HM Revenue & Customs: Guidance on ???Ex-Works??? Documentation

Article Date: 26 September 2012

Dealing on an Ex-works basis is a popular choice for any exporter. HM Revenue & Customs guide exporters on what’s involved in Ex-works and what documentation they should be using…

Ex-works: When a company sells goods but does not arrange the exportation of those goods, these are termed “ex-works” sales. The seller views the sales as being at the “factory gates” and the purchaser usually arranges removal and shipping of the goods. If a company established outside the Community has ownership or similar rights of disposal over the goods the contracting party in the Community is regarded as the exporter for Customs purposes.For example: Company A (established in the EU) sells goods to Company B (3rd Country Company) ex-works. Company B arranges for Company C (UK freight agent) to remove and ship goods to Company B outside the EU.

The export declaration would be completed as follows:

  • Box 2 — Exporter/Consignor: Company A
  • Box 14 — Declarant: Company C
  • Box 44 — Additional Information Company B

We would expect the agent to be an indirect representative for the third Country purchaser, as the third Country purchaser cannot legally be the declarant as it is not established in the EU.

Exporters would need to make provisions in their ex-works contracts to ensure that a copy of the export declaration is made available to them as they will have a continuing responsibility to ensure the export of the goods for VAT zero rating.

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