Ex-Warehouse

Ex-Warehouse

The term is used in the price quotation of goods. The meaning of ‘ex-warehouse’ is out of or in front of the warehouse and is used simply to indicate where delivery takes place. If the price is quoted to ex-warehouse it indicates that the buyer has to pay the transportation costs from the warehouse where goods are stored. The goods are supplied direct from the factory or warehouse. This term indicates that the buyer of a commodity will pay the charges for bringing goods from the place where they are stored. The seller is only required to safely package the goods, label them appropriately, and deliver them to a previously agreed-upon location, such as the seller’s nearest port. Buyer is responsible for loading the goods on truck or container at the seller’s premises, and for the subsequent costs and risks. So the responsibility of getting goods from the seller’s factory is with the buyer.

The term “Ex-Warehouse” or “Ex-Factory” means that the delivery of the goods is to take place at the seller’s factory or warehouse. It is an agreement between a buyer and a seller in which the seller delivers a good, at his own expense and risk, to a certain warehouse. Risk is a disadvantage that overtakes a thing sold including the attachment of a burden on the goods. Once it arrives at the warehouse, expense, and risk transfer to the buyer, who is responsible for transporting the goods from there. Once buyers have their goods, they are responsible for other risks, such as loading the goods onto trucks, transferring them to a ship or plane, and meeting customs regulations. Here the buyer appoints a shipping and freight forwarding company to collect goods from the seller’s factory to the buyer’s place including insurance of goods. In practice, it is not uncommon that the seller loads the goods on a truck or container at the seller’s premises without charging the loading fee. There was, therefore, no agreement to the contrary and the purchaser had to pay the duty. Some manufacturers may use the term Ex Factory, which means the same as Ex Works.