Watch: What Does EXW Mean in Shipping?
Watch this short video to understand how transportation costs, responsibilities and risks are generally divided between the seller and buyer under the EXW Incoterm.
Quick Overview
EXW stands for Ex Works. Under EXW, the seller prepares the goods and makes them available to the buyer at an agreed location, such as the seller’s factory or warehouse.
The buyer generally assumes responsibility for most of the journey, including loading, collection, export procedures, international transportation, import clearance and final delivery.
Video Transcript
“What does EXW mean in international shipping?
EXW, or Ex Works, gives the buyer responsibility for most of the shipping journey. The seller prepares the goods and makes them available at an agreed location, such as a factory or warehouse.
Under EXW, the buyer generally arranges and assumes the costs and risks for:
Loading and collection.
Export procedures.
Main transportation.
Import customs clearance.
Duties and taxes.
Final delivery.
Because the buyer may not be legally able to complete export clearance in every origin country, confirm local requirements before agreeing to EXW. FCA may be more practical when the seller needs to handle export formalities.
Calculate the complete transportation journey—not only the main freight—before choosing EXW.”
Learn More About EXW
This video provides a short introduction. Read the complete EXW Incoterm guide for a detailed explanation of delivery, costs, risks, export clearance and the differences between EXW and FCA.
You can also explore all Incoterms to compare the responsibilities assigned to buyers and sellers under different trade terms.
