Incoterms Rules: EXW Ex-works

EXW - Ex-Works - Incoterms®

EXW - Ex Works - What is the meaning of 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.

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.

Graph showing Incoterms Ex-works

Using the Ex works terms 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 good, export procedures/export licenses and transportation costs as well as any associated goods in collecting the cargo, customs clearance and delivering the goods.

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 understanding the meaning of each incoterm, please reach out to the team!

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FREE DOWNLOAD: You can download our free Incoterms chart which gives simple explanations of all eleven incoterms here

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