EXW
Ex WorksEXW
Incoterms 2020
Any mode
At seller's premises (factory, warehouse, etc.)
Cost responsibility
Buyer pays everything from the moment goods are made available at seller's premises
Seller obligations
- S1Make goods available at named place
- S2Provide commercial invoice and packing list
Buyer obligations
- B1Collect goods from seller's premises
- B2All transport and insurance
- B3Export clearance
- B4Import clearance
- B5All duties and taxes
When to use EXW
When the buyer has strong logistics capabilities and wants maximum control over the supply chain. Common in domestic trade or when buyer has a local freight forwarder near the seller.
When NOT to use EXW
International trade where the seller is better positioned to handle export formalities. EXW places export clearance burden on the buyer, which is often impractical when the buyer is in another country.
Common mistakes with EXW
- !Buyer assuming seller will load the goods onto the truck (EXW technically doesn't require this)
- !Using EXW for international shipments where export clearance is difficult for foreign buyers
- !Confusing EXW with FCA — FCA is almost always better for international trade