EXW (Ex Works) is the Incoterms rule under which the seller places the goods at the buyer's disposal at its own premises or another named place, without loading them and without clearing them for export. Risk passes to the buyer at that moment. All obligations, including loading, export and import clearance, transport and insurance, lie with the buyer; it is the rule that places the least burden on the seller.
When is delivery completed under EXW?
Delivery is completed when the seller places the goods at the buyer's disposal at the place and on the date stated in the contract. Risk passes to the buyer even if the goods have not been loaded onto the vehicle. The address should be as precise as possible in the correct wording: "EXW Organised Industrial Zone, Kayseri, Türkiye Incoterms® 2020". The place of delivery may be the seller's factory or another warehouse.
What does the buyer take on?
| Task | Who is responsible under EXW? | Note |
|---|---|---|
| Packing and preparing the goods | Seller | Including packaging suitable for transport |
| Loading onto the vehicle | Buyer | Even if the seller loads, risk and cost remain with the buyer |
| Export clearance and licences | Buyer | The seller only assists with information and documents |
| Main carriage and insurance | Buyer | Insurance is not an obligation but the buyer's choice |
| Transit and import clearance, duties and taxes | Buyer |
Why does the export declaration cause problems?
Under EXW, the rule leaves export clearance to the buyer. In practice, however, it is difficult for a foreign buyer to lodge an export declaration in Turkey; the declaration is lodged in the name of a declarant established in Turkey. In addition, for the Turkish seller the declaration proving that the goods have been exported is needed for the VAT exemption and export records. As a result, even in EXW sales the seller often lodges the declaration. This is a departure from the division of tasks envisaged by the rule; if the contract does not state who bears the declaration costs and export licences, disputes arise.
The ICC also recommends considering FCA instead of EXW for cross-border sales. Under FCA, export clearance lies with the seller, and when delivery takes place at the seller's own premises, loading is also the seller's responsibility. All the differences are in the entry difference between EXW and FCA.
When is EXW suitable, and when is it not recommended?
- Suitable: In domestic sales; when the buyer has a company or a strong logistics partner in the seller's country; when the buyer will load with its own vehicles and its own team.
- Not recommended: In exports where the seller needs proof of export; for heavy or out-of-gauge cargo, because the risk of damage during loading stays with the buyer while the crane is on the seller's site; for controlled goods where the buyer cannot manage the export licences.
What happens if the seller does the loading?
In practice, the seller usually loads the vehicle itself with its own forklift or crane. Under EXW, this loading is at the buyer's risk and expense. In the event of damage during loading, the seller may additionally be held liable because of its own staff's fault. To remove this uncertainty, either FCA should be chosen or a clear clause such as "EXW, loading by the seller and at the seller's risk" should be written into the contract.
EXW and DDP: the two extremes
EXW is the rule that places the fewest obligations on the seller and DDP the most. The options in between, such as DAP with delivery at destination, allow the burden to be shared more evenly between the parties. A buyer purchasing on EXW terms can also buy a door-to-door logistics service to have the whole job handled by a single provider.
How does Voltim Global support you?
For EXW purchases, Voltim Global takes on the door-to-door delivery arrangement and regulatory consultancy on behalf of the buyer: loading at the premises, clarifying in whose name the export declaration will be lodged, and the main carriage are set up in a single plan.