EX Works (EXW) looks simple on paper. Seller makes goods available at their premises and the buyer handles everything else. In real deals, EXW is where disputes start: export compliance gets messy, proof of export is weak, and insurance and risk transfer are routinely misunderstood.
Under EXW, the seller’s delivery obligation is met when the goods are made available to the buyer at the seller’s premises or another named place, not loaded on the collecting vehicle and not cleared for export unless the parties agree otherwise.
| Topic | Seller (EXW) | Buyer (EXW) |
|---|---|---|
| Packaging and marking | Provides goods packaged as required by the sale contract | Confirms specs, labeling requirements, and any compliance marks |
| Loading at pickup | Not required to load (unless contract adds it) | Arranges and bears loading risk and cost |
| Export customs clearance | Not required (unless contract adds it) | Arranges export filing, licenses, and exporter-of-record mechanics |
| Main carriage | No obligation | Books freight and manages route, carrier, and cutoffs |
| Insurance | No obligation | Chooses cover level and pays premium |
| Import clearance and duties | No obligation | Handles import filing, duties, VAT, and broker fees |
| Proof of delivery/export | Limited by design unless contract requires support | Maintains document trail and proof for tax and compliance |
Risk transfers when the seller makes the goods available to the buyer at the named place. That sounds clean, but the “named place” needs to be written precisely. “EXW seller warehouse” is not enough. Specify the address, collection window, and whether loading assistance is provided. If the goods are damaged during loading and the contract is silent, the buyer usually wears it.
In many jurisdictions, the exporter of record must be locally established or must meet specific licensing and compliance obligations. EXW pushes export filing onto the buyer, who may not be able to legally act as exporter in the seller’s country.
Sellers often need proof of export to support zero-rating or VAT treatment. With EXW, the seller may not control the transport documents and can be left without clean proof, creating tax exposure and disputes over who should provide evidence.
Buyers assume the seller’s premises is “safe” and delay arranging cargo cover until after pickup. If loss occurs during loading or in the first mile, the claim can become a mess, especially when responsibility for loading is unclear.
If the buyer controls the export process, the seller can lose visibility over the end destination and screening steps. That is a problem when controlled goods, dual-use items, or sanctions exposures are involved.
EXW can work when the transaction is domestic, the buyer has a local presence to handle pickup and compliance, and the seller wants a clean cutoff with minimal logistics involvement. It is also seen in small repeat deliveries where both sides have stable processes and the compliance burden is low.
If the buyer is not established in the seller’s country, if export licensing is complex, or if the seller needs clean evidence of export for tax or regulatory reasons, EXW is usually the wrong tool. It creates friction at the exact point where you need clarity: export filing, title, and the document trail.
| Incoterm | Why It Is Often Better Than EXW | Typical Use |
|---|---|---|
| FCA (Free Carrier) | Seller can handle export clearance and deliver to the carrier or terminal | Container shipments, air cargo, export deals where seller can export |
| FOB (Free On Board) | Seller loads on board vessel at named port (sea and inland waterway only) | Bulk or breakbulk shipments with port delivery logic |
| CPT / CIP | Seller arranges main carriage; CIP includes seller-procured insurance | Buyer wants landed logistics managed but keeps import responsibility |
Use a precise format: “EXW, [full pickup address], [city], [country], Incoterms 2020.”
Add operational clauses: pickup hours, loading responsibility, equipment required, safety rules, and who signs the pickup record.
Deal with export support: if the seller must assist with export documentation, say what they will provide and by when.
EXW disputes often come down to evidence. If you use EXW for a cross-border shipment, define which documents the buyer must share back to the seller and within what timeframe.
Not by default. Under EXW the seller makes the goods available. Loading is typically the buyer’s responsibility unless the contract adds seller loading obligations.
The buyer, unless the parties agree otherwise. This is one reason EXW often fails in international trade when the buyer cannot legally act as exporter in the seller’s country.
When the goods are placed at the buyer’s disposal at the named place. If the named place and loading responsibilities are not defined clearly, disputes are common.
It can be used, but FCA is often cleaner because it aligns better with export clearance and carrier handover mechanics.
Treating EXW as “seller does nothing” without addressing export filing, proof of export, and loading risk. Those gaps show up later as tax disputes, claims disputes, and delayed shipments.
Disclaimer: This guide is for general information only and does not constitute legal or tax advice. Incoterms allocate delivery obligations, costs, and risk between buyer and seller, but they do not replace a properly drafted sales contract. Obtain jurisdiction-specific advice for export, VAT, and customs compliance.
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