Ex Works (EXW)

Ex Works is an international trade term (Incoterm) where the buyer is responsible for all costs and risks once goods are made available at the seller’s premises.

Examples: A manufacturer in Germany makes goods available at its factory; the buyer arranges transport, insurance, and customs.

Advantages: Minimal responsibility for the seller.

Challenges: Puts maximum burden on the buyer, who must handle export compliance and logistics.

Real-world example: Many small exporters use EXW to simplify their obligations, leaving importers to manage the rest.

Explain like I’m five: It’s like selling lemonade but making the customer come pick it up and carry it home themselves.

FAQ: Is EXW risky for buyers? Yes. Buyers take on full responsibility for costs, paperwork, and risks.

Bottom line: Ex Works is simple for sellers but complex and risky for buyers without strong logistics expertise.