Tag: Ex Works

03 Jul 2017

What is Exw?

EXW stands for Ex Works, and it defined like “in factory, convenient place”. It is an Incoterm or international term of trade, which answers to a modality of purchase and sale for international transactions. The term EXW must accompany in an obligatory way of the name of the point of delivery.

 Ex Works Seller Responsibilities

This clause determines that the seller will deliver the goods directly in his establishment; the responsibility of this is to make sure that the products are packed, labeled and arranged so that the transport chosen by the buyer is responsible for taking the merchandise. After delivery made, the supplier disregards the following steps, which correspond exclusively to the customer.

It must also generate the physical and electronic invoice, along with the contract of sale, and run with the expenses of packing, weighing and marking the merchandise.

 Ex Works Buyer Responsibilities

The buyer must take care of the transportation, customs clearance, licenses, authorizations, taxes, insurance of merchandise and other formalities, in order to be able to take his merchandise to the final destination.

If the seller makes some kind of expense for the coordination of the sale, either with obtaining papers, licenses or some other, the merchant must replenish it.


Incoterms (“international trade terms”) are a set of rules grouped into three-letter words each, and these determine the rules governing international purchasing and sales transactions.

In the case of Ex Works, it is an agreement that works perfectly for a new company, or that lacks sufficient experience for international transactions and that it does not have agents to recommend it to its buyer.

In the case of buyer, this should ideally have contacts in the country of purchase to handle transportation, insurance, customs clearance, loading and unloading. By fulfilling these characteristics, the transaction is a success for both, buyers and sellers.

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