EXW (Ex Works) is an Incoterms rule in which the seller makes the goods available at its premises or another named place. The goods are not loaded on any vehicle and not cleared for export. The buyer carries all costs and risks from that moment until the goods reach their final destination.
How EXW Works
The seller tells the buyer when the goods are ready for collection at the named place. The buyer’s trucker arrives, and the buyer pays for loading, export clearance, ocean freight and import. For example, a buyer in Buenos Aires might buy a used combine EXW from a dealer in Iowa.
Under EXW, the seller has no duty to load the goods on the buyer’s truck. A dealer with a forklift or a ramp often helps in practice, but that loading is at the buyer’s risk unless the contract says otherwise.
Export clearance is also the buyer’s task, which can be hard for a foreign buyer. The seller still provides the information needed for the export filing. Your forwarder will confirm who files it for a US export.
Why EXW Matters for Heavy Equipment Shipping
Loading is the main risk point for machinery bought EXW. A tracked excavator may need a lowboy trailer, a ramp or a crane at the seller’s yard, arranged and paid for by the buyer. If the unit is damaged during loading, the buyer usually bears the loss.
Buyers abroad often need a US partner to collect the machine and clear it for export. Atlantic Project Cargo can help with this through its equipment sourcing and procurement service, from the seller’s yard to the vessel.
| Step | Who pays and carries the risk under EXW |
|---|---|
| Making the goods ready at the named place | Seller |
| Loading on the buyer’s truck | Buyer |
| Export clearance | Buyer, with information from the seller |
| Inland trucking and ocean freight | Buyer |
| Import clearance and duties | Buyer |
EXW vs DDP
EXW and DDP (Delivered Duty Paid) split the work in opposite ways. With EXW the seller’s role ends at its own gate, while with DDP the seller delivers to the buyer’s site with duties paid.
Many equipment sellers quote EXW because it keeps their work to a minimum. A buyer comparing an EXW price with a DDP price should first add trucking, export, freight, insurance and import costs to the EXW figure.
Common Mistakes With EXW
- Assuming the dealer will load the machine at no risk to the buyer.
- Forgetting that the buyer is responsible for export clearance under EXW.
- Choosing EXW when FCA (Free Carrier) at the seller’s premises fits better, since the seller then loads and clears for export.
- Leaving out the exact pickup address and the opening hours of the seller’s yard.
- Comparing an EXW price directly with a CIF or DDP price.
FAQ
Bought a machine EXW and need it collected and shipped? Get a quote from the seller’s yard to your port.
