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Posted Wed, 27 Oct 2021 10:51:13 GMT by azpolic
Good morning. Scenario as follows: UK seller sales goods to EU customer but terms are EXW, He claims he is not responsible for customs clearance on UK site, but on the invoice there is information that the buyer is from EU and the destination is EU as well. Also, on the invoice information about origin of the goods "The exporter of the products covered by this document, (EORI number XXXXXXXXXXXXX), declares that, except where otherwise clearly indicated, these products are of UK preferential origin" My question is - why exporter is using EXW terms in this case? Who should sign direct representative authorisation to UK customs agent? Would that be importer from EU? Thank you.
Posted Wed, 27 Oct 2021 11:21:42 GMT by carol conway
The incoterms need to be agreed between both parties. We have seem this, the EU customer just doesn't understand the meaning of Ex works. If you look up details of incoterms, the UK seller does nothing it is just like a domestic sale, the EU buyer makes the export from UK to EU and import from UK to EU. In practise for most EU buyers it is impossible for them to make the export as they are not set up to do this in UK or can't find any agent in UK to act for them. Ex works is when the seller places the goods at the disposal of the buyer at the seller’s premises or at another named place (i.e., works, factory, warehouse, etc.). The seller does not need to load the goods on any collecting vehicle. Nor does it need to clear them for export, where such clearance is applicable.
Posted Wed, 27 Oct 2021 12:23:18 GMT by azpolic
Ok, thank you for your quick reply. I have also seen many cases where uk seller doesn't want to change the terms and says he prefers not to sell in this case? Feels like there is some sort of lack of information for exporters regarding Brexit changes or they scared somehow of this new situation? Don't really know what to think about it. Do I understand it correctly that in this case importer needs to find UK customs agent for indirect representation?
Posted Thu, 04 Nov 2021 14:28:38 GMT by HMRC Admin 20
Hi azpolic,

The terms of sale and in particular the incoterms are a commercial matter between buyer and seller.
If the goods are sold EXW then export declarations are the responsibility of the person taking the goods out of GB. 

Thank you.

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