EXW (Ex Works)
Incoterms 2020 rule placing maximum responsibility on the buyer: the seller makes goods available at their premises; the buyer handles all costs and risks from that point.
In detail
Under EXW, the seller's only obligation is to make the goods available at their named premises (factory, warehouse). The buyer must: organize inland transport from the seller's location to the port, handle export customs clearance in the country of origin, arrange ocean freight and insurance, and manage import customs in the destination country. EXW in China trade presents a practical problem: export customs clearance in China must be conducted by a Chinese legal entity. If you are a foreign buyer, you cannot directly file Chinese export customs documents. This means an EXW purchase requires you to either have a local Chinese logistics agent or, in practice, the seller still handles Chinese export — making the arrangement functionally similar to FOB but with less clarity about responsibilities and costs. Recommendation: for China imports, FOB is almost always preferable to EXW — it clearly assigns the export customs responsibility to the Chinese seller while giving the buyer freight control from the port.
Examples
- →EXW factory Shenzhen: buyer needs to hire a local agent in Shenzhen to export the goods, adding complexity and cost
Related terms
FOB (Free on Board)
Incoterms 2020 rule: seller is responsible until goods are loaded on board the vessel at the named port; all risk and cost pass to the buyer from that moment.
DAP (Delivered at Place)
Incoterms 2020 rule: seller delivers to a named destination in the buyer's country; import customs clearance and duties remain the buyer's responsibility.
Freight Forwarder
A company that arranges international cargo transportation on behalf of shippers — booking carriers, managing documentation, and coordinating the logistics chain.