What is EXW(ex-work)?
The Incoterm that places the most responsibility on the buyer, EXW, or Ex Works, indicates an international trade contract in which the seller has the goods ready for pickup from an agreed on location and (often the seller’s factory) buyer is responsible for all operations including pickup, export responsibilities, and all transportation.
According to EXW Incoterms, what is each party responsible for?
Under EXW, the seller is responsible only for having the goods ready for pickup. Often the seller will help load the goods onto the vehicle, however, it is at the risk and cost of the buyer and it must be clearly documented in the contract of sale. Responsibility for both cost and risk transfers from the seller to the buyer as soon as the goods are ready for pickup.
The buyer, on the other hand, is responsible for loading the goods on the pickup vehicle, transportation to the port of origin, export costs and arrangements, main carriage, import costs and arrangements, and all transportation in the country of destination.
EX Works Responsibilities Summary Table
Buyers Responsibility | Sellers Responsibility | |
Loading, delivery to port, & export customs | Yes | x |
Unloading | Yes | x |
Loading at port of export | Yes | x |
Transit to destination | Yes | x |
Cargo insurance | Yes | x |
Unloading at port of import | Yes | x |
Loading truck at port of import | Yes | x |
Carriage to destination | Yes | x |
Import customs clearance | Yes | x |
TAX Import duties | Yes | x |
Under EXW, the seller is responsible only for having the goods ready for pickup. Often the seller will help load the goods onto the vehicle, however, it is at the risk and cost of the buyer and it must be clearly documented in the contract of sale. Responsibility for both cost and risk transfers from the seller to the buyer as soon as the goods are ready for pickup.
The buyer, on the other hand, is responsible for loading the goods on the pickup vehicle, transportation to the port of origin, export costs and arrangements, main carriage, import costs and arrangements, and all transportation in the country of destination.
When is EXW used?
EXW can be used across all modes of transport.
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