Incoterms and shipping
EXW (Ex Works)
Definition
The seller makes the goods available at its own premises and the buyer handles everything else, including loading and export clearance.
EXW at a glance
- Transport
- Any mode
- Risk passes
- When the goods are placed at the buyer's disposal at the seller's premises, not loaded
- Insurance
- No obligation
EXW puts the least obligation on the seller. Risk passes when the goods are placed at the buyer's disposal at the named place, not loaded. The buyer arranges loading, transport, export clearance, import clearance and duties.
EXW is often a poor fit for international chemical trade, because a foreign buyer usually cannot act as the exporter in the seller's country and dangerous goods need the shipper to sign declarations. FCA at the seller's premises is usually a better choice.
Related terms
- Incoterms 2020The ICC's eleven standard trade terms that set who pays for and bears the risk of each step of delivery.
- FCA (Free Carrier)The seller clears the goods for export and hands them to the buyer's carrier at a named place.
- FOB (Free on Board)The seller delivers the goods on board the buyer's vessel at the named port of shipment, cleared for export.
- CIF (Cost, Insurance and Freight)Like CFR, with the seller also buying minimum cargo insurance for the voyage.
- DAP (Delivered at Place)The seller bears costs and risk until the goods arrive at the named destination, ready for unloading.
- DDP (Delivered Duty Paid)The seller delivers to the named destination, cleared for import with duties and taxes paid.