"Ex Works" (EXW) is an Incoterm that places the minimum obligation on the seller, who only needs to make the goods available at their premises or another named location (e.g., factory, warehouse). This term is used across various modes of transport and is favored for its simplicity in seller responsibilities.

EXW Definition and Scope

Under EXW, the seller makes the goods available at their location, where the buyer then takes over all the responsibilities of transportation and exportation. It is suitable for domestic purchases and international trade, though its simplicity in terms of seller responsibility often shifts more logistics and costs onto the buyer.

Seller’s Obligations

  • Ensure goods are ready and available for pickup at the agreed time and place.
  • Provide the buyer with any necessary information or documents to facilitate the export of goods.

Buyer’s Obligations

  • Arrange and pay for all transportation from the seller's premises, including loading.
  • Handle all export procedures, customs clearances, and associated costs.
  • Assume all risks and costs from when goods are available at the agreed location.

Risk and Cost Transfer Points

Risk transfers to the buyer when the goods are available at the specified location, not when loaded onto the carrier’s vehicle. The buyer bears all costs and risks in transporting the goods from the seller's premises to their final destination.

Benefits and Considerations

  • Benefits: Offers simplicity for the seller and can reduce their costs and liability significantly.
  • Considerations: This puts a substantial logistical burden on the buyer, particularly in international transactions where the buyer must understand and manage export procedures.

Common Scenarios

  • Often used when buyers have a presence in the seller's country and can handle local logistics efficiently.
  • Suitable for transactions where buyers prefer to control the shipping arrangements directly or when purchasing from sellers unfamiliar with export processes.