——SOURCING GLOSSARY
Ex Works (EXW) — the seller's job ends at their own door
Ex Works, or EXW, is the Incoterm where the seller does the least and you do the most. The seller just makes the goods available at their factory or warehouse. From that door onward — loading, export paperwork, all freight, all risk — everything is yours.
It looks like the cheapest quote on paper. For most importers, it’s the riskiest.
Under EXW, what do you actually take on?
Everything after the goods are sitting on the seller’s floor:
- Loading them onto the first truck (even that is technically your risk).
- Export customs clearance in the seller's country.
- All transport — inland haulage, port charges, ocean/air freight, the lot.
- All risk from the moment they're "made available."
Why importers should be careful with EXW
Here’s the trap most quotes don’t mention: under EXW you’re responsible for export clearance in China — but a foreign buyer usually can’t legally file Chinese export declarations.
In practice the factory ends up doing it “as a favour,” off the books, which can leave you without a proper export record (and exposed if anything goes wrong).
For almost every importer, FCA is the better choice — it shifts export clearance back to the seller for almost no extra cost.
Frequently asked questions
You do — all of it. EXW puts every cost after the seller’s door on the buyer.
Rarely. The low price hides the cost and risk you take on, including export clearance you may not be able to do legally. FCA is usually better.
Under EXW you handle export clearance and getting goods to the port. Under FOB the seller clears export and delivers the goods onto the vessel.
Quote looks cheap on EXW terms? Check what you're actually taking on first.
We help importers navigate Incoterms and avoid the hidden costs that turn a “cheap” quote into an expensive mistake.