Incoterms
What is EXW?
EXW (Ex Works) explained — minimal seller obligation, buyer export clearance, and when factories quote EXW.
Under EXW the seller makes goods available at their premises; the buyer bears virtually all transport and export risks from that point.
Meaning and When to Use EXW
EXW (Ex Works) is an Incoterms® 2020 rule for international trade. EXW can be used for any mode; seller does not contract for carriage.
Always state the full format in contracts — e.g. "EXW Shanghai, Incoterms® 2020" — not the acronym alone.
Choose EXW based on who can best arrange carriage, insurance, and import clearance.
Division of Responsibilities, Risk, and Cost
Under EXW, responsibilities typically split as follows:
- Seller: Make goods available at named place (usually factory)
- Seller: Provide commercial invoice
- Seller: Assist with export packing if agreed
- Buyer: Load goods and arrange all export/import clearance
- Buyer: Pay all carriage from seller's premises
- Buyer: Bear all risks from collection onward
Risk passes when goods are placed at the buyer's disposal at the named place — often the factory gate.
Pricing and Cost Practice
EXW price is typically the lowest headline quote — add inland haulage, export fees, freight, and duties for true cost. Use EXW Calculator and Landed Cost Calculator.
Documents and Compliance
Buyer often needs export documents seller will not provide under strict EXW — clarify who files export declaration in China or other export countries.
Examples
Example — EXW Shenzhen factory
Unit price USD 12 EXW — buyer adds trucking USD 0.40, export USD 0.15, ocean USD 1.20 per unit.
Example — Buyer lacks export license
Overseas buyer cannot export from China — parties switch to FOB or FCA instead of pure EXW.
FAQ
- Who clears export under EXW?
- The buyer — unless parties agree the seller assists, which should be written in the contract.
- Is EXW common in China exports?
- Factories often quote EXW; trading companies frequently convert to FOB for overseas buyers.
- Does EXW include loading?
- Not unless specified — default EXW does not require the seller to load on collecting vehicle.
- EXW vs FOB for new buyers?
- FOB is usually easier for importers who do not have local export capability at origin.
- Can EXW be used internationally?
- Yes for any mode, but verify export compliance in the seller's country.
Conclusion
EXW minimizes seller logistics but shifts complexity to the buyer. Compare with FOB using our calculators before accepting EXW quotes.