Incoterms 2020 · Any mode of transport

EXW (Ex Works) — meaning, responsibilities & when to use

Under EXW the seller simply makes the goods available at their premises and the buyer bears almost all cost and risk. Here's exactly what Ex Works means for buyer and seller.

EXWEx Works

EXW (Ex Works) is the Incoterm where the seller's only obligation is to make the goods available at their own premises. The buyer takes on virtually all cost and risk — loading, export clearance, freight, and import — making it the maximum-responsibility term for the buyer.

Where risk transfers

Risk passes to the buyer the moment the goods are placed at the buyer's disposal at the seller's premises (factory, warehouse), before loading.

Responsibilities

Who pays for what

Seller is responsible for

Packaging the goods for collection
Making the goods available at the named place

Buyer is responsible for

Loading the goods at the seller's premises
Export customs clearance and charges
Main carriage (freight) and insurance
Import customs clearance and duty
Delivery to the final destination

When to use it

When EXW makes sense

EXW suits buyers who want full control of the logistics chain (or have a forwarder who does), and sellers who want minimal involvement. It is often used for domestic-style sales or experienced importers, but places a heavy burden on the buyer.

FAQ

EXW — common questions

What does EXW mean?

EXW (Ex Works) means the seller makes the goods available at their own premises and the buyer is responsible for everything after that — loading, export clearance, freight, insurance, and import. It is the term with the least seller responsibility.

Who pays for export clearance under EXW?

The buyer is responsible for export customs clearance under EXW, which can be impractical when the buyer is in another country. For that reason, FCA is often recommended instead.

When should I avoid EXW?

EXW can be difficult for international buyers because they must handle export formalities in the seller's country. FCA is usually a better choice for genuine cross-border trade.

Other Incoterms