EXW
Ex Works
Minimum seller obligation - goods are made available at seller's premises. Buyer arranges everything from pickup.
Visual Guide - Cost & Risk Transfer
Obligations & Cost Breakdown
Seller Obligations
- Make goods available at premises
- Provide packaging suitable for transport
- Notify buyer when goods are ready
Cost Responsibility:
Buyer Obligations
- Arrange all transport from seller's premises
- Handle export and import customs clearance
- Bear all costs from seller's premises
- Obtain all necessary licenses
Cost Responsibility:
Risk Transfer Point
Seller's premises (factory/warehouse)
Insurance Requirement
Buyer's responsibility (recommended)
Real African Trade Examples
Handicrafts: Morocco → France
EXW MarrakechHandwoven rugs from Marrakech workshop
French importer has established courier networks and prefers collecting directly from artisan cooperatives. Minimal seller logistics capability.
FCA Casablanca if consolidating multiple suppliers
Raw Minerals: DRC → China
EXW LubumbashiCobalt ore from mining site
Chinese buyers send their own logistics teams to handle loading, export, and shipping from mine sites.
FCA Dar es Salaam if exiting via Tanzania
Common African Trade Usage
Rarely used in African exports due to complex export clearance requirements. Some mineral/mining exports use EXW when large international buyers handle all logistics from the mine site. Small artisan sellers may default to EXW due to limited logistics capability.
Common Mistakes with EXW
Seller Loading Without Agreement
The Mistake: Seller loads goods onto buyer's truck without a written 'EXW Loaded' agreement.
The Problem: If goods are damaged during loading, neither party's insurance may cover it - creating a liability gap.
The Solution: Always specify 'EXW Loaded' if seller will handle loading, and ensure insurance covers the loading process.
Buyer Not Arranging Export Clearance
The Mistake: Buyer assumes seller will handle export customs formalities.
The Problem: Under EXW, the buyer must clear goods for export - which is extremely difficult in a foreign country, especially in Africa where export permits can be complex.
The Solution: Consider FCA instead, where seller handles export clearance. EXW is best when buyer has a local agent.
When to Use EXW
Best For
- Experienced importers with local logistics capability
- When buyer has better freight rates
- Domestic sales converted to export
Avoid When
- First-time exporters
- When buyer lacks export knowledge
- High-value goods without proper logistics