EXW — Ex Works (Incoterms 2020)
EXW — Ex Works (Incoterms® 2020). Risk transfers when goods are placed at the buyer's disposal at the seller's premises (or another named place). seller has no obligation to load goods onto the collecting vehicle.. Freight NOT included. Insurance NOT included.Generate compliant EXW documents in 60 seconds. Free up to 3/month.
infoEXW at a Glance
Responsibilities
- Risk Transfer
- When goods are placed at the buyer's disposal at the seller's premises (or another named place). Seller has no obligation to load goods onto the collecting vehicle.
- Cost Responsibility
- Buyer bears ALL costs from seller's premises onward: loading, transport, export/import clearance, duties.
- Transport Mode
- Any mode (road, rail, air, sea)
- Freight Included
- No — buyer arranges main carriage
- Insurance Included
- No — buyer arranges if desired
- Category
- Departure (Seller's premises) (E)
When to Use EXW
- When the buyer wants maximum control over the entire logistics chain
- When the buyer has their own pickup arrangements and export clearance capability
- For domestic shipments or when buyer has a freight forwarder at origin
When NOT to Use EXW
- When the seller is better positioned to handle export customs clearance
- When the buyer is unfamiliar with the export country's procedures
- For air freight or containerized cargo (use FCA instead)
articleEXW Explained — Practical Guide
What EXW Means in Plain Language
EXW (Ex Works (Incoterms® 2020)) is an Incoterms® 2020 term in Category E — departure (seller's premises). Under EXW, the seller when goods are placed at the buyer's disposal at the seller's premises (or another named place). seller has no obligation to load goods onto the collecting vehicle.and does NOT pay for main carriage.
Step-by-Step: Who Does What
- Seller: Makes goods available at their premises.
- Export clearance: Buyer arranges export clearance.
- Main carriage: Buyer contracts & pays carrier from named place.
- Risk transfers: When goods are placed at the buyer's disposal at the seller's premises (or another named place). Seller has no obligation to load goods onto the collecting vehicle.. After this point, loss/damage is buyer's risk.
- Insurance: Buyer arranges own insurance if desired.
- Import clearance: Buyer arranges & pays for import clearance, duties, taxes at destination.
- Final delivery: Buyer unloads at destination.
Common EXW Mistakes to Avoid
- Using EXW for sea shipments — mode mismatch invalidates the term.
- Not naming the precise place/port — "EXW China" is invalid; use "EXW Shanghai" or "EXW Guangzhou".
- Assuming insurance is included when it's not — only CIP and CIF include seller-procured insurance.
- Confusing risk transfer with cost transfer — they happen at different points in C-terms.
- Missing "Incoterms® 2020" in contract — without edition, old 2010 rules may apply.
local_shippingCarrier Implementation Notes for EXW
local_shippingFedEx
- • Terms of Sale field: EXW + named place
- • Freight collect — buyer provides carrier account
- • Insurance: buyer's responsibility
- • Air waybill (12-digit FedEx / 1Z UPS / 10-digit DHL)
inventory_2UPS
- • Terms of Sale field: EXW + named place
- • Freight collect — buyer provides carrier account
- • Insurance: buyer's responsibility
- • Air waybill (12-digit FedEx / 1Z UPS / 10-digit DHL)
deployed_codeDHL
- • Terms of Sale field: EXW + named place
- • Freight collect — buyer provides carrier account
- • Insurance: buyer's responsibility
- • Air waybill (12-digit FedEx / 1Z UPS / 10-digit DHL)
downloadFree: Incoterms® 2020 Cheat Sheet (PDF)
One-page reference: all 11 terms, risk transfer points, cost matrix, when to use each. Perfect for your desk or forwarding team.
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