EXW — Ex Works

Mode of transport

Any mode

Definition

The seller delivers when it places the goods at the disposal of the buyer at the seller's premises or another named place (works, factory, warehouse), not cleared for export and not loaded on any collecting vehicle. EXW represents the minimum obligation for the seller and the maximum obligation for the buyer.

Delivery point

At the named place of delivery (usually the seller's factory or warehouse), goods at the buyer's disposal on the agreed date or period.

Risk transfer

Risk passes to the buyer at the moment the goods are placed at the buyer's disposal at the named place — before loading.

Seller costs

• Production, packing and marking suitable for the transport
• Making the goods available at the named place
• Checking operations (quality, measuring, weighing, counting)

Buyer costs

• Loading at the seller's premises
• Inland carriage, terminal handling, main carriage
• Export clearance, duties and taxes in the country of export
• Import clearance, duties, VAT and delivery to final destination

Insurance

No insurance obligation for either party. The buyer bears risk from the named place onwards and should insure from that point.

Export formalities

Buyer's responsibility. The seller must only assist, at the buyer's request, risk and cost, in obtaining documents and information needed for export.

Import formalities

Entirely the buyer's responsibility, including transit clearance.

Documents

• Commercial invoice
• Packing list
• Any document agreed as evidence of delivery
• Certificate of origin (if requested, at buyer's cost)

Best use cases

Suitable for domestic trade, ex-factory quotations and buyers with their own logistics agent in the seller's country. Not recommended for cross-border sales where the buyer cannot legally act as exporter.

Common mistakes

• Using EXW for export when only a locally registered exporter can file the customs declaration
• Assuming the seller must load the truck — it must not, unless separately agreed
• Failing to obtain export proof needed for the seller's VAT/tax exemption

Practical example

EXW Tehran Warehouse, Incoterms® 2020 — the buyer's forwarder collects 5 pallets of saffron from the seller's warehouse and handles everything thereafter.