Ex Works (EXW) is an Incoterm used in international shipping and logistics.

In this blog, we will explain what EXW shipping is, what obligations buyers and sellers have when using the EXW Incoterm, and when EXW logistics should be used. 

 

What does Ex Works mean?

EXW, or Ex Works, is an Incoterms rule that requires the seller to package, label, and deliver goods to an agreed-upon location for the buyer to collect. This is usually the seller’s factory or shipping depot. 

EXW logistics can be used for any method of transportation or in instances where multiple transportation methods are being used. 

 

What does the EXW Incoterm dictate?

The EXW Incoterm says that sellers are responsible for ensuring the goods are available, accessible, and packaged correctly at an agreed-upon location for the buyer to pick up. Buyers are then responsible for loading the goods onto the relevant vehicle and transporting them, assuming all risks associated with shipping and covering all costs that arise after collection. 

 

Seller

Buyer

  • Responsible for packaging goods safely and appropriately labelling them. 

  • Must deliver the goods and make them accessible to an agreed-upon location for the buyer to collect. 

  • Must help the buyer get the necessary paperwork, such as export licenses, though they are not responsible for the costs of these. 

  • Responsible for loading the goods onto the vehicle for transportation. 

  • Responsible for all export procedures.

  • Required to cover any expenses that arise once the goods have been collected. 

  • Assumes all risks associated with the shipping of the goods once collected. 

 

Top Tip: Sellers only need to ensure the goods are packaged appropriately and accessible for collection - the buyer is responsible for loading the goods onto the vehicle and all the risks associated with shipping. 

 

EXW Shipping Obligations

When using the EXW Incoterms rule, it is important to understand the different obligations of the seller and the buyer. These differences are outlined below: 

 

Obligations of the seller

When EXW shipping is used, the seller must: 

  • Package and label the goods appropriately.

  • Provide a suitable location for the collection of goods. 

  • Deliver the goods to the pre-agreed location. 

  • Ensure the goods are accessible for the buyer to collect. 

  • Assist the buyer with securing any relevant documentation, such as export licenses. 

 

Obligations of the buyer

Buyers engaging with EXW logistics must: 

  • Load the goods onto the vehicle at the collection point. 

  • Assume responsibility for any of the risks associated with the shipment of goods, including dealing with customs officials, transferring and unloading goods, and storing and reselling products. 

  • Cover all costs incurred during the shipping process, such as loading and transportation costs, customs documentation, fees and tariffs, terminal charges, and additional costs like insurance. 

 

When should EXW shipping be used?

Ex Works shipping can be used for any method of transportation in a range of contexts, including when there is more than one method of transportation involved. 

Sellers bear minimal responsibility when using the EXW Incoterm, so if they need to carry out additional tasks like arranging transportation or filing export customs clearance, this would not be the correct Incoterm to use. 

There are different advantages for buyers and sellers when using the EXW Incoterm too, which might influence the decision to select it:

 

Benefits of EXW for sellers

Sellers might choose to use EXW shipping for:

  • Minimal responsibility during the shipping process - the seller doesn’t have any liability for the shipment once the buyer has collected it. 

 

Benefits of EXW for buyers

Buyers can benefit from EXW logistics as well, including:

  • Having more control over the costs associated with the shipping process, as this is the buyer’s responsibility. 

  • Having more flexibility in choosing carriers for transporting the goods. 

  • Being in a better position to coordinate with third parties throughout the process. 

 

View the SEKO Guide to Incoterms

With over 30 years of experience in offering end-to-end logistics solutions, including ecommerce shipping, freight forwarding, and white glove delivery, SEKO is a reliable provider of award-winning logistics services across an extensive global network. 

For more information about Incoterms and shipping logistics, visit our expert guide outlining the most commonly used Incoterms and answering frequently asked questions. 

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