Ex Works (EXW) (Incoterm)
Ex Works (EXW) is an Incoterm where the seller’s responsibility is minimal—they simply make the goods available at their premises, such as a warehouse or factory. From that point onward, the buyer takes full control of the shipment. This includes organizing transport, loading the goods, handling export procedures, arranging freight, and managing import clearance at the destination. EXW gives buyers maximum responsibility and flexibility.
Because the buyer handles nearly every step, EXW requires strong coordination on their side. They must arrange pickup, ensure proper export documentation, and manage compliance with local regulations. If the buyer is unfamiliar with the seller’s country, this can be challenging. Export paperwork, customs requirements, and local transport rules may vary widely. Clear communication is essential to avoid delays or disruptions.
EXW is often used when buyers want to use their own logistics network or when the seller prefers not to engage in transport arrangements. It is also common in domestic trade. However, for international shipments, EXW may not always be the most practical option. Buyers must ensure they have the resources and knowledge to manage every stage, starting from the seller’s door.
Overall, EXW provides a simple structure but places the majority of responsibility on the buyer. When both parties understand their obligations clearly, EXW can offer flexibility and control. But for inexperienced buyers, it may lead to unexpected costs and complications during export and import operations.
Frequently Asked Questions about Ex Works (EXW) (Incoterm)
Clear answers to the most common questions people have when learning about Ex Works (EXW) (Incoterm).
The seller only prepares the goods and makes them available at their premises. They are not required to load, arrange transport, or handle export procedures unless agreed otherwise.
Because buyers must manage export documentation, customs formalities, and local transport in a country they may not be familiar with, this can lead to delays or extra costs.
Not always. While it works for experienced buyers with strong logistics networks, many prefer other Incoterms where sellers handle at least part of the export process.