Definition of the Incoterm EXW (Ex Works)

The EXW Incoterm requires the seller to make the goods available to the buyer at their own premises (factory, warehouse, office, etc.).

From that point forward, all costs and risks are the buyer’s responsibility.

• Current version: EXW remains unchanged in Incoterms 2020.
• Multimodal transport: Can be used with any mode (sea, air, road, rail).
• User profile: Best suited for experienced importers with local presence who can handle export formalities at origin.

Seller’s Obligations (EXW)

• Make the goods available at the agreed date and location
• Proper packaging and preparation for transport
• Provide necessary commercial documents (invoice, packing list, etc.)

Note: The seller is not responsible for loading the goods onto the buyer’s vehicle or for export customs clearance

Buyer’s Obligations (EXW)

• Payment for the goods as per the contract
• Loading and inland transport to the export customs point
• Export customs clearance and origin charges
• International freight
• Destination charges and unloading
• Import customs clearance and payment of VAT, duties, and taxes
• Inland transport to the final destination

Insurance under EXW Conditions

Insurance is not mandatory, but it is recommended that each party covers their segment of responsibility.

Alternatively, one party may choose to take out a comprehensive policy.

In any case, insurance terms should be clearly stated in the sales contract to avoid legal disputes.

Limitations and Risks of EXW

Conclusion

EXW is appropriate for buyers who have a reliable logistics network and local agents at origin.

For less experienced operations, it is advisable to consider FCA or other Incoterms that distribute responsibilities more evenly.