Ex Works (EXW)
Definition: What is EXW?
Ex Works (EXW) is an Incoterm that places the least amount of responsibility on the seller. Under EXW, the seller fulfills their obligation by making the goods available to the buyer at an agreed-upon time and place, such as a factory or warehouse, packed suitably for transport. Once the goods are made available, all risks and costs transfer to the buyer.
Seller’s responsibilities under EXW:
- Make the goods available at the named place as per contract
- Handle the costs of packaging the goods for transport
- Provide the necessary documents and information for transportation
- Notify buyer when goods are ready for collection at the agreed time and place
- Mark goods appropriately for transport requirements
Buyer’s responsibilities under EXW:
- Take delivery of the goods at the named location
- Organize and pay for the transport and insurance of the goods
- Handle import customs clearance and all related costs
- Ensure compliance with all export and import regulations
- Handle export customs clearance and formalities (buyer responsibility under EXW)
- Load goods onto transport vehicle at seller’s premises (at buyer’s risk)
- Provide evidence of receipt to the seller once goods are collected
When to use Ex Works (EXW)
EXW is suitable when the buyer wants full control over the entire shipping process, including organizing multi-modal transport (using any suitable means of transport) and managing all associated risks and costs from the seller’s location onward. It is ideal for sellers who wish to have minimal obligations in the shipping process. EXW is most appropriate for domestic transactions or when the buyer has local presence and can handle export formalities effectively.
Important considerations for EXW
- EXW places maximum responsibility on the buyer – buyer handles export clearance which can be problematic for foreign buyers
- For international transactions, FCA is often recommended instead of EXW to avoid export compliance complications
- Seller is not obligated to load goods onto buyer’s vehicle, but may do so at buyer’s risk
- Insurance arrangements must be made by the buyer as no party is obligated to insure under EXW
- Buyer must be capable of handling export procedures at seller’s country, or risk legal complications
- Risk transfers when goods are made available, not when they are loaded or collected
How time:matters supports EXW shipments
Under EXW, the buyer is responsible for the entire transportation process from the seller’s location. For buyers managing EXW shipments, time:matters offer comprehensive support by taking over the entire logistics chain. We provide seamless organization of pickup from the seller’s premises and manage the complete onward journey. Our services give buyers full visibility and control through real-time tracking and an expert express network, ensuring that the shipment is handled reliably and efficiently from start to finish, minimizing risks and preventing potential delays.