready for despatch, you have to inform the customer about the readiness of the material. They will either arrange a transport to collect the material or authorises you to do so and the cost to that effect will be borne by the customer.

In simple, whatever charges incurred from taking the goods from manufacturing plant till delivery at warehouse, it has to borne by the buyer.

thanks

G. Lakshmipathi

[Former Member]

Ex-works in realtime refers to the payment term. SAP refers to it as Incoterm. Incoterm is short for INterrnational commercial terms defined by the International chamber of commerce. these terms define how the payment, liability, risk and responsibility of both the buyer and seller.

Exworks is delivey is made at the factory gates so the responsibility of transporting it is with the buyer. If anything happens to the consignment after the buyer takes charge of the consignment at the factoy gates then it is the buyer's responsibiliy. This is complete risk to the buyer and minimum risk to seller. aLSO THE TERMS OF transport and transit insurance is to the buyer's account. These terms come in handy especially in international business especially when you are opening LCs or negotiating them. there will be a special clause where it will be mentioned that all terms shall be as per the ICC and as per UCPDC 500. UCPDC is incidentally Uniform customs and practices for Documentary credits bulletin 500.

Hope its clear.

regds

jude

[Former Member]

Ex Works etc.. are not payment terms but they are "Incoterms"

Some of the common Incoterms are :

CFR Costs and freight (Not borned by the buyer)

CIF Costs, insurance & freight (Not borned by the buyer)

CIP Carriage and insurance paid to

CPT Carriage paid to

DAF Delivered at frontier

DDP Delivered Duty Paid(no charges borned by the buyer)

DDU Delivered Duty Unpaid

DEQ Delivered ex quay (duty paid)

DES Delivered ex ship

EXW Ex Works(All charges borned by the buyer)

FAS Free Alongside Ship

FCA Free Carrier

FH Free house

FOB Free on board

Incoterms are Commonly-used trading terms that comply with the standards established by the International Chamber of Commerce (ICC).

Reward if helps you

Rgds

Edited by: Sudeep Mundada on Mar 12, 2008 9:38 AM