EXW (Ex Works) is the Incoterm that places the minimum obligation on the seller. The seller's only duty is to make the goods available, packaged for export, at its own premises (factory, warehouse, etc.) on the agreed date. From that moment, the buyer bears all costs and risks of moving the goods to the final destination.
Under EXW, the seller must:
- Have the goods ready for collection at the named place
- Provide the commercial invoice and any documentation called for in the contract
- Notify the buyer when goods are available
Under EXW, the buyer must:
- Arrange and pay for loading the goods at the seller's premises
- Arrange and pay for all transport (pre-carriage, main carriage, on-carriage)
- Handle export clearance in the seller's country, including any export licenses
- Handle import clearance in the destination country
- Pay all duties, taxes, and fees
- Bear all risk of loss from the moment the goods are placed at its disposal
EXW is generally not recommended for international transactions because the buyer is responsible for export formalities in a country where it likely has no legal presence. The ICC's preferred alternative is FCA, where the seller handles export clearance — a much cleaner allocation for cross-border sales.
EXW is sometimes used when the buyer has its own forwarder and wants total control over the supply chain, or for domestic-style transactions where export concerns don't apply. For U.S. customs valuation, EXW means the seller's price excludes essentially all transportation costs — so when calculating transaction value, buyers must add freight, insurance, and other dutiable charges according to CBP rules.