EXW is an Incoterms® rule suitable for trade within the EU. All the seller does is prepare the goods at an agreed location, often a business premises.
Seller arranges and pays for:
- Nothing. Seller only makes goods available for collection at the agreed location (often own premises).
Buyer arranges and pays for:
- Loading of goods into means of transport at the agreed location (often seller's own premises).
- Transport from the agreed location to final destination.
- Export formalities and documents.
- Import formalities and local import documents.
Suitable for:
- Trade within the EU.
- All forms of transport (rail, air, road, water).
Not or less suitable for:
- Trade outside the EU.
- Payment via Letter of Credit or documentary collection, as the buyer receives the Bill of Lading as the maritime carrier’s contracting party.
Transfer of risk from seller to buyer:
- After seller makes goods available for collection at the agreed location and date, without loading.
Points of attention:
- As a seller, have the buyer sign a transport declaration (article in Dutch) when trading within the EU.
- If seller loads goods into means of transport, then agree Incoterms® FCA, location seller.
- Agree upon an exact location (e.g. factory, warehouse, or seller premises), including an address.