Incoterms Rules
EXW — Ex Works
EXW (Ex Works) is the simplest term, under which the seller has minimal obligations. The seller merely makes the goods available at their premises or warehouse, with no obligation to load the goods or handle export formalities. All costs and risks, including transportation, customs clearance, and delivery, are borne by the buyer. This approach is advantageous for the seller but places a significant burden on the buyer, especially in international trade.
Who does what
| Transport | Any mode |
|---|---|
| Export clearance | Buyer |
| Import clearance | Buyer |
| Main carriage paid by | Buyer |
| Insurance | Not required |
| Risk passes to the buyer | When the goods are placed at the buyer's disposal at the seller's premises, not loaded |
When to use it
Suits a buyer that has its own logistics in the seller's country and wants full control of the shipment. The seller only makes the goods available, so it is the simplest rule for the seller.
What to watch
The buyer must clear the goods for export, which is hard if it is not established in the seller's country. If the seller should load or handle export clearance, use FCA instead.