Incoterms Comparison

EXW vs FCA

EXW and FCA both put most of the logistics burden on the buyer, but they differ on one crucial point: who loads the goods onto the collecting vehicle.

EXWEx WorksFCAFree Carrier
Transport modeAny modeAny mode
Risk transfersAt seller's premises, before loadingWhen goods are delivered to the named carrier or place

Key Difference

Under EXW, the seller simply makes goods available at their premises — the buyer's carrier must arrange and perform the loading, and risk transfers before loading even begins. Under FCA, if delivery happens at the seller's premises, the seller is responsible for loading the goods onto the buyer's collecting vehicle, and risk transfers only once that's done — a small but practically significant difference for export customs and loading liability.

Use EXW when...

Your buyer has full control of collection logistics and prefers to handle loading themselves, or you want the absolute minimum obligation as a seller.

Use FCA when...

You want to avoid the export customs complications EXW can create (since the seller often has better standing to complete export declarations than a foreign buyer) while still keeping most of the transport burden on the buyer.

FAQ

Why do many trade advisors discourage using EXW for exports?

Under EXW, the buyer is technically responsible for export customs clearance in the seller's own country, which can be legally awkward or impossible for a foreign buyer to complete. FCA avoids this because the seller typically remains responsible for export clearance even when delivery happens at their own premises.

Does the seller load the truck under EXW?

No — under strict EXW terms, the seller only makes goods available; the buyer's carrier is responsible for loading. In practice, many sellers help with loading as a courtesy, but this isn't a seller obligation and any damage during loading is technically the buyer's risk under EXW.

Is FCA generally considered safer than EXW for international sales?

Yes — most trade finance and logistics experts recommend FCA over EXW for cross-border sales specifically because of the export customs issue, even though both terms put similar collection and freight burden on the buyer.

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