Ex Works (EXW)
Ex Works (EXW) is an Incoterm used in international trade that signifies the seller’s minimum obligation. Under EXW, the seller makes the goods available at their premises (warehouse, factory, etc.) for the buyer to collect. The seller is not responsible for loading the goods onto any vehicle or for clearing the goods for export.
Under EXW, the buyer assumes all risks and costs associated with transporting the goods from the seller’s location, including loading, shipping, customs clearance, and unloading at the final destination.
Examples:
- A manufacturer in Germany sells machinery to a buyer in Brazil under EXW terms. The machinery is made available at the manufacturer’s facility in Germany, and the Brazilian buyer is responsible for all transportation and export documentation.
- A furniture producer in Italy offers a collection of chairs on an EXW basis. The buyer, located in the UK, arranges for a freight forwarder to pick up the chairs directly from the Italian warehouse.
Cases:
- A small business importing electronics from a supplier in China under EXW faces challenges in understanding local customs regulations, resulting in delays and unexpected fees during transit.
- A Multinational Corporation purchasing raw materials from a local vendor might prefer EXW to minimize their Liability, allowing them to handle logistics through their established shipping networks.