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Key takeaways
- Under EXW the seller makes the goods available at its premises or another named place. The buyer arranges everything from there.
- The buyer normally loads, handles export clearance, pays main carriage, import clearance and duties, and bears all risk.
- The price looks low because the seller does little. The cost shows up in the buyer's freight and clearance bills.
- If the buyer cannot clear goods out of the seller's country, FCA is usually a better fit.
Free PDF and Excel: Ex Works landed cost and responsibility checklist. Get it below
What Ex Works means
Ex Works is an Incoterms rule under which the seller delivers when it places the goods at the buyer's disposal at the seller's premises or another named place, not loaded onto any collecting vehicle and not cleared for export.
The seller's job ends at its own door. A common and costly misreading is that the seller will load the truck. Under the rule as published the buyer loads unless the contract says otherwise. Exports from many countries also need an exporter of record, and a foreign buyer often cannot be one.
A buyer in Kenya agrees EXW with a factory in Italy for 24 machine tools. The factory quotes a low price. The buyer then discovers it must book the truck, load the crates, find an exporter of record in Italy and pay for export clearance before any ocean freight starts.
The buyer's forwarder charges for each step. Landed cost ends up above a competing DAP quote that looked dearer at first sight.
Who does what
| Task | Seller | Buyer |
|---|---|---|
| Make goods available at premises | Yes | No |
| Loading on the vehicle | Only if agreed | Yes |
| Export clearance | No | Yes |
| Main carriage | No | Yes |
| Insurance | No obligation | Buyer's choice |
| Import clearance, duties, taxes | No | Yes |
| Risk from the named place onward | No | Yes |
Free PDF and Excel
Ex Works landed cost and responsibility checklist
A checklist to test whether EXW is safe, and a worksheet to compare an EXW quote with FCA and DAP offers.
- EXW responsibility table
- Risk checklist
- Landed cost comparison worksheet
- Excel comparison of three quotes
When EXW is a good idea
- The buyer has its own forwarder and presence in the seller's country.
- Goods are collected on a regular milk-run.
- Both sides are in a customs union with no export formalities.
- The buyer wants full control of the logistics chain.
When to use something else
- The buyer is overseas with no local agent. Use FCA at the seller's dock instead, so export clearance sits with the seller.
- The seller has the logistics skill and the buyer does not. Use CPT, DAP or DDP.
- The goods are sensitive or high value and you want delivery to be clear. A named place and a loading obligation avoid disputes.
See trade terms for the family, and FOB shipping point for the US domestic term people often mix up with these.
- The named place is a full address, not a city.
- Who loads is stated in writing.
- Export clearance is possible for the buyer, with an exporter of record.
- Forwarder quotes for loading, export clearance and main carriage are in.
- Insurance covers the whole journey from the named place.
- Landed cost was compared against an FCA or DAP quote.
Last checked: 19 October 2026. Reflects the structure of Incoterms 2020 published by the ICC. Confirm export rules with a local broker.
Frequently asked questions
Who loads the goods under EXW?
Unless the contract says otherwise, the buyer. The seller only places the goods at the buyer's disposal.
Who pays export duty under EXW?
The buyer arranges and pays for export clearance and any export duties, which is why FCA is often preferred for overseas buyers.
Is EXW suitable for international shipping?
It can be, if the buyer has a reliable forwarder in the seller's country. Otherwise FCA is safer.
When does risk pass under EXW?
When the goods are placed at the buyer's disposal at the named place.
How does EXW compare to FOB?
FOB is for sea and inland waterway only, and the seller loads the goods on board the ship. EXW puts that and more on the buyer.