Where delivery happens
When the goods are placed at the buyer's disposal at the named place, not loaded onto any collecting vehicle and not cleared for export.
The seller
- Packs the goods and has them ready on the agreed date
- Provides the commercial invoice and help with information the buyer needs
The buyer
- Loading at the seller's premises
- Export clearance in the seller's country
- All main freight, insurance, import clearance, duty and GST/VAT
- All risk from the moment the goods are made available
When risk passes
Passes to the buyer at the seller's premises, before loading.
When to use EXW
Domestic sales, or when the buyer has its own forwarder in the seller's country and can legally handle export formalities there.
Watch out
The buyer usually cannot be the exporter of record in a foreign country, so EXW often causes export-clearance problems. FCA is usually the better choice for international sales.
Example
A Melbourne buyer's forwarder collects pallets from a factory in Ningbo. The buyer pays for loading, Chinese export clearance, ocean freight, Australian clearance, duty and GST.
How it appears on the invoice
Write the three-letter code, the named place and the rules version, for example EXW Ningbo (Incoterms® 2020). The full name is not needed on the document. In Vendara Trade Documents you pick EXW – Ex Works from the list and the invoice prints just EXW with your named place.
Frequently asked questions
What does EXW mean?
EXW stands for Ex Works (Incoterms® 2020). The seller makes the goods available at its own premises (or another named place). The buyer does almost everything else.
Where does risk pass under EXW?
Passes to the buyer at the seller's premises, before loading.
Who pays import duty and GST under EXW?
The buyer pays import clearance, duty and import GST or VAT.
When should I use EXW?
Domestic sales, or when the buyer has its own forwarder in the seller's country and can legally handle export formalities there.
← CIF – Cost, Insurance and Freight · All Incoterms · FCA – Free Carrier →