X-Works (EXW)
X-Works (EXW) is an Incoterm where the seller fulfills their obligation by making the goods available at their own premises or another named place. Once the goods are ready for pickup, the buyer takes full responsibility for the shipment. This includes all costs, risks, and arrangements from that point onward.
Under EXW, the seller is not responsible for loading the goods onto the buyer’s vehicle or clearing them for export. The buyer handles export customs formalities, transportation, insurance, and import clearance. This makes EXW the term with the least obligation for the seller and the highest responsibility for the buyer.
EXW is often used when the buyer has strong logistics capabilities or prefers full control over the transport process. However, it can be challenging in international trade, especially when export clearance regulations require the seller’s involvement. Clear coordination between both parties is essential to avoid delays or compliance issues.
Overall, X-Works offers maximum simplicity for the seller and full control for the buyer. It is best suited for domestic trade or experienced buyers who can manage complex logistics requirements. Understanding responsibilities clearly helps prevent disputes and operational gaps.
Frequently Asked Questions about X-Works (EXW)
Clear answers to the most common questions people have when learning about X-Works (EXW).
The buyer is responsible for all transportation, costs, and risks from the seller’s premises onward.
No. Export clearance is the buyer’s responsibility unless otherwise agreed.
It can be, but it requires the buyer to manage export formalities and logistics, which may be complex in some countries.