What is EXW (Ex Works) Incoterms?

EXW (Ex Works) is an Incoterm that defines the responsibilities of the buyer and the seller in a contract for the sale of goods. Under EXW, the seller is responsible for making the goods available at their premises (factory, warehouse, etc.) and the buyer is responsible for arranging and paying for the transportation, insurance, and any other costs associated with the delivery of the goods.

When using EXW, the seller is not required to load the goods on the transport vehicle, or clear them for export. The buyer is responsible for all costs and risks associated with the transportation of the goods from the seller's premises to the final destination. The seller will only be responsible for making the goods available at their premises, on the agreed date and time, and in the agreed condition.

EXW is typically used when the buyer and the seller have a long-standing relationship and the buyer is familiar with the export procedures, or when the buyer is based in the same country as the seller and can arrange for the goods to be transported easily. This term is widely used when the goods are transported by the buyer himself, or by his agent, therefore, the buyer bears all the costs, risks, and responsibilities from the seller's warehouse to the final destination.