EXW, or Ex Works, is an Incoterm where the seller makes goods available at its premises or another named place, such as a factory or warehouse. The buyer takes responsibility for loading, export clearance, main transport, insurance, import clearance, duties, taxes, and final delivery unless the contract says otherwise. EXW gives the seller minimal responsibility and places most cost and risk on the buyer, so it is often less practical for international shipments where the buyer cannot easily manage export formalities.
EXW (Ex Works) is an Incoterm under which the seller’s only obligation is to make goods available at their premises or another named place. The buyer bears all costs and risks of transport from that point forward, including export customs clearance, loading, international freight, insurance, and import duties.
Key Responsibilities Under EXW
- Seller: make goods available at the named place, ensure proper packaging
- Buyer: export clearance, loading at origin, international freight, insurance, import clearance, all duties and taxes
When EXW Is Commonly Used
- When the buyer has superior freight buying power and wants to control the full shipment
- When goods are being sourced from multiple suppliers and consolidated
- When the buyer wants to include freight costs in their standard procurement process
For related logistics context, see glossary entries on FOB, FCA, Incoterms, and Export Declaration.
