EXW (Ex Works)
Definition
EXW is an Incoterm under which the seller simply makes goods available at its own premises, and the buyer is responsible for all transport, export and import clearance, and risk from that point onward. It places the minimum obligation on the seller.
In Practice
Ex Works is the mirror image of DDP. The seller's duty ends when goods are ready for collection at the factory or warehouse; the buyer arranges pickup, export documentation, main carriage, import clearance, and delivery. Risk transfers as soon as the goods are placed at the buyer's disposal, before they are even loaded.
Buyers with strong logistics organizations use EXW to control the entire chain and strip all freight markup out of the goods price. The practical friction is export clearance: the buyer must handle export formalities in the seller's country, which usually requires a local forwarder. For that reason FCA is often recommended instead.
A common example is a large importer with a consolidation program that buys EXW from many small factories in one region, then has its forwarder collect from each and combine cargo into full containers.
Related Calculators
Related Terms
Incoterms are standardized international trade terms published by the International Chamber of Commerce that define where responsibility, cost, and risk transfer from seller to buyer in a shipment. Common examples include EXW, FOB, CIF, and DDP.
DDP (Delivered Duty Paid)DDP is an Incoterm under which the seller is responsible for delivering goods to the buyer's named location with all transport, export and import clearance, duties, and taxes paid. It places the maximum obligation on the seller.
Freight ConsolidationFreight consolidation combines multiple smaller shipments into one larger load to reduce transportation cost per unit. Consolidated freight is later separated and delivered to individual destinations.
Freight ForwarderA freight forwarder is an intermediary that arranges international shipments on behalf of shippers, booking space with ocean and air carriers, preparing documentation, and coordinating handoffs along the route. Forwarders do not usually operate the ships or planes themselves.