Incoterms® 2020Modes: Any
EXW - Ex Works
EXW (Ex Works) is one of the 11 rules published by the ICC in Incoterms® 2020. Risk passes seller's premises - when goods placed at buyer's disposal. Insurance is not an obligation under EXW - the buyer decides.
Avoid for LC
Risk transfer point
Seller's premises - when goods placed at buyer's disposal
Who does what under EXW
| Obligation | Party |
|---|---|
| Export Packaging | Seller |
| Inland Transport (Origin) | Buyer |
| Export Clearance | Buyer |
| Loading on Vessel | Buyer |
| Main Carriage (Freight) | Buyer |
| Insurance | Buyer |
| Destination Charges | Buyer |
| Import Clearance | Buyer |
| Import Duty | Buyer |
Watch outs
- Buyer cannot obtain export clearance in most countries. Avoid for international trade.
- Risk transfers before export clearance - seller retains goods risk if buyer fails to export.
Under a letter of credit
Seller cannot obtain B/L or transport documents. Incompatible with documentary LC.