Ex-factory Price (EXW) is a commonly used price term in international trade, referring to the price at which the seller delivers the goods to the buyer at the seller's factory or warehouse. Under this term, the seller is not responsible for costs and risks after the goods leave the factory, including transportation, insurance, and export customs clearance; the buyer bears all costs and risks from the point of taking delivery at the seller's factory. This term is suitable when the buyer is capable of arranging transportation and export procedures itself, often seen when the buyer is a large multinational corporation or has its own logistics. Notes: 1. The specific factory address and delivery time must be clearly specified; 2. The seller is usually not responsible for loading, unless otherwise agreed in the contract; 3. Unlike FCA (Free Carrier), under which the seller is responsible for delivering the goods to a designated place and handling export customs clearance, the seller has less responsibility under Ex-factory Price. It has the same meaning as EXW (Ex Works), but the standardized term in Incoterms is EXW. When using it, the division of costs and the point of risk transfer should be clearly agreed upon to avoid disputes.
📝 Examples
1. We agree to trade on an ex-factory basis; you need to arrange a truck to pick up the goods at our factory and bear all subsequent costs. (Note: The seller is only responsible for delivery at the factory; the buyer bears pickup and subsequent costs.)
2. Since you have a branch in China, we can quote on an ex-factory basis, and your branch will handle export customs declaration and transportation. (Note: The buyer uses its own resources to handle export matters; the seller is not involved.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner