Ex-Works Breach

Factory Responsibility

Vendors meet ex-works obligations strictly by presenting cleared goods at their own facility floor or loading dock. A manufacturer commits an ex-works breach if goods fail pre-shipment quality checks or lack required export packing lists. Under Incoterms rules applied in Chinese courts, the seller has no obligation to load goods onto the buyer vehicle unless explicitly stated in supplementary clauses.

If factory staff improperly load cargo without contractual agreement and cause product damage, the manufacturer assumes liability for negligence under general tort provisions.

Buyer Default

Foreign buyers assume full responsibility for inland transport, export customs clearance and freight booking from the factory gate. When a buyer delays dispatching trucks to collect ready cargo, the factory incurs warehouse congestion and risk of loss transfers to the purchaser after formal notice. Failure by the buyer to secure Chinese export licenses or complete customs declarations constitutes a material ex-works breach.

Under article 580 of the PRC Civil Code, the factory may demand immediate collection or charge documented daily storage fees against the buyer deposit. If the buyer abandons the cargo at the manufacturing site, the seller gains statutory authorization to auction the goods to recover unpaid storage charges and damages.

Judicial Remedy

Contractual remedies for delivery failure depend on formal default notices and documented financial losses. Chinese maritime courts evaluate ex-works breach claims by reviewing factory gate logs, collection appointment emails and export customs entry filings. Sellers can legally rescind the sale contract and retain security deposits if buyer default exceeds thirty calendar days.

Buyers proving supplier non-performance can recover advance payments alongside excess trucking expenses incurred due to delayed factory access.