Incoterms EXW

Ex Works (named place of delivery)

Incoterms EXW

EXW is the Incoterm that represents the minimum obligations, costs and risks for the seller as he delivers the goods at his own premises (factory or warehouse) in his country. Not even the seller is responsible for loading the goods onto the first carrier (usually truck) that sends the buyer to pick them up. It is the only Incoterm in which the seller does not clear the goods for export, when such clearance is applicable.

On the contrary, with EXW, the seller offers the lowest service of all Incoterms and represents a loss of competitiveness in comparison with other companies that assume part of international logistics.

This term is suitable for exporting firms with little international experience and who make groupage operations (boxes, pallets) in which the buyer sends a truck to collect the goods at the seller's premises. When sending full containers, it is better to use FCA as usually the seller makes the loading of the container on the truck sent by the buyer to the seller's premises.

It is not advisable to use EXW regularly because when the seller delivers the goods in its own country, normally it is preferable to use FCA.

Practical Guide to Incoterms 2010 Incoterms