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Incoterms: Ex Works (EXW)

An in-depth guide on the incoterm; Ex Works...

What is Ex Works? (EXW)

Ex Works is one of the 11 official incoterms. In this ruling, minimal responsibility is placed on the seller. The seller's role is simply to make the goods available for transport (packaged and located at specified place).

 

What Transport Mode Can Ex Works Be Used With? 

Ex Works can be used for any transport mode, or where there is more than one singular mode of transport. 

 

How Does EXW, Work? 

Ex Works places maximum responsibility on the buyer. The buyer will need to account for costs associated with the loading of the goods onto a pickup vehicle, obtaining any export licence or permits, any insurance premiums, transferring the cargo overseas via air, sea, road or rail, unloading the goods at the destination and handling all customs procedures at origin and destination. If any storage charges, customs examination fees, customs duties or any other charges fall due, this will be the responsibility of the buyer.

 

Ex Works (EXW) Overview

  • Ex Works is particularly good for the seller and not so for the buyer, this is because EXW places the utmost responsibility on the buyer. 
  • EXW is a shipping arrangement in which a seller makes a product available at a specific location, but the buyer has to pay the transport costs.
  • In a similar fashion to one of the other incoterms, Free Carrier (FCA), the seller’s responsibilities terminate when the goods have been collected from their premises by the buyer’s carrier.
  • There is a subtle difference between Ex Works and Free Carrier. With FCA, where the named place is the seller's premises, the seller is responsible for loading the goods - this is not the case with EXW. 
  • Although the seller is not obliged to load the goods, if the seller does so, this is at the buyer’s risk!

 

 

If you have any further queries in respect of Ex Works or any other incoterm, feel free to contact a member of our team on 0113 250 1155 or email us at: sales@tudorfreight.com

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