Ex Works (EXW) is an Incoterm (International Commercial Term) that defines the seller’s minimum responsibility in international trade. Under EXW, the seller’s obligation is limited to making the goods available at their premises—factory, warehouse, or other agreed location—ready for collection by the buyer. The buyer assumes full responsibility for all subsequent costs, risks, and arrangements, including transport, export clearance, insurance, and delivery to the final destination. In logistics, EXW is widely used when the buyer wants full control over the transport process and is capable of handling customs, shipment, and risk management. For the seller, this term minimizes liability and operational involvement.
Key Characteristics:
- Seller delivers goods at their premises or agreed location
- Buyer assumes responsibility for transport, customs, and risks
- Cost and risk transfer occurs at the seller’s location
- Seller is not obligated to load goods onto the transport vehicle
- Reduces seller’s operational and logistical involvement
- Commonly used in international trade where buyers manage the supply chain
