Incoterms & Delivery Terms
EXW
Also known as: Ex Works
Ex Works represents the minimum obligation for a seller: the goods are simply made available for collection at the seller's own premises — a factory, warehouse, or plant — and from that moment nearly every cost and risk shifts to the buyer. The buyer must arrange loading (in practice sellers often assist), inland haulage, export clearance, main carriage, insurance, and import clearance. EXW is convenient for sellers who want to quote a bare factory-gate price, but it can be awkward for buyers who lack the standing to complete export formalities in the seller's country, which is why many exporters use FCA instead.
EXW looks cheap and usually is not. The buyer takes on export clearance in a country where they have no standing to file, which in practice means the seller does it anyway as an unofficial favor — and when it goes wrong there is no contract governing it. If you are buying from a first-time exporter, FCA gives you the same commercial deal with the paperwork attached to someone who can actually do it.
Where it matters for compliance
- Export clearance in the origin country is the buyer's obligation, and many jurisdictions will not accept a filing from a non-resident.
- Costs incurred before the goods leave the seller's premises are still part of the price paid or payable for U.S. valuation purposes.
Related terms
Reviewed by a licensed customs broker. Definitions are general information, not legal or customs advice for a particular shipment. Duty rates, tariff programs and agency requirements change frequently.