What is your analysis of the situations in the case? What is the core problem with this philosophy, and what are your recommendations?
A company is actively exporting various controlled electronic goods from the United States to customers in Japan, Germany, China, and Russia. At this time, they are selling and shipping exclusively under the Ex Works (EXW) Incoterms Rule. The philosophy of the company, expressed by the CEO, is We sell Ex Works and use the buyer’s forwarder as well. Therefore, we are not really exporting. The buyer is the exporter as well as the importer. Their forwarder is supposed to have the expertise to handle the exports. So if there are violations, then it is their problem. We have no responsibility or liability.”
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