EXW — Ex Works

The buyer is responsible for loading, even though the goods are at the seller's premises. The seller has no obligation to assist with loading under EXW. If the seller does help, this is done at the buyer's risk and expense.

This is the key risk with EXW for sellers. Because the buyer handles export, the seller may not receive a copy of the export declaration in time (or at all) to support VAT zero-rating. Most tax authorities require proof of physical export. For this reason, many sellers in the EU prefer FCA over EXW.

No. Courier shipments are handled by the carrier from collection to delivery. Using EXW with couriers creates ambiguity about who is the exporter of record. FCA (named courier depot or seller's address) or DAP is the correct Incoterm for most courier shipments.

Under EXW, the seller's duty ends before the goods are loaded. Under FCA, the seller loads the goods onto the buyer's nominated carrier (or delivers them to a carrier's premises). FCA gives the buyer the same cost control as EXW but shifts the loading risk to the seller — and the seller retains the ability to export the goods themselves.

No. Insurance is entirely the buyer's responsibility under EXW. The buyer should arrange marine cargo insurance or courier shipping insurance before collection.

EXW stands for Ex Works. It is one of the eleven Incoterms 2020 trade terms. Under EXW, the seller's only obligation is to make the goods available at their named premises — a factory, warehouse, or farm. The buyer collects the goods and handles all costs and risks from that point: loading, export clearance, freight, insurance, import clearance, and delivery to the final destination.

A furniture manufacturer in Portugal agrees to sell 50 chairs on EXW Lisbon terms. The buyer (a retailer in Germany) sends their freight forwarder to collect the chairs from the factory. The forwarder loads the goods, files the Portuguese export declaration, arranges a truck to Germany, handles German import clearance, and delivers to the retailer's warehouse. The seller's involvement ends the moment the goods are made available at the factory gate.

The buyer pays all freight costs under EXW — including collection from the seller's premises, pre-carriage to the port or airport, main international freight, and delivery at destination. EXW is the Incoterm that places the maximum freight cost burden on the buyer. The seller's price typically reflects only the cost of producing the goods.

Risk transfers to the buyer as soon as the goods are made available at the seller's named premises — even before loading. If the goods are damaged while the buyer's truck is loading, that is the buyer's risk and expense. This early risk transfer is one of the reasons EXW can be problematic for inexperienced buyers or where goods are difficult to inspect before loading.

The buyer handles all export customs formalities under EXW. This means the buyer must either have an entity established in the seller's country that can act as exporter of record, or appoint a local customs broker. If the buyer cannot handle export clearance, EXW is not workable — FCA is the alternative that keeps export responsibility with the seller.

Yes. EXW is frequently used for domestic trade where no export formalities are needed. A buyer collecting goods from a local supplier's warehouse is effectively trading on EXW terms, even if the Incoterm is not explicitly stated. EXW is also common in raw materials and commodities markets where buyers operate their own transport fleets.

Incoterms 2020 is the current (eighth) edition of ICC's official international trade terms, effective from 1 January 2020. EXW appears unchanged in Incoterms 2020 — its core rule (seller delivers at their own premises, buyer takes all risk and cost from there) is the same as in previous editions. Incoterms 2020 added a note clarifying that EXW is not suitable where the buyer cannot handle export formalities in the seller's country.

An 'EXW price' is a quoted price that reflects only the cost of the goods at the seller's premises, with no freight, insurance, customs, or delivery costs included. Buyers must add all these costs to arrive at the true landed cost. When comparing quotes, always check whether the price is EXW, FOB, CIF, DDP, or another Incoterm, as this changes what is included.

EXW can technically be used for any transport mode. However, when goods are shipped by air, the seller typically has to bring goods to an airport cargo terminal — which goes beyond the seller's EXW obligation. In practice, FCA at the airport cargo terminal is the more appropriate Incoterm for air freight, as it clearly allocates responsibility for delivering to the air cargo facility.

The main risks for sellers using EXW are: (1) inability to obtain proof of export, which can block VAT zero-rating and expose the seller to domestic VAT liability; (2) disputes over condition of goods at the point of handover if the buyer claims damage occurred before loading; (3) reputational risk if the buyer fails to handle compliance properly in the seller's country. FCA mitigates all three risks.