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EXW (Ex Works)

EXW definition in shipping

EXW, or Ex Works, is one of the Incoterms (International Commercial Terms) published by the International Chamber of Commerce (ICC). It defines the responsibilities of buyers and sellers in international transactions. Under EXW terms, the seller fulfills their obligation by making the goods available for pickup at their premises (factory, warehouse, etc.). The buyer assumes all risks and costs associated with transporting the goods from the seller’s location to the final destination.

Does EXW include shipping?

No, EXW does not include shipping. The buyer is responsible for all transportation costs, export duties, and risks from the point of collection onward. The seller's responsibility ends once the goods are made available at their premises.

EXW vs. FOB

FOB (Free On Board) is another Incoterm where the seller's responsibility extends until the goods are loaded onto the vessel for shipment. In contrast, under EXW, the seller's responsibility ends when the goods are made available at their premises. FOB includes more seller responsibilities than EXW, such as loading the goods onto the shipping vessel and clearing them for export.

EXW vs. FCA

FCA (Free Carrier) is similar to EXW but with a crucial difference. Under FCA, the seller is responsible for delivering the goods to a specified location, typically a transport terminal or the buyer’s carrier. The seller also handles export customs clearance. EXW places the least responsibility on the seller, while FCA requires the seller to handle more logistics up to the handover point.

EXW vs. DDP

DDP (Delivered Duty Paid) represents the opposite end of the spectrum from EXW. Under DDP, the seller bears all risks and costs associated with delivering the goods to the buyer’s location, including shipping, insurance, and import duties. EXW requires the buyer to handle all these responsibilities, while DDP places them entirely on the seller.