Warehouse

Customer-managed warehouse (Warehouse) in foreign trade terminology usually refers to a storage facility designated or managed by the buyer (customer), used to store goods delivered by the seller. This term is commonly found under trade terms such as FOB and EXW, indicating that after the goods are delivered at the designated warehouse, the risk and subsequent storage costs are borne by the buyer. Usage scenarios include: the buyer rents a warehouse for centralized procurement, LCL consolidation, or delayed shipment; or the buyer has its own warehouse in the exporting country to consolidate goods from multiple suppliers. Precautions: the seller must clarify the warehouse address, delivery time, cost allocation (such as inbound fees and storage fees), and the risk transfer point; if the warehouse is controlled by the buyer, the seller should obtain a receipt to avoid disputes. Unlike a 'seller-managed warehouse,' the latter usually refers to the seller setting up a warehouse in the destination country, which belongs to DDP or overseas warehouse models. The difference is: Warehouse emphasizes the buyer's control over the storage link, while Seller's Warehouse emphasizes the extension of the seller's responsibility. Foreign trade practitioners should accurately define the delivery point and risk transfer in accordance with Incoterms 2020.