Ex Works
Ex Works (EXW) is an Incoterms rule where the seller fulfills its obligation by making goods available at a named place, usually the seller's factory or warehouse. From that point, the buyer assumes all costs, risks, loading, transport, and export-related responsibilities. The seller does not load goods onto the buyer's vehicle or clear them for export unless separately agreed.
On the shop floor and in the warehouse, EXW functions as a factory-gate handoff. The seller prepares, identifies, and sets aside finished goods for pickup, but loading the buyer's vehicle is not required unless separately agreed. In materials tracking, this creates a critical distinction: the inventory transfer point is when goods are made available, not when they physically leave the building. As a result, warehouse status, shipping release, and financial responsibility can diverge if the ERP/WMS is not configured to reflect that moment. Buyers also need to build their own landed-cost model, because an EXW quote covers production cost, seller margin, and possibly packaging, while freight, insurance, customs, and destination charges remain outside it. This arrangement is popular when the buyer controls outbound logistics and wants direct control over carrier selection, pickup scheduling, consolidation, and international forwarding.
- Pickup and loading mismatch: An EXW shipment can stall at the dock when the buyer's carrier arrives without liftgate, pallets, straps, or a loading appointment, because the seller has no obligation to load. If the seller loads anyway, the buyer assumes the risk.
- Customs-clearance assumption errors: Buyers often expect the seller to handle export clearance, but under EXW the buyer generally manages all export procedures and customs compliance. Cross-border shipments can be delayed when the buyer lacks exporter-of-record capability at the named place.
- ERP/WMS ownership-date errors: Goods can be contractually delivered under EXW while still sitting on the seller's floor, so companies can misstate inventory ownership, available-to-promise, or revenue recognition when physical possession is treated the same as delivery.
Is EXW only for international shipments?
No. EXW applies to any transport mode and can be used for domestic or international moves.
Does the seller have to clear goods for export under EXW?
Generally no. Export clearance is the buyer's responsibility unless the parties agree otherwise.
Does EXW include loading onto the buyer's truck?
Generally no. The seller is not required to load, and the buyer handles collection logistics.