Incoterms EXW — Ex Works
EXW under Incoterms 2020: delivery before loading, cost and risk allocation, export-clearance limits, and differences from FCA.
Tags: commercial, delivery, incoterms
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Meaning and edition
EXW (Ex Works) is an ICC trade rule usable with any transport mode. Under Incoterms® 2020, delivery occurs when goods are placed at the buyer's disposal at the agreed delivery point, without loading onto the collecting vehicle. The buyer ordinarily bears risk from that point and handles applicable export clearance. The named place may be the seller's premises or another location. ICC, EXW explanatory notes 1–3, A2 and B3/B7
The contractual reference combines the rule, named place or point, and edition: for example, the illustrative notation EXW [warehouse address, collection bay] Incoterms® 2020. The year identifies the intended rules; the location identifies delivery rather than the buyer's eventual destination. ICC, incorporating the rules and delivery points
Delivery, risk and costs
The following is a condensed allocation under the unmodified 2020 rule, not a complete statement of every exception. ICC, EXW A1–A10/B1–B10
| Matter | EXW allocation |
|---|---|
| Goods and preparation | Seller supplies conforming goods and invoice; pays necessary checking, packaging and marking, subject to the rule's packaging exceptions. |
| Normal risk transfer | Buyer bears loss/damage risk following A2 delivery. B3 separately addresses missing buyer notices for identified contract goods. |
| Transport and subsequent costs | Buyer arranges carriage from delivery and normally bears subsequent costs; seller retains pre-delivery costs except B9 allocations. |
| Customs formalities | Buyer performs and pays applicable export, transit and import clearance. Seller provides requested documentary/information assistance at buyer risk and cost. |
Cross-border limits and FCA
Seller loading does not itself change the EXW delivery point. ICC's loading note identifies possible buyer exposure even during seller loading; the parties' agreement on loading risk matters. ICC, EXW explanatory note 5
A contractual allocation cannot establish a foreign buyer's legal eligibility to make export declarations. ICC's January 2025 regulatory-barriers report describes country-dependent obstacles and potential tax or regulatory obligations under EXW. Its evidence is a non-exhaustive December 2024 snapshot, not current law for every jurisdiction. Domestic delivery and cross-border movement therefore present different clearance questions. ICC, introduction and EXW guidance, pp. 2 and 4
FCA (Free Carrier) differs in two ways: the seller handles applicable export clearance, and delivery at the seller's premises includes loading onto the buyer-arranged transport, with loading risk remaining with the seller until delivery. At another named place, FCA delivery instead occurs on the seller's arriving vehicle, ready for unloading, at the disposal of the buyer-nominated carrier or person. FCA does not transfer import clearance to the seller. ICC Academy, EXW/FCA comparison, 7 January 2025
Explanatory synthesis: EXW with informal loading help and FCA at the seller's premises describe different delivery obligations. A loading charge alone does not describe who bears loading damage; neither term alone proves that the proposed customs arrangements are legally available. ICC, EXW loading note; ICC, regulatory-barriers introduction
Coverage and source limits
This reference concerns the 2020 edition, not an assumed interpretation of an undated “ex works” quotation. Incoterms allocate delivery obligations, risk and costs; they do not determine title transfer, payment terms, tariff imposition, sanctions or dispute law, and do not replace a sale contract. ICC, what the rules do and do not cover
The ICC Digital Library's publicly accessible selected EXW/FCA text is the primary rule source here. The Academy comparison is secondary commentary by Miguel Angel Bustamante Morales and expressly disclaims being an official ICC or ICC Academy position. This article establishes no customer agreement, current territorial clearance entitlement, tax rate or legal conclusion. Academy authorship and disclaimer
Related reference
Commercial terms concerns separate commercial terms.