Import And Export Practice Exam

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Under EXW (Ex Works), what is the seller's primary obligation?
Correct Answer:
Make the goods available at the seller's premises and provide necessary export documentation; buyer bears nearly all costs and risks from pickup.
Explanation:
In EXW, the seller's role is the simplest: make the goods available at the seller’s premises or another named place, in a condition ready for pickup, and provide any documents needed for the buyer to take delivery. From that moment, the buyer takes on almost all costs and risks, including loading, transportation, export clearance, and insurance if required. That’s why the description that fits EXW best is the seller providing the goods at their premises and supplying necessary export documentation, while the buyer bears nearly all costs and risks from pickup. The other scenarios imagine the seller taking on more duties (delivering to the buyer’s premises and arranging export clearance, or delivering on board and arranging insurance), which align with other Incoterms, not EXW.

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