Trade & Incoterms
EXW (Ex Works)
An Incoterm placing minimum obligation on the seller — goods are made available at the seller premises. The buyer bears all costs and risks from collection, including export clearance unless otherwise agreed.
In depth
EXW places the least obligation on the seller of any Incoterm. The seller makes the goods available at their own premises — factory, warehouse, or works — and does nothing else. The buyer arranges collection, loading, export clearance, main carriage, insurance, and import clearance, and carries risk from the moment the goods are placed at their disposal. Loading onto the collecting vehicle is technically the buyer's responsibility, which is a common source of dispute because the seller usually has the forklift. Because the buyer must complete export formalities in a country where they may have no legal presence, EXW is often a poor fit for international trade; FCA is normally the better choice.
Key points
- Minimum seller obligation; maximum buyer obligation
- Buyer handles export clearance, which is often impractical across borders
- Risk passes when goods are placed at the buyer's disposal, before loading
- FCA is usually the better alternative for cross-border sales