EXW (Ex Works)
An Incoterm where the seller makes goods available at its own premises and the buyer handles loading, export, freight and import.
TL;DR: EXW means the seller only makes the goods ready for pickup at its factory or warehouse. The buyer takes on almost all cost and risk from that moment, including loading and export clearance.
Under Incoterms 2020, EXW places the least responsibility on the seller. Risk passes to the buyer when the goods are placed at the buyer’s disposal at the named place, not loaded onto any vehicle. The seller has no duty to load the truck or to clear the goods for export. The buyer arranges pickup, export customs, main freight, insurance, import clearance and duties.
EXW can look like the cheapest quote, but it can be hard to use when buying from China. Export clearance normally has to be filed by a Chinese entity with export rights, and a foreign buyer usually cannot do this alone. In practice, the buyer’s freight forwarder often works with the factory to handle it, and the costs end up on the buyer’s side.
Loading is another weak point. Mosaic tile sheets on wooden crates or pallets are heavy and fragile. If the factory helps load your truck under EXW, damage during loading is still technically your risk. Agree in writing who loads and how.
Many buyers who want control of freight choose FCA instead, because the seller then handles export clearance. Compare with FCA and FOB.