Which Incoterm places the buyer at risk from the seller's premises?

• A. EXW
• B. FOB
• C. CIF
• D. DDP

Answer: (A)

In Ex Works the seller’s responsibility ends simply by making the goods available at their premises. From that moment, the buyer assumes all risk of loss or damage and must handle everything that comes after—loading, transport, export clearance, insurance, and any import formalities. That is why this term places the buyer at risk starting from the seller’s location. Other terms shift the risk later in the chain: for example, Free On Board transfers risk once the goods pass the ship’s rail at the port of shipment; CIF puts risk on board the vessel (and adds insurance during transit); Delivered Duty Paid keeps the risk with the seller until the goods arrive at the named destination with duties paid.