EXW, or Ex Works, is an Incoterms 2020 rule under which the seller delivers by placing goods at the buyer's disposal at a named place, such as a factory or warehouse. The seller does not have to load the collecting vehicle or clear the goods for export, so the buyer carries most transport obligations and risk from that point.
The contract should state the named place and, where possible, the precise collection point. A broad reference to a large factory, warehouse complex or industrial park can leave the parties arguing about where delivery occurred and which handling cost belongs to whom.
What EXW assigns to each party
| Issue | EXW position | Record to keep |
|---|---|---|
| Delivery | The seller places the identified goods at the buyer's disposal at the agreed point. | Named place, collection point, date and evidence that the goods were ready. |
| Loading | The seller is not required to load the buyer's collecting vehicle unless the contract adds that obligation. | Written loading arrangement and any handling charge. |
| Export clearance | The buyer is responsible where export clearance applies. | Exporter-of-record plan, declarations and supporting documents. |
| Risk | Risk passes when delivery occurs at the agreed point, before onward transport. | Time-stamped collection or availability evidence. |
EXW compared with FCA and DDP
EXW gives the seller the smallest delivery obligation among the Incoterms 2020 rules. Under Incoterms, DDP sits at the other end of the allocation: the seller carries the goods to the named destination and handles import clearance and applicable duties. FCA can be more practical for exports because the seller clears the goods for export and, when delivery is at the seller's premises, loads the collecting vehicle.
EXW can look inexpensive on a supplier quote while shifting pickup, loading, export and freight costs to the buyer. Include those amounts when comparing landed cost, not after the purchase order is approved.
When EXW can cause problems
A foreign buyer may be unable to complete export formalities in the seller's country or obtain the evidence needed for tax and customs records. Loading can create another gap when the buyer's carrier cannot safely operate at the seller's premises. The parties should resolve both questions before using EXW.
The International Chamber of Commerce states that the seller does not need to load the collecting vehicle or clear the goods for export under EXW. Its updated Incoterms checklist also notes that EXW is primarily suitable for domestic trade. Review the official ICC EXW guidance and the signed sale contract for the transaction.
How EXW affects the payment record
EXW allocates delivery tasks, costs and risk. It does not determine the payment due date, transfer of title or when a bank payment settles. The invoice, purchase order and payment instruction should carry the same supplier, currency, commercial reference and named-place wording so finance can reconcile the payment to the agreed shipment.
Where Quotable Payments may fit
For an eligible cross-border supplier payment, Quotable Payments can show the applicable currency pair, quoted rate, fees and estimated Recipient amount before submission. The business still needs a separate landed-cost record for freight, customs and other EXW obligations.
