What Is EXW (Ex Works)?
EXW (Ex Works) means the seller makes goods available at their premises (factory, warehouse). The buyer is responsible for everything from that point forward - loading, export clearance, freight, import duties, and delivery.
In simple terms: You pick up from the factory gate. Everything else is your problem.
Who Pays for What Under EXW
| Cost/Risk | Seller | Buyer |
|---|---|---|
| Making goods available | ✓ | |
| Loading at origin | ✓ | |
| Export customs clearance | ✓ | |
| Inland freight (origin) | ✓ | |
| Main freight (sea/air) | ✓ | |
| Cargo insurance | ✓ | |
| Import customs clearance | ✓ | |
| Delivery to destination | ✓ |
Risk transfer point: At seller's premises, before loading.
Pros and Cons of EXW
Advantages:
- Lowest quoted price from supplier
- Maximum control over shipping
- Choose your own freight forwarder
- Consolidate shipments from multiple factories
Disadvantages:
- You handle China export paperwork
- Need China export license (or agent)
- More complex, more things can go wrong
- Full risk from factory door
When to Use EXW
Good for:
- Experienced importers with China freight forwarders
- Consolidating multiple suppliers into one shipment
- When you want full control over logistics
- Large volumes where savings matter
Avoid when:
- First-time importers
- Don't have a freight forwarder in China
- Supplier offers reasonable FOB pricing
- Order is small or simple
Recommendation for most importers: Start with FOB (Free On Board). Supplier handles export and loading. You pay from the port. Simpler and less risky.