{"id":28686,"date":"2024-01-01T14:00:00","date_gmt":"2024-01-01T14:00:00","guid":{"rendered":"https:\/\/www.tradefinanceglobal.com\/?page_id=28686"},"modified":"2025-02-20T13:22:54","modified_gmt":"2025-02-20T13:22:54","slug":"ex-works-exw","status":"publish","type":"page","link":"https:\/\/www.tradefinanceglobal.com\/incoterms\/ex-works-exw\/","title":{"rendered":"Ex Works (EXW) – Incoterms\u00ae 2020 Rule"},"content":{"rendered":"\n
\n
\n

\n Ex Works (EXW) – Incoterms\u00ae 2020 Rule <\/h2>\n
\n
\n
Last updated on 20 Feb 2025<\/div>\n
01 Jan 2024 . 7 min read<\/div>\n <\/div>\n <\/div>\n <\/div><\/div>\n\n\n\n
\"\"<\/figure><\/div>\n<\/div>\n\n\n\n
\n
\n
\n

Incoterm Basics<\/h4>\n <\/div>\n
\n \n Introduction to Incoterms <\/a>\n \n EXW <\/a>\n \n FCA <\/a>\n \n TFG Incoterms Resource Centre <\/a>\n \n CPT <\/a>\n \n CIP <\/a>\n \n DAP <\/a>\n \n DPU <\/a>\n \n DDP <\/a>\n \n FAS <\/a>\n \n FOB <\/a>\n \n CFR <\/a>\n \n CIF <\/a>\n \n Incoterms Courses <\/a>\n <\/div>\n<\/div><\/div>\n<\/div>\n\n\n\n

<\/p>\n\n\n\n

\n
\n
\n \n <\/div>\n
\n
\n
Bob Ronai<\/div>\n
\n Bob\u2019s background in exporting and importing stretches over more than 50 years,\u00a0initially in international banking then in the world of international commerce. <\/div>\n
\n \n \n Latest Post <\/span>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n\n\n

<\/p>\n\n\n

\n

\n Quick guide to Incoterms <\/h4>\n

Download our free short guide<\/p>\n

\n Short-Incoterms-Guide-724×1024 <\/div>\n \n Download now<\/span>\n <\/a>\n <\/div>\n\n
\n

\n Full Incoterms Guide <\/h4>\n

Buy our 96 page guide<\/p>\n

\n full incoterms commentary <\/div>\n \n Purchase<\/span>\n <\/a>\n <\/div>\n\n\n

Contents<\/h2>\n\n\n
\n
    <\/ul><\/div>\n\n\n

    <\/p>\n<\/div>\n\n\n\n

    \n

    Ex Works Incoterms (EXW)<\/h2>\n\n\n\n

    Ex Works (EXW) is the Incoterms\u00ae 2020 rule used to describe the delivery of goods by the seller at their own place of business, generally in their factory, offices or warehouse.<\/p>\n\n\n\n

    Ex Works Incoterm: an introduction<\/h2>\n\n\n\n

    Ex Works (EXW) is the Incoterms\u00ae 2020 rule used to describe the delivery of goods by the seller at their own place of business, generally in their factory, offices or warehouse. Since, under EXW, the seller does not need to load items onto a truck or worry about the freight once it has left their premises, this is the most favourable term for the seller.<\/p>\n\n\n\n

    Once the seller has informed the buyer that the goods for the contract have been identified and set aside, then the delivery is considered to have been made. At this point, the buyer bears the risk and is obliged to pay, even though the goods may still be in the possession and physical control of the seller. Not only that, it is not the seller\u2019s responsibility to load the goods onto the buyer\u2019s collecting means of transport.<\/p>\n\n\n\n

    How would this play out in real life? Will the seller allow the buyer\u2019s transport contractor to bring their own forklift and labour, and allow them to rampage around the seller\u2019s warehouse? What would be the insurance, workplace safety, and other ramifications of this?<\/p>\n\n\n\n

    \"\"<\/figure>\n\n\n\n

    <\/p>\n\n\n\n

    Ex Works Incoterms 2020 rule – key changes and updates<\/h2>\n\n\n\n

    If the goods are being exported, there are more problems with EXW.<\/p>\n\n\n\n

    Under EXW, the buyer is responsible for clearing the goods for export. The issue is, however, that in most countries, only an entity registered in that country can export. Add to that potential VAT\/GST issues because unless the seller has evidence of the export, they must charge this tax as it would be seen as a local sale.<\/p>\n\n\n\n

    In effect, using EXW as described in Incoterms 2020 is almost impossible.<\/p>\n\n\n\n

    <\/p>\n\n\n\n

    Ex Works Podcast<\/h3>\n\n\n
    \n
    \n