EXW (Ex Works)
Incoterm providing that the seller makes the goods available at their premises, with no obligation to load or clear for export.
Definition and Principle
EXW (Ex Works) is the Incoterm that imposes the minimum obligations on the seller. The seller makes the goods available at their premises (factory, warehouse, store) or another named place, without loading them onto the collecting vehicle or clearing them for export.
Allocation of Obligations
- Seller: make the goods available, suitably packaged, at the named place
- Buyer: arrange and pay for transport, loading, export and import clearance, insurance, and bear all risks from the point of delivery
EXW is the only Incoterm where export clearance falls on the buyer, which can cause practical difficulties in many countries where only a resident may perform this formality.
Transfer of Risks and Costs
Risk passes from seller to buyer when the goods are made available at the named place. The seller is not obliged to load the goods onto the vehicle. If the parties agree that the seller loads, this must be specified in the contract but remains at the buyer's risk unless otherwise stated.
Usage and ICC Recommendations
The ICC advises against using EXW for international trade due to the export clearance issue. FCA is generally preferred as it assigns export clearance to the seller. EXW remains relevant for domestic trade or when the buyer has a complete logistics organisation in the seller's country.