EXW (Ex Works) is one of the most basic terms in Incoterms. It means the seller completes delivery by placing the goods at the buyer's disposal at the seller's premises (such as a factory or warehouse). The seller is not responsible for loading, export customs clearance, or transportation; the buyer bears all costs and risks from the moment the goods are picked up at the seller's premises. Usage scenarios: often used when the buyer has strong logistics capabilities or wants full control over the transportation process, or when the seller is unwilling to handle export procedures. Notes: 1) The seller should ensure the goods are packed suitably for transport but has no obligation to load; 2) The buyer must handle export customs clearance itself; if the buyer cannot do so directly, FCA is recommended instead; 3) The risk transfer point is at the seller's premises, and the buyer must pick up the goods promptly; 4) Unlike terms such as FOB and CIF, under EXW the seller has the minimum responsibility and the buyer has the maximum responsibility. Difference: Under FCA, the seller is responsible for export customs clearance and loading, while under EXW the seller only needs to make the goods available. Therefore, EXW is suitable for domestic trade or scenarios where the buyer is familiar with export procedures, but attention must be paid to export customs declaration issues.
📝 Examples
1. We signed an EXW term with the supplier, and we arranged our own truck to pick up the goods at the factory and handle export customs declaration. (Note: The buyer is responsible for pickup and export customs clearance.)
2. According to the EXW term, the seller only needs to hand over the goods to the carrier designated by the buyer at the warehouse, and all subsequent costs and risks are borne by the buyer. (Note: The risk transfer point is at the seller's warehouse.)
💡 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