Incoterms: EXW Ex-works

Incoterms® EXW - Ex-Works

Incoterms® EXW - Ex Works - What is the meaning of the Ex-works shipping trade term? Using the EXW Incoterms, the seller is responsible for having the goods packed and made available at the seller's premises.

Using the EXW shipping term, the seller that provides the goods to the buyer in a designated area, like a production site or warehouse. The buyer bears the full risk and costs from there to the destination - including the loading of the cargo and is responsible for all transportation. International trade can be complex as can shipping terms, ensure you use the correct trade term to minimize your risk.

Remember the seller is not obligated to provide any further requirements and is only responsible for making sure the goods are packed and available at their premises.

Graph showing Incoterms Ex-works

Using the Exworks incoterm for international shipping, the seller has minimal responsibility. The goods must be made available and packed suitably and be available at a specified location. The buyer, therefore, has the majority of the responsibility and is obligated to load the goods, export procedures/export licenses, and transportation costs as well as any associated goods in collecting the cargo, customs clearance, and delivering the goods. It is important to establish who carries the risk/liability for loss or damage during loading.

Did you know? The seller is not required to load the goods on the buyer's designated method of transport, but can do so if they choose. The seller's only requirement is to make the product available at a selected location, it is the buyer's responsibility to pay for the transport.

With all incoterms, it is important to understand the obligations of both the buyer and seller. There are eleven incoterms covering international shipments, are you aware of all the different options? Free on board and free carrier may be of interest for your shipping process, if you need shipment support and want to further understand the meaning of each incoterm, please reach out to our supply chain team!