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What Is EXW Shipping? A Clear Guide for Buyers and Sellers
Created on 11.14
Not all shipping terms are created equal - some favor the seller, some the buyer. EXW shipping leans heavily in one direction. In fact, 85% of U.S. imports are handled under EXW or FOB Incoterms.
With Ex Works, the seller’s job ends the moment the goods are made available, often right at their warehouse or factory. From there, it’s up to the buyer to handle everything: pickup, customs, freight, and final delivery.
This setup can work well, but only if you know exactly what you're doing.
Let’s take a closer look at how EXW shipping works, what it demands from both sides, and when it’s actually a smart choice.
What Is EXW Shipping?
EXW or Ex Works is an export formal that delegates the most responsibilities to the buyer. In EXW, it is the sole responsibility of the seller to get the goods ready where they are normally at their warehouse, at their factory, some other mutually understandable location.
That’s it. Once that is done, it is the problem of the buyer thereafter.
The purchaser organises the transportation, covers all freight and duties, as well as clearing customs in both countries. Risk of damage or loss is also transferred as soon as the goods are made available.
💡 Example: A U.S. importer buys auto parts from a supplier in Germany. Under EXW, the German seller prepares the shipment and makes it ready at their warehouse. The U.S. buyer then arranges pickup, handles export documents in Germany, pays for ocean freight, clears U.S. customs, and manages last-mile delivery.
What Does the Seller Handle in EXW Shipping?
Sellers have minimal obligations under EXW. Their only requirement is to make the goods available at the named location - on time, in the right condition, and with access for pickup.
They do not need to load the goods, file any export documents, or arrange transportation. Even helping with customs paperwork is optional (unless otherwise agreed).
That’s why EXW is popular with manufacturers and local exporters who want to stay out of the logistics process entirely.
What Is the Buyer Responsible for in EXW Shipping?
EXW puts most of the pressure on the buyer. Once the goods are available at the seller’s location, the buyer is responsible for:
- Picking up the goods (often hiring a freight forwarder)
- Loading them onto the transport vehicle (unless the seller agrees to help)
- Handling export clearance and documents in the seller’s country
- Booking international freight (air, sea, rail, etc.)
- Import customs clearance and taxes
- Final delivery to the destination
If you're not experienced in international logistics, EXW can feel overwhelming.
That’s why it’s usually best for buyers who have existing freight partners or work with a full-service logistics provider - like Dafey Logistics, for example - who can step in to manage the whole chain, even if the seller won’t assist.
⚡ Pro tip: If you’re the buyer, make sure your freight partner can handle origin clearance and pickup. Some sellers using EXW won’t even lift a box onto the truck.
When Should You Use EXW Shipping?
EXW isn’t for everyone - but there are a few situations where it makes perfect sense.
When EXW Works Well
- You’re buying from a supplier who doesn’t handle shipping
- You already have a trusted freight forwarder managing your logistics
- You want to control the entire shipping process
- The seller is in the same country or region as you (less paperwork)
It’s also commonly used in domestic sales, especially in manufacturing and wholesale.
When to Avoid EXW
- You’re new to international logistics
- You don’t have a broker or freight partner to manage pickup and clearance
- You’re shipping from countries with complex export laws
- The seller’s location is hard to reach, remote, or not well-connected
Many buyers mistakenly agree to EXW just because it’s cheaper upfront. But once you add in the logistics cost, surprise paperwork, and time spent fixing issues, it often turns out more expensive than expected.
Example of EXW Shipping (Step by Step)
Let’s say a French furniture distributor is buying goods from a factory in China under EXW terms. Here’s how the responsibility breaks down:
- The Chinese seller makes the packed goods available at their factory gate.
- The French buyer hires a trucking company to pick up the pallets.
- The buyer arranges export clearance in China and pays related fees.
- Goods are sent via sea freight to France - arranged and paid for by the buyer.
- French customs clearance and import duties are handled by the buyer.
- The buyer arranges final delivery from the port to their own warehouse.
At no point is the seller involved in transport, customs, or paperwork. The buyer controls everything.
⚡ Pro tip: If you're picking up EXW goods in China, make sure your local logistics partner has a Chinese business license; foreign trucks aren’t allowed to access most local factories without it.
EXW vs DDP Shipping: What’s the Difference?
While EXW puts most of the responsibility on the buyer, DDP shifts it almost entirely to the seller - here’s how they stack up:
Feature | EXW Shipping | DDP Shipping |
Who arranges transport? | Buyer | Seller |
Who handles export clearance? | Buyer | Seller |
Who pays for freight? | Buyer | Seller |
Who manages import duties & taxes? | Buyer | Seller |
Risk transfer point | At seller’s location (before loading) | At buyer’s location (after delivery) |
Best for | Experienced buyers with strong logistics teams | Buyers who want a hassle-free shipping experience |
Seller's involvement | Minimal | Full-service, end-to-end |
Common use cases | Domestic trade, B2B wholesale | Cross-border retail, international e-commerce |
Advantages and Disadvantages of EXW Shipping
Like any shipping method, EXW has its pros and cons depending on your role.
✅ Advantages for Sellers
- Very low responsibility: just prepare and release the goods
- No need to understand foreign customs or freight logistics
- Minimal liability or risk after goods are made available
This makes it attractive to small manufacturers or exporters with no in-house logistics team.
⚠️ Disadvantages for Buyers
- All costs and risks fall on the buyer from the start
- Requires experience with customs and shipping rules in both countries
- Can result in delays if the seller refuses to help with loading or documents
If the buyer doesn't have local agents or brokers at origin, they may run into obstacles, especially with strict customs environments.
Potential Pitfalls and How to Avoid Them
The biggest issue with EXW is assuming the process will be simple. In reality, pickup and export formalities vary by country. Some countries legally require the seller to handle export clearance - even under EXW - which can cause confusion.
Buyers should clarify these points upfront:
- Will the seller assist with loading? (It's not required under EXW.)
- Can the seller help with export paperwork, if needed?
- Is the pickup point easily accessible for your freight team?
To avoid costly mistakes or shipment delays, many buyers partner with experienced logistics teams.
👉 Dafey Logistics helps clients manage the complexities of EXW by coordinating pickups, handling compliance issues, and covering gaps left by sellers who prefer minimal involvement.
Final Thoughts on EXW
EXW shipping gives the seller maximum simplicity and the buyer full control - but it’s not for the faint of heart. If you’re new to global shipping or working with a seller in a complicated export country, EXW might end up costing more in time and stress than it’s worth.
That said, if you know what you're doing - or have the right team behind you - EXW gives you flexibility, control, and speed.
👉 At Dafey Logistics, we help importers manage everything from EXW pickup to customs and final delivery. So even if the seller steps back, you won’t be left figuring it all out on your own.
❓Frequently Asked Questions❓
What does EXW mean in shipping?
EXW, or Ex Works, is a shipping term where the seller simply makes the goods available at their location, like a warehouse or factory. From that point on, the buyer handles everything: pickup, export, freight, customs, and delivery.
Who pays for shipping on EXW?
The buyer pays for all shipping costs under EXW. That includes local pickup, international freight, and last-mile delivery, right from the seller’s door to the final destination.
What is the difference between FOB and EXW?
With EXW, the buyer is responsible for everything starting at the seller’s site. With FOB (Free On Board), the seller takes care of export clearance and loading the goods onto the ship, so the buyer’s responsibility starts a bit later.
What is the EXW price in shipping?
The EXW price only includes the cost of the goods themselves, ready for pickup at the seller’s location. It doesn’t cover any shipping, insurance, duties, or logistics, those are fully on the buyer.
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