THE USE OF THE “EX WORKS” INCOTERM CLAUSE FROM THE PERSPECTIVE OF EXPORT CONTROL

On 27 July, an article from MME Legal Tax Compliance in Switzerland starts by saying that the use of international trade terms provided by Incoterms 2020 offers parties to an international trade transaction a standardised way of handling their contractual relationship. They create legal certainty in international and commercial transactions and prevent misunderstandings and disputes between the parties. They are generally recognised by international courts, but only become effective if the parties have reached a contractual agreement on their use. The article focuses on EXW (“Ex Works”), which means that the seller offers his goods for sale at his premise (literally, “ex works”) and the buyer is obliged to collect the purchased goods from the place of sale, which is why the EXW clause is also referred to as the “collection clause”. However, the article warns that is not suited to international trade and should not be used when the buyer cannot complete export formalities. A more suitable alternative would be Free Carrier (FCA), which requires the seller to complete customs declarations and obtain any authorisations necessary for the export of items, technology, software or know-how.

https://www.mme.ch/en/magazine/magazine-detail/url_magazine/the_crux_of_the_ex_work_incoterm_clause_from_the_perspective_of_export_control/

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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