EXWEx Works
EXW (Ex Works) means the seller only makes the goods available at its own premises or another named place, not loaded and not cleared for export; the buyer takes the risk and pays for everything from there, including export clearance.
Where EXW hands over
The orange marker is where risk passes to the buyer. Blue bars are the seller's, yellow the buyer's.
EXW at a glance
- Transport
- Any modeIncluding containers and multimodal
- Risk passes
- Seller's premises
- Main carriage
- Buyer paysand nominates the carrier
- Insurance
- No obligationthe party at risk usually insures
- Delivery point
- Goods placed at the buyer's disposal at the named place (usually the seller's premises), not loaded on any collecting vehicle.
| Job | Who |
|---|---|
| Export clearance | Buyer |
| Loading at origin | Buyer |
| Main carriage | Buyer |
| Insurance | No obligation |
| Unloading at destination | Buyer |
| Import clearance and duties | Buyer |
When to use EXW
Use EXW when
- The buyer has its own forwarder or export agent in your country
- Domestic sales, samples, or a buyer who collects in person
- You want the simplest possible obligation as seller
Avoid EXW when
- The buyer is foreign and cannot legally clear export
- You will load the truck anyway (use FCA)
- You need proof of export for VAT
Common EXW mistakes
Under EXW the buyer is responsible for export clearance in the seller's country, which a foreign buyer often cannot do legally. FCA at the seller's premises is usually the better fit.
Many sellers load the truck anyway, but if goods are damaged while the seller's forklift loads them, the risk was already the buyer's. Agree it in writing, or use FCA.
Because the buyer handles export, the seller may lack the export evidence it needs for VAT or tax purposes.
EXW beside its neighbours
FCA puts export clearance and loading at the seller's premises on the seller, which matches how most export sales actually work. Read about FCA.
All eleven rules
Incoterms® is a registered trademark of the International Chamber of Commerce (ICC). CartonMath is not affiliated with or endorsed by the ICC. This is a plain-language summary; the full rules are published by the ICC and the contract wording governs.
Common questions
What does EXW mean?
EXW (Ex Works) means the seller only makes the goods available at its own premises or another named place, not loaded and not cleared for export; the buyer takes the risk and pays for everything from there, including export clearance.
When does risk pass under EXW?
Goods placed at the buyer's disposal at the named place (usually the seller's premises), not loaded on any collecting vehicle.
Who pays the main freight under EXW?
The buyer arranges and pays the main carriage.
Who pays import duties under EXW?
The buyer clears the goods for import and pays any duties and taxes under EXW.
Can EXW be used for container shipments?
Yes. EXW works for any mode of transport, including containers and multimodal shipments.