Shipping Terms Glossary

Ex Works (EXW)

EXW works best for local or within borders transportation of goods, or for buyers who want complete control over their goods and transportation.

What is Ex Works (EXW)?

EXW is one of the 11 International Commercial Terms (Incoterms) used in trade, where the seller is responsible for making the goods ready for pick up from their premises.


🚨 Point of Risk Transfer :

When the buyer comes to load the goods at the seller’s premises. The seller is not responsible for any damage or loss that may happen during or after loading.


EXW places minimal responsibility on the seller compared to the other 11 Incoterms.

What is Ex Works (EXW)?

When should you choose EXW?

EXW works best for local or within borders transportation of goods, or for buyers who want complete control over their goods and transportation.


EXW is also commonly used when the seller is not willing to be responsible for transporting the goods to other warehouses or ports.


🚨 Make sure that your factory can provide you with an export license , or you may face a huge fee when trying to get export clearance!

Simple Scenario Time:

E-Commerce Owner (Buyer): Alex runs an e-commerce store that sells clothing. His warehouse is in Michigan, US.

Supplier (Seller): A manufacturer located in Shenzhen, China.

Agreed Term: Manufacturer ABC Warehouse, Shenzhen, China

Seller’s duties: Responsible for manufacturing the clothes and making sure the goods are ready for pick up when the buyer comes.

Buyer’s duties: Has to arrange and pay for pick up at the Shenzhen Factory, export clearance, main carriage, import clearance and delivery to his warehouse in Michigan.

Point of Risk Transfer: When the seller makes the goods readily available for Alex.

Cost allocation. Who pays for what under EXW:

Cost allocation  - who should pay what under EXW:

Cristian Ungureanu

Logistics nerd and resident marketing guy of Bookairfreight. I love writing content that simplifies old-fashioned industry processes and provides solid, accurate information you can base your decisions on. Outside of logistics, I enjoy nature, hanging out with friends, electronic music and spirituality.

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