Incoterm EXW explained

What is Incoterm EXW?
Incoterm EXW is suitable to be agreed upon if you as a buyer like to have all control over the transport process. This is because the buyer has almost all obligations with this Incoterm. EXW can be applied to any form of transport. If you as a seller like to have minimal obligations during the process, then EXW is a suitable Incoterm to agree upon.

Incoterm EXW meaning
Incoterm EXW means EX Works. This means that the seller puts his goods ready in a building (workspace/business premises) where the buyer picks up the goods. So the seller makes sure the goods are available to the buyer. The buyer comes to pick up the goods with their own chosen carrier on the agreed date.

EXW transport
Transport with Incoterm EXW can be done with any form of transport (by road, air or sea). The seller provides the proper packaging and labeling of the goods. The seller makes these goods available at the agreed premises. Here the buyer collects the goods with a carrier of his/her choice. The buyer is responsible for the transportation process and all the rules and costs involved. Any insurance must be taken out by the buyer if he wishes.

Incoterm EXW cost
All costs regarding transportation, loading and unloading are for the buyer. With EXW, the seller has very few obligations to meet and costs to pay. The buyer is responsible for the complete transportation process. From loading the goods to unloading the goods; as a buyer, you have to arrange and pay for all of this.

Seller obligations with EXW
Incoterm EXW entails minimal obligations for the seller. The seller is only responsible for preparing the goods. All goods must be properly packed and labeled. The goods must be picked up at the seller's premises such as a commercial building. As the seller, you do not have to arrange or pay for the transportation. You also do not have to load and unload the goods, nor do you have to complete customs formalities.

Buyer's obligations with EXW
As a buyer, however, you do have all the responsibilities. You have to arrange and pay for the transport of the goods yourself. This also includes loading and unloading. This ensures that the risk of damage to or loss of the goods always lies with the buyer with EXW. In addition, you as the buyer must also arrange all customs formalities. Note that the regulations for export deliveries outside the EU have changed as of 2021. Customs has determined that the exporter must always be based in the EU. This makes the company exporting outside the EU responsible for arranging the export declaration.

Incoterm EXW vs. FCA
Incoterms EXW and FCA are close to each other. In both, it is the seller's job to prepare the goods for transport. This transportation is arranged by the buyer. The main difference between EXW and FCA is that Incoterm EXW entails more responsibilities for the buyer. This is because the responsibility for exporting the goods also lies with the buyer. Also, what we often see in practice is that the seller loads his goods into the vehicle of the carrier chosen by the buyer. With EXW, this is the buyer's job.

Sea freight or air freight shipments with customs obligation?
Global shipments and shipments within Europe to/from non-EU countries are subject to customs obligations. What measures do you need to take and what documents are required? With the knowledge and experience of our specialists in the Rotra customs department, we are able to provide solutions for all your customs obligations that fit your logistics process while you focus on your own core business. For more info contact us directly.