SSLT Global
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. Neither party must arrange insurance for the other under EXW.

ICC has started work on Incoterms 2030; Incoterms 2020 remains current.

EXW defines where the seller delivers and how seller and buyer divide transport responsibilities, costs and transit risk. Use it with a precise named place or port and the words Incoterms 2020. The rule does not replace the sale contract, determine ownership or establish payment terms.

Avoid for LC

Risk transfer point

Seller's premises - when goods placed at buyer's disposal

Who does what under EXW

ObligationParty
Export PackagingSeller
Inland Transport (Origin)Buyer
Export ClearanceBuyer
Loading on VesselBuyer
Main Carriage (Freight)Buyer
InsuranceBuyer
Destination ChargesBuyer
Import ClearanceBuyer
Import DutyBuyer

A1 to A10 / B1 to B10 obligations

Practical summary, not a reproduction of the ICC rule text. A identifies seller obligations; B identifies buyer obligations. Read the full rule for exceptions, assistance duties and notice consequences.

ArticleSeller (A)Buyer (B)
A1/B1 General obligationsSupply conforming goods and commercial invoice.Pay the price agreed in the sale contract.
A2/B2 Delivery / taking deliverySeller's premises - when goods placed at buyer's disposalTake delivery when the seller delivers under A2.
A3/B3 Transfer of risksBear loss or damage until delivery under A2, subject to the rule's exceptions.Bear loss or damage after delivery; failure to give required notices can shift risk earlier.
A4/B4 CarriageNo obligation to contract main carriage; provide required assistance.Arrange main carriage from the delivery point.
A5/B5 InsuranceNo obligation to insure for the buyer; provide required assistance.No obligation to insure for the seller; supply requested information where required.
A6/B6 Delivery / transport documentNo obligation to provide a transport document.Accept compliant delivery evidence; assist where the rule requires.
A7/B7 Export / import clearanceAssist the buyer on request at buyer's risk and cost.Handle export, transit and import formalities.
A8/B8 Checking / packaging / markingPay checking costs necessary for delivery; suitably package and mark goods unless normally transported unpackaged.No corresponding packaging obligation to the seller.
A9/B9 Allocation of costsPay allocated costs through delivery and any carriage/insurance expressly required by the rule.Pay allocated costs after delivery, subject to costs expressly allocated to the seller.
A10/B10 NoticesGive notices needed for the buyer to take delivery.Give timely notices where entitled to determine shipment time, destination or delivery point.

Documents to arrange

  • Commercial invoice and contract-compliant evidence that the goods conform.
  • Buyer-arranged collection receipt and transport document; agree seller assistance separately.
  • Export/import declarations, origin evidence and permits where legally required, supplied by the responsible party or with the assistance required by the rule.

A packing list or origin certificate may be required by the contract, bank or customs authority; not every such document is automatically required by every Incoterms rule.

Letter of credit suitability

An LC is possible, but collection at the seller's premises gives the seller limited control of transport documents. Align required documents with what the seller can actually obtain.

Incoterms do not govern bank acceptance. A credit subject to UCP 600 has its own documentary requirements; the issuing bank and beneficiary should align these with the sale contract.

Illustrative numeric example: EXW

Assume the agreed EXW contract price is USD 10,000 and a separate buyer-side service costs USD 200, outside the seller's obligations. The buyer's budget is USD 10,200 before any other buyer-allocated costs. These assumed figures illustrate budgeting, not market freight or tax rates. Paying that service does not change the delivery point: risk transfers seller's premises - when goods placed at buyer's disposal.

Frequently asked questions

Where does risk transfer under EXW?

Seller's premises - when goods placed at buyer's disposal. Name the precise delivery place or port in the contract; payment of freight does not by itself determine risk transfer.

Who pays main carriage under EXW?

Buyer arranges and pays the main carriage. Identify any terminal or unloading charges included in the carriage contract to avoid paying twice.

Is insurance compulsory under EXW?

Neither party is required by this rule to arrange cargo insurance for the other. The party bearing transit risk should consider suitable cover.

Who handles import clearance under EXW?

Buyer handles import clearance and buyer pays import duties. Local law still determines who may act as importer.

Does EXW determine payment or ownership?

No. Incoterms allocate delivery obligations, costs and risk, not title to the goods, payment timing or bank examination standards. Agree those separately in the sale contract and any letter of credit.

Primary reference: ICC Incoterms 2020. Consult the official rule text for contractual use.

Other Incoterms® 2020 rules

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