The International Chamber of Commerce established INCOTERMS to clearly define the shipment and delivery details for an international trade contract. Each term specifies the costs, risks and obligations that the exporting and importing parties assume.
Below is a list of INCOTERMS and what they mean if they appear in an international trade contract.
Ex-Works (EXW)
Ex-Works applies to all modes of transportation including water, air, rail, truck and pipeline. The term means that the exporter must pay for packing, labor and storage charges typically at a warehouse from which the importer picks up and transports the product. The importer pays all other expenses.
