Definition of EXW Incoterm
“Ex Works” means that the seller delivers when it places the goods at the disposal of the buyer at the seller’s premises or at another named place (i.e., works, factory, warehouse, etc.). The seller does not need to load the goods on any collecting vehicle, nor does it need to clear the goods for export, where such clearance is applicable.
This rule may be used irrespective of the mode of transport selected and may also be used where more than one mode of transport is employed. EXW is mostly suitable for domestic trade.
Explanation of the term
In simple terms, if you are the buyer and you are buying the goods from the seller on EXW terms, you will need to send your truck to the seller’s premises and collect the cargo from there and take care of all the other shipping requirements to get it to your destination.
Officially the shipper is NOT obliged to do anything other than provide you access to the cargo.
Of course, based on your relationship with the seller, there may be an unofficial option wherein the shipper may assist with the loading of the goods onto your vehicle, etc.
There is also an official option wherein you can include the words “LOADED” to the term EXW so that the seller may extend his service to assist with the loading operations.
However, if there is any damage to the cargo during that loading process, that risk and cost may still be yours as the buyer. It is vital, therefore, that this point is clarified with the shipper beforehand at the time of the signing of the sales contract.
In the case of EXW, it is safe to say that the seller has minimal obligations, risks & costs whereas the buyer has all the risks and obligations.
Pro Advice
As the EXW term places all the responsibility on you as the buyer and there is no obligation on the part of the seller to do anything other than provide the cargo. It may be prudent for you as the buyer to have a reliable freight forwarder at the origin port to take care of your best interests.
