Disadvantages of Ex Works - EXW?

Answer 1

Ex Works is where the seller's only responsibility is to make the ordered goods available to the buyer at the seller's premises, from there the buyer must make all delivery and distribution actions himself. This is one of the disadvantages to the buyer of using Ex works, as the risk transfers very early into the overall delivery compared to other incoterms. Another disadvantage to the buyer is they must arrange both export and import licences as well as organising customs formalities. As the risk transfers to the buyer before loading they must also arrange all the haulage to the final destination which is a disadvantage as it adds already high amounting costs.