What is EXW (Ex Works)?
Ex Works (EXW) is the Incoterms rule with the least obligation on the seller. The seller makes the goods available at their own premises or another named place, and everything from that point — loading, transport, export clearance, duties, insurance — is the buyer's responsibility.
At a glance
| Term | EXW (Ex Works) |
|---|---|
| Definition | Incoterms rule with the seller's minimum obligation: goods are made available at the seller's premises, and the buyer bears every cost and risk from collection to destination — loading, export clearance, freight and insurance included. |
| Category | Logistics & delivery |
| Related terms | Incoterms, FOB, CIF, DDP, B/L (Bill of Lading), Laycan, Demurrage |
What it is used for
EXW suits domestic sales and buyers with their own logistics capability in the seller's country. It gives the seller a clean price with no transport exposure, and gives the buyer complete control of the chain.
Key points
- Delivery occurs when goods are placed at the buyer's disposal at the named place, not loaded.
- Risk passes to the buyer at that moment, before the goods move.
- The buyer handles export formalities, which is awkward when the buyer is not established in the seller's country.
- Works with any transport mode.
What to watch for
- Strictly, the seller is not even obliged to load the goods onto the buyer's vehicle. Agree loading in writing if you expect it.
- A buyer who cannot legally act as exporter in the seller's country will struggle with EXW. FCA is usually the better rule.
- An EXW price looks much lower than a delivered price for the same cargo — compare landed cost, not the headline.
Frequently asked questions
Who loads the goods under EXW?
Formally the buyer. In practice sellers often load as a courtesy, but if it matters, write it into the contract.
Who handles export customs under EXW?
The buyer, which is why EXW is often unsuitable for international sales. FCA moves that obligation back to the seller.
Is EXW good for the seller?
It minimises the seller's obligations and risk, but it also means the seller cannot easily evidence export, which can matter for VAT and sanctions compliance.
Related terms
Lodfy verifies every company on the platform — registration, ownership and sanctions screening — before they can trade.