Maximum buyer responsibility — seller only makes goods available at their premises.
Ex Works (EXW) is the Incoterm that places the least obligation on the seller. The seller's only duty is to make the goods available at their own premises (factory, warehouse, or other named place). The buyer is responsible for all costs and risks from that point forward: loading the goods onto a vehicle, export customs clearance, main international freight, insurance, import customs clearance, and delivery to the final destination. EXW is rarely appropriate for inexperienced buyers shipping from foreign countries because export clearance must be handled by the buyer — even though they may not have authority to act as the exporter of record in the seller's country.
EXW suits experienced buyers who have their own logistics operations or freight forwarder in the seller's country. It's common in domestic transactions where both parties are in the same country and no export formalities are needed. Also used when the buyer wants full control and transparency over all freight costs.
Avoid EXW if you are the seller and want proof of export for VAT zero-rating — under EXW the buyer handles export, so you may have difficulty obtaining the export declaration. Also avoid if the buyer is inexperienced or located in a country where they cannot appoint an export agent. For most international courier shipments, use FCA or DAP instead.
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.
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