EXW (Ex Works) is an Incoterm in which the seller's only obligation is to make goods available at their own premises. From that point, the buyer takes on all responsibility - loading, origin-side transport, export clearance, international freight, import clearance and final delivery - the maximum buyer responsibility among common Incoterms.
- The buyer takes on the most responsibility and risk of the common Incoterms.
- Often the lowest quoted price, since it excludes all logistics.
- Requires the buyer (or their agent) to handle origin-side logistics and export clearance.
- Compare directly with FOB and CIF, which shift more responsibility to the seller.
What EXW Means
EXW (Ex Works) is an Incoterm in which the seller's only obligation is to make the goods available at their own premises. From that point on, the buyer is responsible for loading, origin-side transport, export clearance, international freight, import clearance and final delivery - the maximum buyer responsibility among common Incoterms.
Why EXW Matters
EXW often looks like the cheapest option on a quote, but it shifts real logistics responsibility and risk onto the buyer - understanding this prevents a costly surprise.
When EXW Applies
EXW can suit buyers who already have reliable origin-side logistics (their own freight forwarder or agent) and want maximum control over shipping.
What Trips Up First-Time Buyers
Choosing EXW based on price alone
The lower headline price doesn't include origin logistics, export clearance or freight - the true landed cost includes all of that.
Not having origin-side logistics arranged
Buyers without a freight forwarder or agent at origin can face real delays under EXW terms.
EXW Compared
| Term | Seller responsibility ends at | Buyer takes over |
|---|---|---|
| EXW | Factory door | Everything from origin logistics onward |
| FOB | Loaded onto vessel at origin port | International freight, insurance, import, delivery |
| CIF | Destination port (freight + insurance included) | Import clearance, duty, final delivery |
| DDP (where available) | Buyer's door, duties paid | Minimal - receiving the goods |
EXW Checklist
- Confirm you have a reliable freight forwarder or agent at origin
- Budget for origin-side logistics and export clearance separately
- Compare total landed cost, not just the quoted unit price
- Confirm exactly which point marks the handover of responsibility
Common Questions
Is EXW cheaper than FOB or CIF?
The quoted product price is often lower under EXW since it excludes logistics, but total landed cost depends on what you add on top - see the Landed Cost Breakdown guide.
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