Under EXW the seller makes the goods available at its premises, packed but not loaded or cleared for export. The buyer takes on every cost and risk from there.
EXW Ex Works
Any mode of transport
| Step | EXW |
|---|---|
| Export packing and marking | SellerRisk passes to the buyer here |
| Loading at the seller's premises | Buyer |
| Export customs clearance | Buyer |
| Transport to the port or terminal | Buyer |
| Terminal charges and loading at origin | Buyer |
| Main carriage (ocean or air freight) | Buyer |
| Cargo insurance | Not required by the rule |
| Unloading at destination terminal | Buyer |
| Transport to the named place | Buyer |
| Unloading at the named place | Buyer |
| Import clearance, duties and taxes | Buyer |
EXW (Ex Works) is the Incoterms rule with the least work for the seller. The seller packs the goods and places them at the buyer's disposal at the named place, usually its own factory or warehouse, on the agreed date. The goods are not loaded onto the buyer's vehicle and not cleared for export. From that moment, every cost and every risk belongs to the buyer.
| Seller | Buyer |
|---|---|
| Supplies goods and a commercial invoice as agreed | Collects the goods from the named place |
| Packs and marks the goods for transport | Loads the goods, at its own risk |
| Tells the buyer when and where the goods are ready | Clears the goods for export and pays export fees |
| Helps the buyer get export documents and information, at the buyer's cost | Pays all transport, insurance, import clearance, duties and taxes |
A furniture maker in Ho Chi Minh City sells "EXW Factory, Binh Duong, Vietnam, Incoterms® 2020". The buyer's forwarder sends a truck, loads the container, files the Vietnamese export declaration in the buyer's name, books the ship and handles import in Germany. If a crate is dropped while being loaded at the factory, that loss is the buyer's, even though the factory's forklift did the loading.
EXW suits domestic sales, collections by a buyer who has its own staff or registered agent in the seller's country, and sellers who do not want any part of the logistics. It works badly for most international sales:
For international sales, FCA named at the seller's premises is usually the better choice: the seller loads and clears export, and the buyer still arranges the transport.
An EXW price is the lowest number on a quote, but not the lowest cost. Add loading, export clearance, inland transport, freight, insurance, duty and import charges to reach the landed cost before you compare it with an FOB, CIF or DAP offer.
Whatever the rule, the seller provides a commercial invoice that names the Incoterm and place, and usually a packing list. For quotes before the order, use a proforma invoice with the same rule written on it.
EXW means Ex Works. The seller makes the goods available at its premises or another named place, not loaded and not cleared for export, and the buyer bears all costs and risks from there.
The buyer. Under EXW the buyer must clear the goods for export, which can be difficult when the buyer is not registered in the seller's country.
Loading is the buyer's job and risk under EXW. If the seller loads as a favour, any damage during loading is still at the buyer's risk unless the contract says otherwise.
For international sales FCA is usually better. The seller loads at its own premises and clears the goods for export, which avoids the export and tax problems EXW can create.
Yes. The seller must package the goods suitably for transport at its own cost, unless the goods are normally shipped unpacked or the contract says otherwise.