What is Ex Works?
Ex Works (EXW) is the Incoterms 2020 rule under which the seller delivers when it places the goods at the buyer's disposal at a named place, usually the seller's premises, not loaded on any collecting vehicle and not cleared for export. It is the rule with the minimum obligation for the seller and maximum obligation for the buyer, and it can be used for any mode of transport. Risk passes to the buyer at that point, and the buyer bears all costs from then on, including loading, export formalities, main carriage, import clearance and duties. The seller must only provide the goods, the commercial invoice and assistance, at the buyer's request and cost, in obtaining documents and information for export and import clearance. ICC itself cautions that EXW can cause problems with loading and export clearance and suggests sellers would often be better advised to use FCA.
Why it matters for forwarders
EXW looks simple but creates real friction for forwarders acting for the buyer. The buyer is responsible for export clearance in a country where it may have no legal presence, while customs authorities in many jurisdictions still expect the local seller to appear as exporter, which creates compliance and VAT evidence problems. Loading at the seller's dock is technically at the buyer's risk, so damage during loading becomes a dispute when the seller's forklift does the work. Confirm before pickup who will load, who will file the export declaration and who appears as exporter. Where these answers point back to the seller, recommend FCA seller's premises to align the contract with what actually happens.