EXW EXW (named place) Incoterms 2020

Ex Works
EXW (named place) Incoterms 2020
EXW suomeksi, in Finnish

ATTENTION! Incoterms 2020 takes effect on 1.1.2020. See also Incoterms 2010.

  • The seller delivers the goods by placing them at the disposal of the buyer at the named place at the agreed time of delivery.
  • The seller pays the costs and bears the risk of loss of or damage to the goods until he has delivered them.

  • The buyer takes delivery, when the seller has placed the goods at his disposal at the named place at the agreed time.
  • The buyer pays the costs and bears the risk of loss of or damage to the goods after the delivery.
  • The buyer carries out export and import formalities.
EXW (named place) Incoterms 2020

According to EXW the seller has minimum obligations. The seller delivers the goods by placing them at the disposal of the buyer at the agreed place and time. Such agreed place may be e.g. the yard or seller’s warehouse. The buyer, usually the carrier subcontracted by the buyer, loads the goods and takes them away.

The buyer pays the costs and bears the risks after the delivery of the goods. The buyer also carries out all export and import formalities including export and import clearance, export and import customs formalities, licences, duties and other costs and charges related to the export and import of the goods.

The custom of trade as defined by EXW suits for domestic trade or similar circumstances. EXW can hardly be used in export, because

  • a company may not let outsiders load and handle goods on their premises. If, however, the seller would load the goods, he would do so on behalf of the buyer, at his risk and on his behalf. The common practice in international road transport is that the sender loads the goods and the receiver unloads them
  • when goods are exported from EU, the exporter must be registered in the country of despatch either directly or through an agent and issue an export declaration
  • because EXW-trade is domestic trade, VAT authorities are interested in it. The seller may have difficulties to prove that the goods were exported out of EU.

When the seller or the buyer say that they are using EXW, the procedure is often actually similar to FCA.