Customs brokerage and international shipping terms guidance

Incoterms® 2020

EXW - Ex Works

Under EXW, the seller makes the goods available at its premises or another named place. The buyer bears nearly all costs and risks from that point forward.

Any mode · Named place (usually seller’s premises)

EXW at a glance

Under EXW, the seller makes the goods available at its premises or another named place. The buyer bears nearly all costs and risks from that point forward.

Any mode or multimodalInsurance required by the rule: No

Shipment

Named location
Named place (usually seller’s premises)
Delivery point
When goods are placed at the disposal of the buyer at the named place
Risk transfer
When goods are placed at the buyer’s disposal at the named place

Responsibilities

Main carriage
Buyer arranges and pays
Export clearance
Buyer
Import clearance
Buyer
Insurance
Neither party is required by EXW to contract for cargo insurance.

Contract

Common comparison
Compare with FCAFCA usually fits export shipments better when the seller should clear export formalities.

Illustrative notation: EXW Houston warehouse, Incoterms® 2020. Customize and copy below ->

Responsibility journey

Delivery point
When goods are placed at the disposal of the buyer at the named place
Risk transfer
When goods are placed at the buyer’s disposal at the named place
Seller sideBuyer sideDelivery + risk transfer
  1. Seller / exporter

    Cost
    Seller
    Handoff
    Delivery + risk transfer
  2. Origin pickup

    Cost
    Buyer
  3. Export clearance

    Cost
    Buyer
    Export
    Buyer
  4. Origin terminal

    Cost
    Buyer
  5. Carrier handoff

    Cost
    Buyer
  6. Main carriage

    Cost
    Buyer
  7. Destination terminal

    Cost
    Buyer
  8. Import clearance

    Cost
    Buyer
    Import
    Buyer
  9. Final delivery

    Cost
    Buyer
  10. Buyer / importer

    Cost
    Buyer
Text alternative for EXW: Seller-paid cost through Seller / exporter. Delivery occurs at Seller / exporter. Risk transfer at Seller / exporter. Insurance: Neither party is required by EXW to contract for cargo insurance. Export clearance: Buyer. Import clearance: Buyer. Main carriage: Buyer.

Who pays what under EXW?

EXW places minimum obligation on the seller. Once goods are made available, the buyer typically handles loading, export, main carriage, import, and delivery—unless the parties agree otherwise outside the rule.

Seller does

  • Provide conforming goods and commercial documents
  • Make goods available at the named place on the agreed date
  • Assist with information the buyer needs for export/import, at the buyer’s risk and cost

Buyer does

  • Take delivery when goods are made available
  • Arrange loading (unless otherwise agreed outside the rule)
  • Handle export and import clearance
  • Arrange and pay main carriage and on-carriage

Not determined by the EXW rule alone

  • Cargo insurance contract
  • Title/ownership transfer terms

When to use EXW

When EXW fits

  • Domestic handoffs or buyers with strong origin capability
  • Situations where the buyer controls the entire logistics chain from the seller’s door

When to use EXW with caution

  • Cross-border shipments where the buyer cannot practically handle export formalities
  • Cases where loading liability at the seller’s site is unclear

EXW shipment example

A machinery seller in Dallas makes a packed unit available at its warehouse. The buyer’s carrier collects the unit, completes U.S. export formalities, and moves the cargo to Europe. Risk transfers when the goods are placed at the buyer’s disposal at the warehouse—not when they arrive overseas.

Common mistakes

  • Assuming the seller must load the truck or arrange export clearance
  • Using EXW for international moves when FCA would better match operational reality

How do you write EXW in a contract?

Include the acronym, the exact named location, and the edition.

Contract notation builder

Build an illustrative line with the acronym, named place or port, and Incoterms® 2020. Parties must agree the exact location; this does not create a contract.

EXW Houston warehouse, Incoterms® 2020

Edition is fixed to Incoterms® 2020. Catalog example: EXW Houston warehouse, Incoterms® 2020

Does EXW include insurance?

Neither party is required by EXW to contract for cargo insurance.

EXW compared with related terms

Use these comparisons when the shipment mode, handoff point, or insurance need does not match EXW.

  • EXW vs. FCA

    FCA usually fits export shipments better when the seller should clear export formalities.

    FCA usually fits export shipments better when the seller should clear export formalities.

    Open FCA details ->
  • EXW vs. FOB

    FOB is sea/inland-waterway only and delivery occurs on board, not at the seller’s door.

    FOB is sea/inland-waterway only and delivery occurs on board, not at the seller’s door.

    Open FOB details ->

View all Incoterms(R) 2020 terms in the comparison matrix

Frequently asked questions

Who handles export clearance under EXW?

Under EXW Incoterms® 2020, export clearance is generally the buyer’s responsibility, which is why EXW is often impractical for many cross-border shipments.

Does EXW include loading?

EXW does not require the seller to load the collecting vehicle. If the seller loads, parties should document that arrangement separately.

When research turns into an operational shipment, connect the term to the teams that execute freight, clearance, insurance, and trade advice.

Unsure which shipping term fits your movement?

Talk with a Crane trade or customs specialist about transport mode, handoff points, documentation, and clearance responsibilities. This guidance is educational and is not legal advice; the parties remain responsible for selecting contractual terms.

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Last reviewed July 30, 2026. Edition reference: Incoterms® 2020 (not a new calendar-year edition).