Incoterms 2020 Grupo E: Explicación sencilla

Incoterms Overview

This section introduces the concept of Incoterms, focusing on the term EXW and its implications in international trade.

Understanding Incoterms

• Incoterms are 11 terms divided into 4 groups for international trade.

• EXW (Ex Works) is a term where the seller transfers responsibility to the buyer at the outset.

• In EXW, the buyer assumes risks and costs upon goods availability; Costa Rican free zone companies cannot use this term due to law 7.210.

Implications of EXW

• Buyer takes charge upon goods availability at an agreed location.

• Buyer bears all export/import costs and responsibilities in the destination country.