Incoterms® 2020 · E: departure

EXW Ex Works

The seller makes the goods available at its premises. The buyer does everything else, including loading and export clearance.

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Delivery point: Seller's premises or another named place, not loaded on any vehicle
Risk passes: When the goods are placed at the buyer's disposal at the named place
Transport mode: Any mode, including multimodal
Export clearance: Buyer
Import clearance: Buyer
Insurance: Not required of either party

Responsibility matrix

Costs and risk, stage by stage

EXW puts the minimum obligation on the seller. The seller packs the goods and makes them available at its factory or warehouse on the agreed date; from that moment the buyer bears all costs and risks, including loading onto the truck and export customs clearance.

Seller pays
Buyer pays
Depends on the contract of carriage or the named place
Risk passes to the buyer

01 Loading at seller's premises Buyer pays
02 Pre-carriage to export terminal Buyer pays
03 Export clearance Buyer pays
04 Origin terminal and loading on board Buyer pays
05 Main carriage Buyer pays
06 Destination terminal charges Buyer pays
07 Import clearance, duties and taxes Buyer pays
08 Carriage to named destination Buyer pays
09 Unloading at destination Buyer pays

Who does what

The seller must

Provide goods, invoice and conformity documents as in the contract
Pack and mark the goods for transport
Make the goods available at the named place on the agreed date
Notify the buyer when the goods are ready
Assist, at the buyer's cost and risk, with export documents and information

The buyer must

Pay the price
Collect the goods and load them, at its own risk
Carry out and pay for export clearance, transit and import clearance
Arrange and pay all transport and insurance
Provide evidence of having taken delivery

When to use it

You have your own forwarder and agent in the seller's country
Domestic trade, where no export clearance is needed
Collecting samples or small lots from a nearby supplier

Be careful when

You cannot be the exporter of record in Vietnam: a foreign buyer usually cannot clear export there
You need proof of export for VAT purposes
Loading at the seller's site involves risk you do not want: FCA puts loading on the seller

Tip for buying from Vietnam

Vietnamese export declarations must be filed by an entity with a Vietnamese business code. In practice, buyers asking for EXW end up relying on the seller to clear export anyway. Agree FCA instead, so the responsibility is written down.

How to write it

EXW Seller's factory, Lot A2, VSIP II Industrial Park, Binh Duong, Vietnam, Incoterms® 2020

Compare with

This guide summarises the Incoterms® 2020 rules in plain language for planning. It is not the official text. Incoterms® and the Incoterms® 2020 logo are trademarks of the International Chamber of Commerce. For the full rules, see ICC publication No. 723E.

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