EARMARKED GOLD To the Top

Bullion or coin gold held by a nation, within its monetary reserves, in trust for another government.

EAST-WEST TRADE

A general reference to trade between the industrial nations of the West, particularly those nations that are members of the Organization for Economic Cooperation and Development.

ECONOMIC COMMUNITY OF WEST AFRICAN STATES (ECOWAS)

Formed in Lagos, Nigeria, in 1975 It is an organization of sixteen West African states committed to the elimination of trade barriers among the member states and the promotion of economic development in the region.

ECONOMIC FRICTION

Cultural, religious, or ideological perspectives that interfere with and distort opportunities for trade or economic advancement.

ECONOMIC INTEGRATION

The process of unifying two or more national economies through conscious coordination of trade, fiscal, and monetary activities.

ECONOMIC MOBILIZATION

The instrumentation and direction of a nation’s economic resources under governmental support, toward the attainment of a clear national goal, such as the prosecution of a war.

ECONOMIC NATIONALISM

A knowing, articulated national drive toward economic self-sufficiency. Economic nationalism is comparable to Autarchy, but does not command the economic isolation particular in the autarchical form.

ECONOMIC UNION

Also know as an economic community, the economic union incorporates the features of a common market, unrestricted free trade among the members, absence of duties or quantitative restriction on inter-market commerce, and a common external tariff, but is extended to accept a centralized internal economic policy.

EDGE ACT CORPORATION

A federally chartered bank formed under authority of the Edge Act of 1919 (Sec. 25 A of the Federal Reserve) exclusively for the purpose of engaging in international transaction. The Edge Act permits a commercial bank, through the formation of a subsidiary under Sec. 25 A, to overcome the usual impediments to the conduct of banking activity outside its home state. An Edge Act bank may be established in a state other than the base state of its parent, so long as it restricts activity to international-trade-related activities.

Originally the Edge Act had two types of international subsidiaries, banking Edge and investment Edge. The act has been amended to eliminate the distinction between banking and investment Edges, all Edge Act banks may now participate in both banking and investment activities.

EDIFACT

The Electronic Data Interchange for Administration, Commerce and Transport which provides an electronic ability to transmit detailed Custom Form 3461 (Entry/Immediate Delivery) Custom Form 7501 (Entry Summary) and invoice date.

EDGE ACT CORPORATION

Banks that are subsidiaries either to bank holding companies or other banks established to engage in foreign business transaction. They were established by Act of Congress.

EFFECTIVE RATE OF EXCHANGE

The true cost of acquiring a unit of a given currency in terms of another currency. This rate includes taxes and other costs that are factored into the price of the currency converted.

EFFECTIVE RATE OF PROTECTION

The net protection afforded by a nation’s tariff system to any given domestic product. The higher the rate of duty, the greater the protection against foreign import.

EFFECTIVE UNITED STATES CONTROL

The condition attributed to vessel owned by U.S. citizens but registered in friendly flag of convenience countries and presumed to be available for use by the United States in time of war or national emergency.

ELAIN

The acronym for Export License Applicatin and Information Network. Exporter must apply to BXA (Bureau of export administration) for personnel identification number (PIN). once received, electronics submission of export license information to and from Bxa is available.

ELECTRONIC DATE INTERCHANGE (EDI)

The electronic, or computer-to-computer, legitimate exchange of official business forms such as letters of credit, manifest and bills of lading.

ELECTRONIC ENTRY

The electronic transmission of Custom Form 3461 (Entry/Immediate Delivery), Custom Form 3461ALT (Immediate Delivery Application) or Custom Form 7501 (Entry Summary) data utilizing ACS (Automated Commercial System) in order to obtain the release of merchandise from Customs custody.

ELECTRONIC ENTRY SUMMARY

The electronic transmission of Custom Form 7501 (Entry Summary) data utilizing ACS for the purposes of duty assessment and the collection of statistical data.

ELECTRONIC IMMEDIATE DELIVERY

The electronic transmission of Custom Form 3461 (Entry/Immediate Delivery) or Custom Form 7501 (Entry Summary) data utilizing ACS (Automated Commercial Systems) in order to obtain the release of merchandise from Customs custody.

ELIGIBLE BANKERS’ ACCEPTANCE

Bankers’ acceptances that are termed eligible meet the requirements of Section 13(7) of the Federal Reserve Act and subsequent interpretations by the Board of Governors of the Federal Reserve System.

ELKINS ACT

A law providing penalties for violation of the Interstate Commerce Act.

ELIGIBLE PAPER

Drafts, bills of exchange, and other instruments that satisfy requirements for discount or re-discount at the counters of a Federal Reserve Bank. In addition to being eligible, the paper must be acceptable, i.e., drawn, accepted, or endorsed by a credit-worthy party.

ELVIS

The acronym for BXA’s (Bureau of Export Administration) Export License Voice Information System. Elvis is an automated attendant answering (202) 377-4811 and provides recorded information on a range of topics.

Press 1 for information on STELA

Press 2 for information on obtaining commodity classifications

Press 3 for information on emergency or special licenses

Press 4 for information and ordering forms and publications

Press 5 for update on latest regulations

Press 6 for update to table of denial orders

Press 7 for information on seminar programs

Press 8 for export licensing fax numbers list

Press 9 to switch to main menu

Press 0 to speak to export counselor

EMBARGO

A prohibition on exports or imports, either with respect to specific products or specific countries. Historically embargoes have been ordered most frequently in time of war, but they may also be applied for political, economic or sanitary purposes. Embargoes imposed against an individual country by the United Nations-or a group of nations-in an effort to influence its conduct or its policies are sometimes called “sanctions.”

EMINENT DOMAIN

The sovereign power to take property for a necessary public use, with reasonable compensation.

ENDORSE To the Top

The legal act of transferring and passing title to an instrument on to another party.

ENDORSEMENT

The signature of the payee or any endorser of any instrument, serves to transfer title.

ENTERED

For the purpose of the tariff schedule the term “entered” means, entered, or withdrawn from warehouse for consumption, in the customs territory of the United States.

ENTERED FOR CONSUMPTION

For the purpose of the tariff schedule, “entered for consumption” does not include withdrawals from warehouse for consumption.

ENTERED TEMPORARILY UNDER BOND (T.I.B.)

Means that an entry summary supporting a temporary importation under bond has been filed with Customs in proper form.

ENTIRETIES DOCTRINE

A principle of customs law under which components may, in some cases, be entered for duty purposes under the tariff item applicable to the finished product.

ENTREPOT

A warehouse or storage facility where foreign merchandise may be deposited and withdrawn for re-export without incurring customs duties.

ENTRY FOR CONSUMPTION

The entry of merchandise is a two-part process consisting of (1) filing the documents necessary to determine whether merchandise may be released from Customs custody and (2) filing the documents which contain information for duty assessment and statistical purposes. In certain instances, such as the entry of merchandise subject to quotas, all documents must be filed and accepted by Customs prior to the release of the goods.

ENTRY FOR WAREHOUSE

Means that an entry summary for warehouse has been filed with Customs in proper form.

ENTRY

When a shipment reaches the United States, the consignee will file entry documents for the goods with the district or port director at the port of entry. Imported goods are not legally entered until after the shipment has arrived within the port of entry, delivery of the merchandise has been authorized by Customs and estimated duties have been paid. It is the responsibility of the importer to arrange for examination and release of the goods.

ENTRY DOCUMENTS

Within five working days of the date of arrival of a shipment at a U.S. port of entry, entry documents must be filed at a location specified by the district/area director, unless an extension is granted. These documents consist of:

a. Entry Manifest Form 7533, or Application and Special Permit for Immediate Delivery, Customs Form 3461, or other form of merchandise release required by the district director.

b. Evidence of right to make entry.

c. Commercial invoice or a pro forma invoice when the commercial invoice cannot be produced.

d. Packing lists if appropriate.

e. Other documents necessary to determine merchandise admissibility.

ENTRY PRICE

Under the Common Agriculture Policy of the European Community, the price at which certain imported agricultural products enter EEC commerce. If the entry price for those commodities falls below EEC standard, the community may impose additional duties on the imported agricultural products to offset the price advantage of the foreign product.

ENTRY SUMMARY

Means any other documentation necessary to enable Customs to assess duties, and collect statistics on imported merchandise, and determine whether other requirements of law or regulation are met. Generally filed on Custom Form 7501 (Entry Summary).

EO NOMINE

One of three methods for classification of merchandise for duty purpose. Eo Nomine means by its own name, in the event the product is not described by name in the tariff schedules, the customs examiner may classify the product according to it intended use, or the material of which it is composed.

EQUIPMENT INTERCHANGE RECEIPT

A document prepared by a carrier or lessor company having control over containers or trailers to be executed by a lessee, carrier, or other person taking delivery of those containers or trailers for use in the transport of goods. The interchange receipt serves as an acknowledgement that physical custody of the containers has changed hands.

ERRORS AND OMISSIONS

A clause in an open insurance policy that allows the insured to secure cover retroactively for property inadequately insured through the clerical or administrative error of the insured.

EQUALIZATION

A monetary allowance to the customer for picking up or delivering cargo to/from a point which is not the origin/destination shown on the bill of lading.

ESCAPE CLAUSE

A provision common to most international trade agreements permitting a signatory nation to suspend tariff or other concessions when imports threaten serious harm to the producers of competitive domestic goods.

ESSENTIAL CHARACTER

According to the Harmonized Tariff System of the U.S, can be described as the nature of the article, referencing factors including it’s bulk, quality, quantity, weight, value or perhaps it’s role in relation to the use of the goods. This term has not been legally defined and will no doubt lead to differences of opinion.

ESTIMATED TIME OF ARRIVAL (ETA)

The estimated date a vessel or aircraft arrives at the port or airport of destination.

ESTIMATED TIME OF DEPARTURE (ESD)

The estimated date a vessel or aircraft departs the port or airport of the country of export.

ESTIMATED TIME OF SAILING (ETS)

The estimated date a vessel departs the port of the country of export.

ETHNOCENTRIC PRICING

The policy of a firm to offer its products at the same price abroad as in the home market, irrespective of price sensitivity or other factors of the foreign market.

EURCO

A commercial version of the European Currency Unit.

EUROBILL OF EXCHANGE

A Bill of Exchange drawing a currency other than that used in the country of the maker.

EUROBOND To the Top

A bond or similar debt instrument issued by a government or a firm, denominated in the currency of the country of issue and paying interest in that currency but sold abroad.

EUROCRATS

Employees of the secretariat of the European Communities or its agencies.

EUROCURRENCY

The currency of one country, on deposit in another, e.g., a deutschemark claim owned by a U.K exporter and on deposit in the U.S.

EURODOLLARS

U.S. dollars placed on deposit in banks outside the United States (primarily in Europe). Such deposit are available for borrowing or investing by corporations and other banks.

EUROMART

Any market in which monetary instruments denominated in foreign currencies are traded.

EURONATIONALISM

A geopolitical viewpoint that holds that the interests of Europeans are substantially interrelated and transcend the national boundaries that separate Europeans into different states.

EURONET

An international, computer-based network founded by the European Communities to foster the movement of information among member states.

EUROPEAN COMMUNITIES (EC)

Created in 1967 when the European Economic Community (EEC) merged with European Coal and Steel Community and European Atomic Energy Community. Each of three entities was established by separate convention, the earliest of which was the Treaty of Paris of 1951 forming the European Coal and Steel Community. After the 1967 treaty, the three communities, while continuing to possess separate legal identities, would share common organ of administration and would be known as the European Communities.

EUROPEAN ECONOMIC COMMUNITY

One of three components of the European Communities. Formed in 1957 to establish a Customs union comprising France, the Federal Republic of Germany, Italy, the Netherlands, Belgium and Luxembourg. It sought to eliminate Customs duties and other regional trade barriers, to erect a common external tariff against nonmember countries, to develop a common agricultural policy, and to ensure free movement of labor and capital. Other European countries have since joined the union.

EUROPEAN FREE TRADE ASSOCIATION

A free trade area consisting of seven European countries among which tariffs and quantitative restrictions on industrial imports have been eliminated.

EUROPEAN TERMS

An expression of the value of any foreign currency in terms of how many units equal one dollar; effective Sept. 1, 1979, most New York banks have engaged this foreign currency method for transaction.

EVEN KEEL

The condition of a vessel where the draft at the stern equals the draft at the bow.

EVIDENCE OF RIGHT TO MAKE ENTRY

Goods may be entered only by the owner, purchaser, or a licensed customhouse broker. When the goods are consigned “to order” the bill of lading properly endorsed by the consignor may service as evidence of the right to make entry. An airway bill may be used for merchandise arriving by air.

EX

Means “from” in transportation language, it is the point from which the product is shipped, not necessarily its point of origin. In pricing ex indicates that the price is based upon making the goods available at the point for pickup by the purchaser, who is responsible for all charges beyond the named point.

EXCEPTIONS

Products specifically exempted from trade liberalization, such as duty reductions usually, exceptions are made to protect domestic industries that would suffer serious harm from increased imports.

EXCEPTIONS TO CLASSIFICATION

A publication containing classification ratings and rules different from the classification ratings and rules contained in a major classification.

EXCEPTION RATINGS

An additional or special freight rate, above the general commodity rates, applied to commodities which require special handling.

EXCESS FOREIGN CURRENCIES

Foreign currency, derived from the sale of U.S. agricultural commodities under P.L. 480, in excess of current U.S. requirements. Intermittently, the U.S. Treasury reviews the foreign currency position of the U.S. government. If the holdings of any given currency exceed requirements for that currency, various agencies of the government are instructed to use the excess foreign currency, rather than dollars, in satisfying U.S. obligations abroad.

EXCHANGE CONTROL

A system where by a government regulates possession of and dealings in foreign exchange. The main objective of exchange control is to allocate foreign exchange to necessary imports and expenditures.

EXCISE TAX

Taxes, commonly known as internal revenue taxes, imposed by the United States on certain classes of manufactures and services and on the performance of some transaction. Unlike customs duties, which are applied to imports only, excess taxes are applied equally to imports and domestic manufacturer of a given class. Importation is viewed, for taxing purposes, the same as “manufacturing” since both processes have the common effect of introducing an article into the commerce of the United States.

EXCLUSIVE PATRONAGE CONTRACT

Also known as merchant’s contract or shipper’s rate agreement, an agreement whereby a shipper of goods by water agrees to ship all his cargo over a given trade route aboard carriers that are member lines of the steamship conference.

EXCLUSIVE USE

The use of a trailer, container or similar transport equipment solely by one shipper to one consignee.

EXCHANGE CONTRACTS

Documents issued by foreign exchange brokers to both parties, confirming a foreign exchange transaction.

EXCHANGE CONTROL

The rationing of foreign currencies, bank drafts, and other instruments for settling international financial obligations by countries seeking to ameliorate acute balance of payments difficulties.

EXCHANGE CONTROL RISK

The possibility of defaults on obligations through imposition or reinforcement of exchange control.

EXCHANGE PERMIT To the Top

A governmental permit sometimes required of an importer to enable him to convert his own country’s currency into foreign currency with which to pay a seller in another country.

EXCHANGE RATE

The price at which one currency is exchanged for another currency, for gold, or for Special Drawing Rights (SDR’s).

EXCHANGE REGULATIONS/RESTRICTIONS

Restrictions imposed by an importing country to protect its foreign exchange reserves.

EXCHANGE/TRANSFER RISK

The risk that a foreign government will take action to block the transfer of foreign exchange to the seller’s country or have insufficient reserves to make the payment.

EXCHANGE RISK COVERAGE

Insurance that protects the supplier from a loss due to fluctuations in the exchange rate on foreign currency denominated contract or credits.

EXEMPT CARRIER

A carrier whose transportation is exempt from regulations.

EXEMPT CARRIAGE

The transport of commodities exempted from economics regulation by the Interstate Commerce Commission. Agricultural commodities is the largest single group of products exempted.

EXEMPT COMMODITY

A commodity exempt from regulation but usually only when no articles are being transported on the same vehicle.

EXEMPTION

The deduction of the cost or value of products of the Untied States which were assembled abroad in accordance with requirements of the Harmonized System of the United States subheading 9802.00.80, from the full value of the assembled article.

EXCISE TAX

A selective tax, sometimes called a consumption tax, on certain goods produced within or imported into a country.

EXIMBANK

The Export-Import Bank of the U.S. in Washington, DC. Promotes U.S. exports through the provision of direct loans, financial guarantees, export credit insurance, and discount loans.

EXONERATED CARGO

Merchandise that is usually dutiable, is permitted duty-free entry into certain countries in furtherance of a defined governmental policy. Usually such imports are raw material or unfinished article not locally available but deemed essential to local industry.

EXOTIC CURRENCY

A national currency for which there is not normally a strong demand in the foreign exchange markets. Examples: Egyptian pound, Guyana dollar, and the Nigerian naira.

EX PARTE

From one side or party. The ICC used this to designate many of its proceedings even though parties may take various positions pro or con.

EXPIRATION DATE

The final date upon which the presentation of documents and drawing of drafts under a letter of credit may be made.

EXPIRATION NOTICE

A notice in a tariff that all or some part of it will expire at a stated time.

EXPLANATORY NOTES

The four volume, 1600 page, chapter by chapter, heading by heading, explanation of what the Harmonized System Convention (HSC) and Customs Cooperation Council (CCC) consider to be covered by the various sections, chapters and headings. While the Explanatory Notes are not a part of the legal system, they represent the considered views of classification experts from the various member countries and have been approved by the CCC. The Explanatory Notes are similar to legislative history and expert technical advice.

EXPORT

To send goods to a foreign country.

EXPORT ADMINISTRATION ACT

See Export Control Act.

EXPORTATION

For purposes of Bond Cancellation “exportation” is the listing of the merchandise on the outward manifest or outward bill of lading, the inspectors certificate of lading, the record of clearance of the vessel or of the departure of the vehicle, and the production of a foreign landing certificate if the certificate is required by the district director.

EXPORTATION,COUNTRY OF

Merchandise imported from one country, being the growth, production, or manufacture of another country, shall for value purposes be treated as an exportation of the country from which it was immediately imported. However, if it appears by the invoice, bill of lading, or other evidence that the merchandise was destined for the U.S. at the time of original shipment, it shall be treated as an exportation of the country from which it was originally exported

EXPORT BROKER

One who brings together the exporter and importer for a fee and then withdraws from the transaction.

EXPORT COMMISSION HOUSE

A private firm that serves as the export department for several manufacturers, soliciting and transacting export business on behalf of its clients in return for commission, salary, or retainer plus commission.

EXPORT CONTROL

Export control sets forth regulations pertaining to procedures for the lawful exportation of used self-propelled vehicles, vessels and aircraft, and the penalties and liabilities incurred for failure to comply with any of the procedures.

EXPORT CONTROL ACT

An act of Congress passed in 1949 requiring that all commercial exports from the United States be licensed. Authority was granted to the president to restrict or suspend U.S. exports to protect the national security, protect short supplies, or further foreign policy objectives. The act was originally designed as a temporary measure but was extended in 1951, 1953, 1956, 1958, 1960, 1962 and 1965. In 1969, it was superseded by the Export Administration, which continued substantially the form and practices of earlier act; this legislation was extended in 1972, in 1974, and again 1984.

EXPORT CONTROL STATEMENT To the Top

A statement required to be shown on the shipping documents of virtually all commercial exports leaving the U.S. “These commodities licensed by the United States for ultimate destination (name of country). Diversion contrary to U.S. law prohibited.

EXPORT COUNSELING

Individual counseling by trade specialist at U.S. & Foreign Commercial Service (US&FCS) district branch office. In addition, walk-in appointments are available at the International Trade Administration (ITA), Washington, DC branch office, where you can also schedule appointments with other Department of Commerce officials.

EXPORT CREDIT AGENCY (ECA)

Governmental, semi-governmental, or private agency established for the purpose of facilitating exports through the provision of insurance, guarantees, and/or funding, or funding support.

EXPORT DECLARATION

A government (U.S. Department of Commerce) document permitting designated goods to be shipped out of the country.

EXPORT DUTY

A tax imposed on exports. It serves as a source of government revenue and is imposed by some countries on a limited number of products. Export duties are expressly forbidden by the U.S. Constitution.

EXPORT ENFORCEMENT ACT (EEA)

Passed in 1979 and subject to periodic congressional amendments, the EEA establishes export procedures for licensing, documenting and qualifying goods and services.

EXPORT IDENTIFICATION NUMBER (EIN)

A number issued by the IRS, either a Federal Employer Identification Number for corporations or Social Security number for an individual, that exporters are required to show on the Shipper’s Export Declaration.

EXPORT LICENSE

The basic tool used to ensure compliance with export controls established by Congress. Responsibility for compliance rest with the shipper. Non-compliance may be considered criminal and could result in severe penalty including fines and imprisonment.

EXPORT LICENSE APPLICATION AND INFORMATION NETWORK (ELAIN)

Refers to the Bureau of Export Administration’s electronic submission service that enables firms to submit applications for an export license electronically through the CompuServe network. This service can reduce the export process from two weeks to three days.

EXPORT LICENSE VOICE INFORMATION SYSTEM (ELVIS)

An automated attendant answering (202) 377-4811 and provides recorded information on range of topics.

Press 1 for information on STELA

Press 2 for information on obtaining commodity classifications

Press 3 for information on emergency or special licenses

Press 4 for information and ordering forms and publications

Press 5 for update on latest regulations

Press 6 for update to table of denial orders

Press 7 for information on seminar programs

Press 8 for export licensing fax numbers list

Press 9 to switch to main menu

Press 0 to speak to export counselor

EXPORT MANAGEMENT COMPANY

A firm which acts as local export sales agent for several non-competing manufacturers.

EXPORT MERCHANT COMPANY

A company that buys products directly from manufacturers, then packages and marks the merchandise for resale under its own name.

EXPORT PRIVILEGES

The opportunity afforded by the U.S. Government to engage in export transactions. The Export Control Act and its successor Export Administration Act have provided that all exports are under authority of license, requiring no prior approval, therefore exporting is a privilege subject to withdrawal by the government. Persons and firms found to have violated export control laws may be denied export privileges.

EXPORT PROCESSING ZONE

A special type of Foreign Trade Zone. A manufacturer within the zone may import equipment and raw materials duty-free for goods that are ultimately exported as finished products. Other concessions may include tax abatement on profits derived from export sales or relaxation of minimum wage scales.

EXPORT QUOTAS

Specific restrictions or ceilings imposed by an exporting country on the value or volume of certain imports, designed to protect domestic producers and consumers from temporary shortages of the goods affected or to bolster their prices in world markets.

EXPORT RESTRAINTS

Quantitative restrictions imposed by exporting countries to limit exports to specified foreign markets, usually pursuant to formal or informal agreement concluded at the request of importing countries.

EXPORT SUBSIDIES

Government payments or other financially quantifiable benefits, such as tax relief to encourage export sales. The use of such devices is apt to be regarded as undesirable by the importing nation and may result in the imposition of countervailing duties, to negate the effect of the subsidy.

EXPORT TARIFF

A tax or duty issued by governmental authority on the exportation of a product. These taxes on exports have been abolished by all major trading nations but are still retained by some developing nations.

EXPORT TRADING COMPANY (ETC)

A corporation or other business unit doing business in the United States, organized and operated principally for the purpose of exporting goods or services produced in the United States, or of providing export related services to other companies. It can be owned by foreigners and can import, barter, and arrange sales between third countries, as well as export.

EXPORT TRADING COMPANY ACT

The law passed on October 8, 1982, designed to encourage the formation of Export Trading Companies. It established an Office of Export Trading Company Affairs in Commerce, permitting bankers’, banks and holding companies to invest in ETCs, reduced the restrictions on export financing provided by financial institutions, and modified the application of the antitrust laws to certain export trade.

EXPORT VALUE

The price at which a foreign manufacturer customarily freely offers for sale a given product for export to the United States in the usual wholesale quantities, less export discounts, packing, and costs of preparing the goods for export. The use of this value principle has been negated by the Trade Agreement Act of 1979.

EXPRESS CONSIGNMENT OPERATOR OR CARRIERS

Is an entity operating in any mode or intermodally moving cargo by special express commercial service under closely integrated administrative control. Its services are offered to the public under advertised, reliable timely delivery on a door-to-door basis. An express consignment operator assumes liability to Customs for the articles in the same manner as if it is the sole carrier.

EXPROPRIATION

The seizure of private property by the State. Most countries have legal provisions allowing state agencies to take private property for public purpose usually upon payment of compensation.

EXTENSION

An additional period granted by the drawer for payment of a draft when the drawee is unable or unwilling to make payment on the maturity date.

EXTERNAL DEBT

Cumulative debt owed to foreign institutions.

EXTRACTION RATE

The proportion, on a weight bases, between a finished or processed product and the raw material from which is was manufactured.

EX WORKS (EXW) To the Top

Means the seller’s responsibility is to make goods available at his premises (i.e., works, warehouse or factory). Seller is not responsible for loading goods in the vehicle provided by buyer, unless otherwise agreed. The buyer bears the full cost and risks involved in bringing the goods from works to the desired destination. This term represents the minimum obligation for the seller.

The cost factors normally included in an Ex Works price are merchandise value, marking cartons and export packing. All transportation cost will be Collect. EXW can be used with any mode of transportation.