EXW

What Is EXW (Ex Works) in Incoterms® 2020？

EXW (Ex Works) is one of the basic terms under the Incoterms® 2020 rules, published by the International Chamber of Commerce (ICC). EXW places the minimum obligation on the seller and the maximum responsibility on the buyer. It specifies that the seller fulfills their duty by making the goods available at their premises (factory, warehouse, etc.), while the buyer is responsible for all subsequent costs and risks.

Seller’s Responsibilities

• Delivery of Goods: Provide goods at the agreed time and designated location, ensuring that they meet the contract’s specifications (such as quality and quantity).
• Packaging: Ensure the goods are packaged suitably for transport, taking into account the known mode of transport, destination, and other relevant requirements.
• Documentation: Issue the commercial invoice and any other necessary compliance documents (e.g., certificate of conformity).
• Notification: Inform the buyer of the specific time and place where the goods are ready for pick-up.
• Optional Assistance: Upon the buyer’s request, and at the buyer’s risk and expense, assist in obtaining export-related documents (such as licenses or permits).

Buyer’s Responsibilities

• Collection of Goods: Collect and take possession of the goods at the seller’s business premises or another specified location within the agreed timeframe.
• Transportation: Arrange and pay for all logistics costs from the collection point to the final destination (including road, sea, or air freight).
• Customs Clearance: Handle both export and import customs procedures, including the payment of applicable duties, taxes, and handling fees.
• Insurance: Arrange cargo insurance to cover transport risks.
• All Transportation Costs: Bear all expenses incurred after delivery, including loading charges, international freight, warehousing fees, inspection costs, etc.
• Risk: Assume all risks of loss or damage to the goods as soon as they are ready and placed at the buyer’s disposal by the seller.

EXW Responsibilities Table

Key Notes

• Best for experienced buyers: EXW is ideal when buyers can handle all international logistics, documentation, and customs in the seller’s country.
• Risks for inexperienced buyers: If the buyer cannot efficiently manage export procedures, other Incoterms like FCA may be more suitable.

Incoterms 2020: Core Points Comparison Table

Term	Applicable Mode of Transport	Point of Risk Transfer	Seller's Responsibility	Buyer's Responsibility
EXW	Any mode	Upon delivery at seller’s premises	Only makes goods available; not responsible for transportation, clearance, or insurance	Responsible for all transportation, clearance, insurance costs, and risks
FCA	Any mode	Upon delivery to the carrier	Handles export clearance, delivers goods to carrier	Arranges transportation, pays all subsequent charges, assumes risk
CPT	Any mode	Upon delivery to the first carrier	Pays carriage to named destination, handles export clearance	Responsible for unloading at destination, import clearance, insurance costs, and risks
CIP	Any mode	Upon delivery to the first carrier	Pays carriage and insurance to named destination, handles export clearance	Responsible for unloading at destination, import clearance, assumes remaining risks
DAP	Any mode	Upon delivery at destination (not unloaded)	Bears costs and risks to the named destination, not responsible for unloading	Responsible for unloading, import clearance, and all related costs and risks
DPU	Any mode	After unloading at destination	Bears costs and risks for transportation and unloading at destination	Responsible for import clearance costs and risks
DDP	Any mode	Upon delivery at destination (duty paid)	Bears all costs (including import duties and taxes) and risks	Only needs to receive the goods
FOB	Sea / Inland waterway	When goods are loaded on board the vessel	Handles export clearance, pays loading charges	Arranges main carriage, pays freight and insurance, assumes risk post-loading
CFR	Sea / Inland waterway	When goods are loaded on board the vessel	Pays carriage to port of destination, handles export clearance	Handles insurance, import clearance, assumes risk after loading
CIF	Sea / Inland waterway	When goods are loaded on board the vessel	Pays carriage and insurance to destination port, handles export clearance	Responsible for import clearance, assumes risk after loading

Source: ICC Incoterms® 2020 – EXW Rule