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 Define ex works price, EXW expert please advise

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TSSkylinestar
post Aug 21 2017, 06:09 PM, updated 7y ago

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I, from Sarawak, would like to order a product 111 from company AAA in Selangor. As AAA doesn't stock the product 111 locally, he has to order from USA.

Now, he quote me in Ringgit for product 111. He said the price is EXW ex works price. Then he quotes me the freight charges from USA to Kuching.

Now, I need your opinion. What is EXW price?
- Is this the price of the item when it's in Malaysia? or
- Is this the price of item when it's still in USA.


Google shows this:
QUOTE
Ex Works (EXW) is an international trade term that describes an agreement in which the seller is required to make goods ready for pickup at his or her own place of business. All other transportation costs and risks are assumed by the buyer.

This sounds like the price of the item when it's in company AAA store in Malaysia. But it can mean otherwise, hence need /k expertise.
TSSkylinestar
post Aug 22 2017, 08:59 AM

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Anyone?
Wassupman
post Aug 22 2017, 09:19 AM

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EXW means the goods will not leave its factory.

you have to arrange transportation from his factory to port A. then from port A to port B. then from port B to your factory.

you also can request the vendor to quote you in C&F which means they will arrange the transport all the way to port B. all you need is just to arrange transport from port B to your factory.
TSSkylinestar
post Aug 22 2017, 10:20 AM

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QUOTE(Wassupman @ Aug 22 2017, 09:19 AM)
EXW means the goods will not leave its factory.

you have to arrange transportation from his factory to port A. then from port A to port B. then from port B to your factory.

you also can request the vendor to quote you in C&F which means they will arrange the transport all the way to port B. all you need is just to arrange transport from port B to your factory.
*
a million thanks.
so EXW means item still in factory in USA. nod.gif
tayman
post Aug 22 2017, 10:37 AM

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EXW do not include duty & tax, custom clearance and shipping fees yet. It just the price of the item from oversea.

For example, you buying a motherboard from usa RM 1000 -> EXW price
but actual total price would be
10% duty (subject to HS code) - RM 100
Custom clearance - for example RM 200
6% GST - RM 78
Total - RM 1378
y4ng
post Aug 22 2017, 11:05 AM

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EXW = Ex-Works
go read Incoterms, easiest ask for DDP

This post has been edited by y4ng: Aug 22 2017, 11:06 AM
JoeYoung
post Aug 22 2017, 02:38 PM

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EXW means Cargo is available to pickup from USA factory dock.
You should get your forwarder to pickup from USA factory to Malaysia at your own cost. That why seller quoted you the DTD price (Door to Door) minus tax (if any).

Example. Sony MidValley has promo only store pickup. So if you want Sony to post to you, need to add courier fee. If you sent someone to pickup for you, you need to pay for his transportation too. Hence your cost to get it DTD.
SUSxeda
post Aug 22 2017, 06:20 PM

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If you want to be safe and make it really clear, you can always request your supplier to SPECIFY the location of the EXW.

It might not be the normal practice, but some companies states the incoterm like EXW - Shenzen or FOB - Klang to eliminate any confusion as to which location/port the incoterm is reflected on.

 

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