What Is EXW?
Ex Works, commonly abbreviated as EXW, is one of the incoterms used in international trade. This term places the maximum obligation on the buyer and minimum obligations on the seller. Under Ex Works incoterms, the seller is only required to make the goods available at their premises or at another named place. The buyer bears all the costs and risks involved in taking the goods from the seller’s premises to the desired destination.
In the realm of Ex Works incoterms, the seller is not responsible for loading the goods on the vehicle provided by the buyer, nor for clearing the goods for export, unless otherwise agreed. The term Ex Works is often used while making an initial quotation for the sale of goods without any costs included. EXW significantly shifts the responsibility and risk from the seller to the buyer and is more favorable to the seller.
It’s important for parties engaging in trade under Ex Works incoterms to specify clearly the loading point and the point at which the risk transfers from the seller to the buyer. This level of clarity helps in avoiding any potential disputes or misunderstandings.
EXW is often used in conjunction with other incoterms to ensure a smooth and clear transition of responsibilities, costs, and risks.