This setup can be beneficial for experienced buyers who have the necessary infrastructure and expertise to handle international shipments but may pose challenges for newcomers to global trade.
Ex Works (EXW) is a commonly used Incoterm® (International Commercial Term) that defines the responsibilities of sellers and buyers in international trade. Under an EXW agreement, the seller makes the goods available at a designated location—typically their warehouse, factory, or another agreed-upon place—while the buyer assumes full responsibility for transportation, export clearance, customs duties, and final delivery.
EX Works provides minimal obligations for the seller and places the majority of shipping costs, logistics, and risks on the buyer. This setup can be beneficial for experienced buyers who have the necessary infrastructure and expertise to handle international shipments but may pose challenges for newcomers to global trade.
✅ EX Works (EXW) is an international trade term where the seller is only responsible for making goods available at a designated location, while the buyer manages transportation, customs, and delivery.
✅ It is one of 11 Incoterms® published by the International Chamber of Commerce (ICC) to standardize global trade transactions.
✅ The buyer assumes all risks once the seller provides access to the goods, including loading, shipping, and import/export processes.
✅ EX Works is best suited for experienced buyers with established logistics partners like Daguer Logistics to ensure smooth international trade and fulfillment.
When a trade agreement follows EX Works (EXW) terms, the seller's only responsibility is to package, label, and make the goods available at a specified location (e.g., warehouse, manufacturing facility). The buyer is responsible for the entire shipping process, including export/import duties, transportation, and delivery to the final destination.
Under EX Works terms, the seller has minimal obligations:
· Packing & Labeling – Ensuring products are properly packaged and labeled.
· Providing a Pickup Location – Making the goods available for collection at a designated site.
· Assisting with Documentation – Helping the buyer obtain necessary export paperwork but not paying for it.
The buyer assumes most of the costs and risks, including:
· Loading charges – Paying for labor or equipment to load goods onto transport.
· Export customs clearance – Handling any necessary permits, documentation, or duties.
· Freight & shipping costs – Covering transport from the seller’s premises to the buyer’s country.
· Insurance – Arranging coverage for potential damage or loss in transit.
· Import duties & tariffs – Managing import-related fees, customs clearance, and final delivery.
A U.S.-based company purchases 100,000 units of electronic components from a manufacturer in China under EXW terms. The Chinese seller prepares the order and notifies the buyer that the goods are ready for pickup at their warehouse.
· The buyer must arrange for pickup, pay for transport, manage customs, and handle last-mile delivery.
· The seller has no responsibility beyond making the goods available.
1. Lower Product Costs – Sellers pass on minimal expenses, making EXW cheaper than FOB or CIF.
2. More Control Over Logistics – Buyers can select cost-effective carriers, consolidate shipments, and optimize routing.
3. Freedom to Use Preferred Freight Forwarders – Businesses can partner with expert 3PLs like Daguer Logistics to streamline fulfillment.
1. High Responsibility & Risk – Buyers must handle export/import procedures, customs clearance, and freight costs.
2. Potential Hidden Costs – Additional costs for loading, storage, or customs duties may arise if logistics planning isn’t efficient.
3. Complex for New Buyers – Businesses unfamiliar with global trade may struggle with compliance, customs, and carrier coordination.
EXW is part of the 11 Incoterms® rules defined by the International Chamber of Commerce (ICC). Other Incoterms include:
Incoterms Used for Any Mode of Transport:
1. EXW (Ex Works) – Buyer takes full responsibility.
2. FCA (Free Carrier) – Seller delivers goods to a transport carrier.
3. CPT (Carriage Paid To) – Seller pays for transportation to an agreed destination.
4. CIP (Carriage and Insurance Paid To) – Same as CPT, but seller also provides insurance.
5. DAP (Delivered at Place) – Seller delivers goods but does not unload them.
6. DPU (Delivered at Place Unloaded) – Seller delivers and unloads goods at the destination.
7. DDP (Delivered Duty Paid) – Seller covers all costs, including import duties.
1. FAS (Free Alongside Ship) – Seller delivers goods next to a vessel.
2. FOB (Free on Board) – Seller loads goods onto a vessel.
3. CFR (Cost and Freight) – Seller pays for transport but not insurance.
4. CIF (Cost, Insurance, and Freight) – Seller covers transport and insurance.
EX Works is often preferred for bulk shipments, high-value goods, and buyers with advanced logistics capabilities.
EX Works (EXW) is a cost-effective Incoterm for businesses that want full control over shipping and logistics. However, it requires expertise in freight, customs, and global trade compliance.
For hassle-free EXW shipping and fulfillment, partner with Daguer Logistics. Our expert team ensures smooth transportation, customs clearance, and last-mile delivery. Contact Daguer Logistics today for reliable, cost-effective global fulfillment solutions!
1. What does EX Works mean in shipping?
EX Works (EXW) means the seller makes goods available at a designated location, and the buyer is responsible for all shipping, customs, and logistics costs.
2. Who is responsible for customs clearance in EX Works?
The buyer is responsible for export and import customs documentation, duties, and clearance procedures.
3. Is EX Works cheaper than FOB?
Yes, EXW is usually cheaper upfront, as the seller has fewer responsibilities. However, the buyer must handle all logistics, which may increase overall costs.
4. How does EX Works compare to DDP?
EX Works: Buyer takes full responsibility from the seller’s location.
DDP (Delivered Duty Paid): Seller manages everything, including import duties.
5. When should a business use EX Works?
· When the buyer has trusted logistics providers like Daguer Logistics.
· When the buyer wants full control over freight, insurance, and customs procedures.
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