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Glossary · Trade terms
What is EXW (Ex Works)?
An Incoterms rule where the seller only makes the goods available at its own premises and the buyer handles everything else, including export clearance.
Ex Works is the Incoterms 2020 rule that puts the least obligation on the seller. The factory makes the goods available at its premises or another named place, not loaded on any vehicle and not cleared for export. From that point the buyer bears all costs and risks: loading, export customs in China, freight, insurance, import customs and delivery.
For a US business, EXW looks cheap on paper but is hard to run from abroad. Export clearance in China is normally handled by a registered exporter or customs agent there, so a buyer on EXW terms still needs someone on the ground to load the truck, book the container and file the export declaration. Add those costs back before deciding an EXW quote is the lowest.
If a factory quotes EXW, ask for an FOB price as well, which moves loading and export clearance back to the seller. The ICC's own guidance points buyers who cannot handle export formalities toward FCA instead of EXW.
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