---
title: "What Is EXW (Ex Works)?"
url: https://www.uncap.com/glossary/exw
author: "Denis Dyli"
published: 2026-10-28
updated: 2026-10-28
summary: "EXW (Ex Works) is the Incoterms rule under which the seller delivers by placing the goods at the buyer's disposal at an agreed place, typically its own premises, not loaded. From that point the buyer bears the risk and takes on loading, transport, export and import clearance and any tariffs. It places the minimum obligation on the seller."
---

# What Is EXW (Ex Works)?

> EXW (Ex Works) is the Incoterms rule under which the seller delivers by placing the goods at the buyer's disposal at an agreed place, typically its own premises, not loaded. From that point the buyer bears the risk and takes on loading, transport, export and import clearance and any tariffs. It places the minimum obligation on the seller.

**EXW (Ex Works)**: EXW (Ex Works) is the Incoterms rule under which the seller delivers by placing the goods at the buyer's disposal at an agreed place, typically its own premises, not loaded. From that point the buyer bears the risk and takes on loading, transport, export and import clearance and any tariffs. It places the minimum obligation on the seller.

## How it works

EXW, short for Ex Works, is one of the 11 Incoterms 2020 rules issued by the International Chamber of Commerce (ICC). It is one of the seven rules for any mode of transport, written as EXW followed by the named place of delivery.

Who does what under EXW:

- Seller: has the goods ready for the buyer at the agreed place, often its business premises, workshop or storage space.
- Loading: done at the buyer's expense and risk.
- Transport: the buyer arranges the entire transport and bears its costs.
- Customs and tariffs: ICC's guidance on tariffs lists export clearance, import clearance and tariffs as the buyer's under EXW.
- Insurance: ICC Academy lists it as optional, at the buyer's risk and cost.
- Risk: passes to the buyer when the goods are placed at its disposal at the agreed place.

ICC Academy says the commercial invoice under EXW only includes the value of the goods and their packaging, and that the buyer covers loading and unloading, transportation and any export, import and transit customs.

## EXW vs FCA

ICC Academy describes EXW as most suitable for domestic trade. Because export responsibilities fall on the buyer, it encourages traders to consider FCA instead when the goods cross a border. Under FCA, the seller carries out export clearance and, when delivery is at its premises, loads the goods onto the buyer's vehicle.

Dutch government guidance from the Netherlands Chamber of Commerce (KVK) adds a practical point: under EXW it often happens that the seller or its staff, not the driver, loads the goods, and in that case FCA is practically already taking place.

For US exports, the International Trade Administration (ITA) notes that terms of sale, Incoterms included, do not determine the type of export transaction under the Census Bureau's Foreign Trade Regulations. A routed export transaction is one where the foreign principal party in interest selects a US forwarding or other agent, regardless of the terms of sale. This is general information, not legal or customs advice.

## Example

A manufacturer sells a distributor 200 cartons at $40 each, EXW its plant: 200 x $40 = $8,000 on the invoice, covering the goods and their packaging.

- The cartons are ready at the plant on the agreed date. Risk passes to the distributor at that point.
- The distributor's truck collects them, and the distributor pays for loading and the $1,200 freight run.
- The distributor's cost before any duties is $8,000 + $1,200 = $9,200, or $9,200 / 200 = $46 a carton.

## On Shopify

If you want a customer to pick up an order from one of your locations, Shopify says you must select an in-store pickup location when creating the B2B draft order. If a shipping method isn't preselected when the draft order is created, Shopify says the customer can select from the available shipping rates at checkout but can't select local delivery or pickup in store. The [FOB (free on board)](/glossary/fob) page covers where Shopify lets you keep an agreed delivery term with a B2B company account.

## How Uncap helps

Under EXW the buyer collects the goods at the agreed place. On Uncap's [electrical and electronics page](/industry/electrical-electronics), will call is its own fulfillment path, so the branch gets a pick instruction before the contractor arrives.

## Related terms

- Incoterms
- FCA (Free Carrier)
- Commercial invoice
- Freight forwarder

## Sources

- International Trade Administration: Know Your Incoterms
- ICC Academy: FCA and EXW Incoterms 2020 explained
- ICC: Using the Incoterms 2020 Rules to Manage Tariff Risk (PDF)

## Frequently asked questions

### What does EXW mean in shipping?

EXW, or Ex Works, is the Incoterms rule under which the seller makes the goods available at an agreed place, typically its own premises, not loaded. The buyer then handles loading, transport, export and import clearance and any tariffs, and carries the risk from that point.

### Who pays for shipping on EXW?

The buyer. Under EXW the buyer contracts the carriage, pays for loading at the seller's premises and, per ICC guidance, handles export clearance, import clearance and tariffs.

### What is better, FCA or EXW?

It depends on the trade. ICC Academy describes EXW as most suitable for domestic trade and encourages traders to consider FCA when goods cross a border, because under FCA the seller carries out export clearance and loads the goods when delivery is at its premises.

### What is the difference between EXW and FOB?

EXW can be used for any mode of transport, and the seller delivers at the named place, typically its premises, with export clearance left to the buyer. FOB is a sea and inland waterway rule: the seller delivers the goods on board the vessel at the named port of loading and carries out export clearance.