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Hi All,

POL: Any Indian port
POD: Nigeria

Incoterm: EXW ANY PORT IN U.S.A.

LC calls for WAREHOUSE DELIVERY NOTE

Is the above workable, since for incoterm EXW means that the seller fulfils his obligation to deliver when he as made the goods available at his premises (i.e. work, factory, warehouse, etc ) to the buyer. But LC issued and states EXW Any Port in USA which conflict with EXW rules.

Pls provide your views.

Thanks and Regards
DLK

Hi Pal,

EXW is more suitable for domestic sales. Internationallyt it has many difficulties, i.e, proof of export of goods, impossibility to manage the cargo, as the shipper is the buyer, etc.
In documentary credit then, when normally the issuing bank required transport document the difficulty is huger.
I saw a couple of l/c, one asking for a transport document, as per further agreement between buyer and seller,
the second asking for a delivery note, issued on receipt of goods by buyer or its carrier, as the sale was without VAT,
the seller has to receive an invoice or a customs document visaed by the customs authority, that for an italian company may be at the polish-russian borders, and the carrier is just a lorry driver...
One thing Any indian port or any USA port? Thanks
other comments appreciated
Ciao

Hi,

I agree with picant that incoterms EXW cause some difficulties for foreign sales and LC transactions because LC issuing banks often request transport documents to be presented and to be issued to their name/order (as additional collateral). As for the definition of EXW, sellers have only the responsibility to make goods ready for the buyer and not arrange shipment.

In practise, despite EXW is agreed upon on LC, generally buyer and seller agree that seller arrange shipment on behalf of buyer and present a transport document to the bank.

In your case, in the assumption that LC states EXW any port in India;
* LC may be wrongly issued and i/o stating EXW .............. (place of factory, warehouse etc), states port of loading.
* For an LC calling for delivery note ( not a transport document), in my opinion, it is not true to add field 44E/44F in the LC text, because there is no document that you can check the loading/discharge ports.
.
Other comments appreciated.

LC states Exw means no port of loading,port of discharge in LC. straight away warehouse to warehouse it's applicable for local

Hello dear Sirs/Madams

There is a question about EXW term,
How it's possible to convince the seller to pay the Export charge -like clearance ,documentation in EXW term?
Is there any relation between this issue and export incentive ?


Your comments will be highly appreciated .
Sana