Exworks And Requirement Of Port of Destination In LC

[rejisac]

Dear,

Can any one tell me whether we can fill up port of destination if the Incoterms is 'Exworks'. The reason being the buyer has the responsibility to transport the goods from seller's warehouse onwards....

Regards

Reji Isaac

[nraajesh]

Hello Reji,

Technically speaking, there is no need for port of destination if the incoterms is EXW.

But, as the compliance aspect is the main focus for all trade finance banks nowadays, they would require the information to be furnished.

Regards,

Rajesh

[picant]

Hi Pals,

EXW is not comfortable for a documentary credit, as it allows the buyer/applicant to enter in possessof goods immediately, where normally a bank control the cargo by receiving full set of bill of lading, be consignee in an AWB or Truch waybill.
To avoid this problem of loss of goods control, many banks require transport documents even if shipment done by the buyer.
Some banks state in the l/c that transport document must be presented as per buyer and seller agreement.
I know that, during the Incoterms latest revision, many members of ICC had for cancellation of EXW, but then it was decided to keep this Incoterm stating that it is more suitable for domestic transaction.
Other comments appreciated
Ciao

[billgoughSMICE]

EXW (Exworks) should NEVER be attempted by an intermediary, you have zero protection from circumvention under this term.

End buyer's on the other hand can freely use this term and frequently benefit financially through negotiating their own transport and insurance terms and costs.