Q&A: What is the Term of EXW

When you buy or sell goods across national boundaries, seller and buyer must have a clear understanding of the terms for moving those goods to their destination. EXW, FOB, CIF and DDU are commonly used agreement models for international shipping. Each type of agreement specifies which party is responsible for the goods and the point at which responsibility transfers from the seller to the buyer.

EXW——Ex Works,  is an international trade term that describes an agreement in which the seller is required to make goods ready for pickup at his or her own place of business. All other transportation costs and risks are assumed by the buyer.

The seller is only responsible for packaging the goods and making them available at a designated location, such as the seller’s warehouse. He or she must also help the buyer obtain export licenses or other necessary documentation, but at the buyer’s expense