ovrseasEXW: Ex Works
E-group rule · any mode of transport · Incoterms® 2020
EXW (Ex Works) means the seller only makes the goods available at its own premises or another named place; the buyer loads them, clears them for export and pays every cost from there. Risk passes as soon as the goods are placed at the buyer’s disposal, before anything is loaded.
- Risk passes
- When the goods are placed at the buyer’s disposal at the seller’s premises — before anything is loaded.
- Main freight
- Paid by the buyer
- Insurance
- Neither side is obliged to insure — agree who does
- Customs
- Export: Buyer · Import: Buyer
Who pays what under EXW
| Export clearance | Buyer |
|---|---|
| Carriage to port / terminal | Buyer |
| Loading onto main carriage | Buyer |
| Main carriage (freight) | Buyer |
| Insurance | Neither obliged |
| Unloading at destination | Buyer |
| Import clearance | Buyer |
| Duties and import taxes | Buyer |
How to write EXW on your documents
The rule is only complete with its named place. The seller’s premises or another named place in the seller’s country — the factory or warehouse address.
EXW Seller’s warehouse, 15 Sinho-ro, Busan, Korea — Incoterms® 2020
Write it the same way on the quotation, the proforma, the commercial invoice and the shipping instructions — a different place on one document is a different deal.
Use EXW when
- The buyer has its own forwarder or office in the seller’s country and can handle export there.
- Domestic sales, where there is no export clearance at all.
- The seller wants the least possible involvement and the buyer accepts it knowingly.
Think twice when
- The buyer cannot legally clear goods for export in the seller’s country — most foreign buyers cannot. Use FCA.
- The seller’s staff will load the truck anyway: under EXW loading is not the seller’s job, so damage while loading sits in a grey zone. FCA at the seller’s premises makes loading the seller’s.
- The seller needs export evidence (for example to zero-rate VAT) — under EXW the export papers are in the buyer’s hands.
The buyer is formally responsible for export clearance in their supplier’s country, which they often cannot legally do. FCA usually fixes this.
Questions about EXW
- What does EXW mean in shipping?
- EXW (Ex Works) means the seller only makes the goods available at its own premises or another named place; the buyer loads them, clears them for export and pays every cost from there. Risk passes as soon as the goods are placed at the buyer’s disposal, before anything is loaded.
- Where does risk pass under EXW?
- When the goods are placed at the buyer’s disposal at the seller’s premises — before anything is loaded.
- Who pays the freight under EXW?
- The buyer pays the main carriage and every other cost from the seller’s premises. The seller only makes the goods available — and helps with export papers if the buyer asks, at the buyer’s cost.
- Who pays import duties under EXW?
- The buyer. Import clearance, duties and taxes are the buyer’s under every rule except DDP.
- Can EXW be used for containers or air freight?
- Yes. EXW works for any mode of transport, including containers, air, road and rail.
The documents where EXW is written
- Commercial invoice template
Customs and the buyer’s bank read the Incoterm here; it decides which costs belong in the invoice value.
- Proforma invoice template
The buyer opens a letter of credit or pays a deposit on these terms — the same rule must follow through.
- Quotation template
A price means nothing without its rule: «USD 12.50 FOB Busan» and «USD 12.50 DAP Dallas» are different offers.
Compare EXW with
Incoterms® is a registered trademark of the International Chamber of Commerce. This page is an independent summary of how costs and risk are allocated and is not affiliated with or endorsed by ICC. For contract drafting, use the official Incoterms® 2020 rules published by ICC.