Incoterms Rules
EXW vs FCA: what is the difference
Under EXW the seller only makes the goods available at its premises, with no loading and no export clearance. Under FCA the seller clears the goods for export and hands them to the buyer's carrier, and loads them if delivery is at the seller's premises.
Side by side
| EXW Ex Works | FCA Free Carrier | |
|---|---|---|
| Transport | Any mode | Any mode |
| Export clearance | Buyer | Seller |
| Import clearance | Buyer | Buyer |
| Main carriage paid by | Buyer | Buyer |
| Insurance | Not required | 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 the goods are handed to the buyer's carrier at the named place |
Which one to choose
EXW suits domestic sales and buyers that have their own presence in the seller's country. For international trade FCA is usually safer: export clearance stays with the seller, who is established in the country of export, and loading at the seller's premises is clearly the seller's task.