EXW, or Ex Works, is an international trade term defined by the International Chamber of Commerce (ICC) in the Incoterms rules. It specifies the responsibilities, costs, and risks associated with the delivery of goods from a seller to a buyer in an international transaction. Under EXW terms, the seller has the least amount of responsibility and the buyer has the most.

Delivery Point

In an EXW transaction, the seller's primary responsibility is to make the goods available at their premises or another named place (e.g., their factory, warehouse, or office). The seller's responsibility ends as soon as the goods are made available at this specified location.

Seller's Responsibilities

Under EXW, the seller is responsible for:

• Packaging and preparing the goods for export.
• Making the goods available at the agreed-upon place.
• Providing the buyer with any necessary documents, like invoices, export licenses, or other documentation.

Buyer's Responsibilities

Loading the goods onto a transportation vehicle, such as a truck or container.

• All transportation costs, including export fees, shipping, insurance, import fees, and any other charges associated with transporting the goods from the seller's location to the final destination.
• Handling import customs formalities, duties, taxes, and clearances.
• Unloading the goods at their own premises or another specified location.

Transfer of Risk

Risk is transferred from the seller to the buyer at the point of delivery, which is the seller's premises or another named place. From that moment, the buyer bears all risks associated with the goods, including damage, loss, or theft.

EXW is often used when the buyer wants maximum control over the shipping process, has a strong presence in the seller's country, or can obtain favourable shipping rates due to their local connections. However, it places a significant burden on the buyer, as they are responsible for all aspects of transportation and risk once the goods are made available by the seller.