Ex Works · any mode

EXW meaning: the supplier hands over at the factory and you handle the rest

EXW (Ex Works) means the seller makes the goods available at their factory or warehouse. From that moment the buyer pays for and carries the risk of loading, export clearance, freight, insurance and import. It gives the lowest quoted price and the most work for the buyer.

Quick answer

Under EXW, cost and risk move to you at the pickup point

Supplier responsibility Buyer cost Buyer risk

The seller only makes goods available at the agreed pickup place. Everything after that, including export clearance in China, is the buyer's job.

EXWEx Works

Any mode · Named factory or warehouse pickup point

Seller makes the goods available at the named place. Buyer normally takes the transport chain and risk from pickup.

Cost responsibilitySupplier paysBuyer paysBuyer paysBuyer paysBuyer paysBuyer pays

Risk bearerSupplier bears riskBuyer bears riskBuyer bears riskBuyer bears riskBuyer bears riskBuyer bears risk

1Goods ready at factory
Cost: supplierRisk: supplier
2China pickup and inland move
Cost: buyerRisk: buyer
3Export clearance and origin handoff
Cost: buyerRisk: buyer
4Main international carriage
Cost: buyerRisk: buyer
5Import clearance, duty and tax
Cost: buyerRisk: buyer
6Final delivery to the named place
Cost: buyerRisk: buyer

Insurance: No seller obligation; buyer considers cover from pickup

Supplier covers

Goods ready at the agreed place, packed for transport
Telling you when and where the goods can be collected

Buyer covers

Loading at the pickup point, unless agreed otherwise
China inland transport to the port or airport
Export clearance and export documents
International freight and cargo insurance
Import clearance, duty and VAT or sales tax
Final delivery to your warehouse

Watch out

EXW looks cheapest, but export clearance is on you

Foreign buyers usually cannot clear exports in China themselves.

Someone has to collect the goods and handle the export paperwork before freight is booked. That is usually an agent or forwarder, and their cost belongs in your landed cost. Compare with FOB, where the supplier delivers to the ship.

Let us collect, clear and ship EXW goods Compare all 11 Incoterms

Questions

EXW: common buyer questions

What does EXW mean?

EXW (Ex Works) means the seller makes the goods available at their factory or warehouse, and the buyer takes over every cost and risk from there, including export clearance.

Is a 1688 price an EXW price?

Not unless the order says so. A domestic 1688 listing price often includes delivery inside China. If you want EXW, write it into the order with the pickup address and Incoterms 2020.

What is the problem with EXW for foreign buyers?

The buyer is responsible for export clearance in China, which a foreign company usually cannot do itself. In practice an agent or forwarder handles it, and that cost belongs in your landed cost.

EXW or FOB: which is better?

FOB usually works better for sea freight because the seller handles export clearance and delivery to the ship. EXW makes sense when you have a team or agent in China collecting from several suppliers.

Before you pay

Buying EXW from several suppliers?

Send the suppliers and pickup addresses. We collect, check, clear export and ship everything together.

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