What is Ex Works in SAP SD-FT - Foreign Trade?

SAP Term: Ex Works

• Component: SD-FT

• Component Name: Foreign Trade

• Description: A declaration that the seller has fulfilled the obligation to deliver after making the goods available to the buyer on the seller's premises. Unless otherwise agreed, the seller is not responsible for loading the goods on the vehicle provided by the buyer, nor for clearing the goods for export. The buyer bears all costs and risks involved in transporting the goods from the seller's premises to the desired destination. In most parts of the world, Ex Works means that the shipper loads the vehicle.

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• Key Concepts: 
  Ex Works is a term used in international trade that indicates that the seller is responsible for delivering goods to a buyer at the seller's premises. This term is often used in conjunction with Incoterms, which are international trade terms that define the responsibilities of buyers and sellers in international transactions. In Ex Works, the seller is responsible for making the goods available at their premises and the buyer is responsible for arranging and paying for transportation of the goods from the seller's premises to their own. 
  
  How to use it: 
  In SAP SD-FT Foreign Trade, Ex Works can be used as a delivery term when creating sales orders. When this delivery term is selected, the system will automatically calculate the freight costs and other related costs associated with transporting the goods from the seller's premises to the buyer's. The buyer will then be responsible for arranging and paying for transportation of the goods from the seller's premises to their own. 
  
  Tips & Tricks: 
  When using Ex Works as a delivery term, it is important to ensure that all necessary documents are provided by the seller in order for the buyer to arrange and pay for transportation of the goods. This includes documents such as commercial invoices, packing lists, and certificates of origin. 
  
  Related Information: 
  Ex Works is one of 11 Incoterms defined by the International Chamber of Commerce (ICC). Other Incoterms include FOB (Free on Board), CIF (Cost, Insurance, Freight), and DDP (Delivered Duty Paid). For more information on Incoterms, please visit https://iccwbo.org/resources-for-business/incoterms-rules/.