What is ‘Ex Works (EXW)’
Ex Works (EXW) is an international trade term that describes an agreement in which the seller is required to make goods ready for pickup at his or her own place of business. All other transportation costs and risks are assumed by the buyer.
BREAKING DOWN ‘Ex Works (EXW)’
This arrangement is extremely favorable to the seller at the buyer’s expense. The seller is only responsible for packaging the goods and making them available at a designated location, such as the seller’s warehouse. He or she must also help the buyer obtain export licenses or other necessary documentation, but at the buyer’s expense.
Once the goods have been placed at the buyer’s disposal, the buyer is responsible for all costs and risks related to the goods. In practice, this means loading them onto a truck, transferring them to a train, ship or plane, perhaps multiple times, handling customs procedures, unloading them at their destination and storing, using or reselling them, as the case may be. Even if the seller does help the buyer by loading the goods onto a truck, for example, the buyer is the one liable for damage during this process.
EXW (Ex Works)
EXW price is the factory price for the products with no shipping is included. The buyer must arrange transportation all the way from the factory floor in China to the final destination.
Export clearance: No
Transport to Port of Loading in China: No
Sea Freight charges: No
Port of discharge charges: No
Inland transport: No
