What is an Ex-Works Basis??

C

Chuck

Guest
I contacted a business about purchasing goods, and they said in their e-mail, they *cannot deliver*, but can "quote prices on an ex-works basis".

Does anyone know what this means?

Does it mean they can quote prices based upon me collecting goods (or having goods collected) from their premises?

Thank you!
 
Chuck said:
Does it mean they can quote prices based upon me collecting goods (or having goods collected) from their premises?
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Correct, so the customer pays the cost of freight from the supplier's premises to the final destination.
 
Yes chuck. This is the industry standard where I work. You pay to collect and therefore the onus is on you to insure the goods once they leave their premises. Also the date of invoice will be the date of departure, not the date you receive the goods (has implications if you are paying 60 days date of invoice, for example).

It also means that if you are collecting outside the EU, you have to take care of VAT, duty, customs clearance etc and will need to get the services of a clearing agent.

Rebecca
 
Oh yeah and if you do go ahead and it's from another EU country, hang onto your docket as proof of export as sometimes you need to prove that VAT wasn't applicable down the line.

Rebecca
 
Thanks very much everyone for your help!

It's very much appreciated; thanks again!
 
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