Definition
The seller only makes the goods available at their premises; the buyer bears almost all cost and risk.
Under EXW the seller’s obligation is minimal — they pack the goods and place them at the buyer’s disposal at their factory or warehouse. From that point the buyer arranges and pays for loading, export clearance, carriage, insurance, and import.
EXW gives the buyer maximum control but maximum exposure, and is awkward in practice because the buyer is rarely able to handle export formalities in the seller’s country. FCA is usually the cleaner alternative.
Related terms
FCA (Free Carrier)
The seller delivers, cleared for export, to a carrier nominated by the buyer at a named place.
FOB (Free On Board)
The seller delivers, cleared for export, once the goods are on board the vessel at the named port.
Incoterms
ICC-published trade terms (EXW, FOB, CIF, DDP…) that define who pays and bears risk at each step.
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