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Term

EXW (Ex Works)

EXW, or Ex Works, is the Incoterms rule that puts the least on the seller: it makes the goods available at its own premises, not loaded, and the buyer handles everything from there — loading, export clearance, transport and import. Risk passes when the goods are made available. ICC recommends FCA instead whenever the goods cross a border.

Also called Ex Works, EXW Incoterm, ex factoryUpdated 12 October 2026

What EXW means

  • The seller makes the goods available at its premises or another named place, ready for loading onto the vehicle the buyer arranges.
  • The buyer loads, clears the goods for export, and pays all transport and import costs.
  • Risk passes to the buyer when the goods are placed at its disposal.

Why ICC steers exporters away from it

Because the buyer is responsible for export formalities, which ICC says can lead to complications for both parties: in many countries a foreign buyer cannot file the export declaration, and the seller still needs proof the goods left. ICC's checklist calls EXW suitable primarily for domestic trade, notes that many small or new exporters like to quote it, and strongly encourages FCA where goods cross a border. Its 2025 review describes EXW as extremely difficult for US export customers.

Worked example: EXW or FCA

Suppose a seller quotes USD 10,000 EXW, or USD 10,180 FCA its own dock — adding USD 100 to load the truck and USD 80 to file the export declaration it is best placed to file.

FCA premium = 10,180 − 10,000 = USD 180 · Buyer's alternative under EXW: a forklift and an export agent at the seller's site

For a foreign buyer, USD 180 usually buys a cleaner export: the party that knows the goods files the declaration and loads them.

The mistake people make

Quoting EXW to look simple. The seller still ends up loading the truck and helping with export paperwork — now without the contract saying so, or what happens if something goes wrong while it does.

FAQ

EXW (Ex Works): common questions

Who loads the goods under EXW?
The buyer. The seller makes the goods available at its premises ready for loading onto the buyer's vehicle; loading is not the seller's job under EXW.
Who handles export clearance under EXW?
The buyer — which is why ICC recommends FCA for goods crossing a border, since a foreign buyer often cannot file the export declaration itself.
When should I use EXW?
Mainly for domestic sales, where there is no export clearance. ICC's checklist calls it suitable primarily for domestic trade.