EXW: Incoterms Delivery Terms for Your Business

International trade requires strict fulfillment of obligations by both parties to the foreign economic contract. These obligations are governed by the globally accepted Incoterms rules. One of the frequently used terms is EXW (Ex Works). The literal meaning of this term in English is "from the factory."

What are EXW Delivery Terms

This is a basic trade term under which the seller fulfills their obligations for the delivery of goods at the moment they are ready at the enterprise or warehouse. The bulk of the obligations are transferred to the buyer, who assumes responsibility for the product received from the manufacturer throughout its journey to the final destination.

Thus, EXW are delivery terms that minimize the obligations of the seller, the manufacturer, and maximize the responsibility of the buyer, the customer.

Features of Delivery Under EXW Terms

1. Documentation. Under EXW terms, the seller only provides the goods and the necessary documents confirming readiness for shipment.
2. Transportation. Customs clearance and the delivery of goods from China to Ukraine or in any other direction is entirely the responsibility of the recipient.
3. The possibility for the parties to choose one of two schemes: ex-works (the enterprise where the finished product is made available to the buyer) or ex-warehouse (the place where, by agreement between the parties, the seller is obliged to deliver the goods). In the first case, the buyer picks up the batch of goods from the production site, in the second – from the supplier's warehouse.

Responsibilities of the Parties Under EXW Rules

The implementation of EXW Incoterms conditions implies the following distribution of responsibilities.

Seller:

• preparation and packaging of the product in such a way that it is ready for export;
• providing the product at the buyer's disposal at the seller's enterprise or warehouse;
• informing the recipient about the readiness of the batch for shipment;
• ensuring the buyer's access to the product, i.e., placing it in a convenient location for shipment.

For the buyer, EXW delivery terms imply taking responsibility from the moment the seller notifies them that the goods are ready for shipment. Their obligations include:

• loading the goods onto their own or rented transport; 
• organizing and paying for the transportation of the goods from the factory/warehouse to the final destination, with independent selection of the type of transport and carrier; 
• arranging the necessary licenses, certificates, and permits; 
• cargo insurance (an optional element under EXW terms); 
• customs clearance for both export and import, with the proper documentation package; 
• paying all costs associated with customs procedures (duties, taxes, excise duties, fees), covering the costs of customs brokerage services or other logistics intermediaries;
• unloading at the destination.

Delivery of goods from China to Ukraine

Get more information

Advantages and Disadvantages of EXW Terms

Obviously, EXW delivery terms are максимально convenient for the manufacturer or seller. For the buyer, however, they come with both advantages and disadvantages.

EXW Incoterms are clearly not suitable for beginners who have never dealt with exporting goods.

How EXW Price is Calculated

The EXW price for the seller is minimal because all costs from the moment of goods transfer fall on the buyer. Essentially, the product is sold at the specified price (which includes all other costs unrelated to transportation). By agreement, the seller may increase the price if:

• Special packaging is required;
• The goods have been stored in a warehouse;
• The buyer needs loading services (either renting equipment or loading by the seller’s staff).

EXW Incoterms 2020 states that the price includes only the costs up to the moment of goods transfer at the seller’s premises. All further expenses are the buyer’s responsibility.

Therefore, it's essential to weigh all the pros and cons, as EXW delivery (self-pickup) is significantly more expensive for the buyer compared to other Incoterms terms.

Key Differences Between EXW Incoterms 2020, 2010, and 2000

The differences between the 2020, 2010, and 2000 versions lie only in clarifications and adaptations to modern business realities, while the core concept remains unchanged.

The EXW Incoterms 2000 delivery terms are already outdated, and the latest version of the 2020 one is being applied in international trade. Key updates introduced:

• Incoterms 2010 EXW: clarified that the seller is not obliged to load the goods onto the buyer’s transport unless explicitly agreed beforehand. It introduced a distinction in insurance responsibilities (insurance is not mandatory under EXW). It also specified customs clearance obligations: in EXW, the buyer is responsible for both export and import clearance.
• EXW Incoterms 2020: more emphasis was placed on security measures and the distribution of responsibilities for customs clearance. It explicitly states that the buyer assumes all risks and expenses from the moment the seller makes the goods available (e.g., at the factory or warehouse). It highlights that the seller may, but is not obliged to, assist with export clearance. One of the main changes is the use of electronic documentation.

The differences between EXW (Ex Works / Ex-Factory) in different Incoterms editions are minimal, but it is recommended that the latest version be followed.

Profitable Supplies on EXW Terms from DiFFreight Company

We guarantee strict adherence to EXW terms while ensuring a high level of service for each client. The professional international logistics services provided by DiFFreight include:

• experience and professionalism. Our qualified and competent specialists effectively organize the logistics process with strict compliance with Incoterms rules; 
• comprehensive solutions. DiFFreight offers services for organizing transportation, insurance, and customs documentation;
• individual approach with a focus on business needs and client requests;
• optimization of expenses. We set competitive rates for our services, as well as offer the most advantageous solutions, which helps reduce the EXW cost.

DiFFreight is aimed at long-term cooperation, so it strives to create comfortable conditions for its clients and make their logistics activities as efficient as possible.