What Is the Seller Responsible for Under the EXW Incoterm?
Once the seller hands off the goods to the transportation provider who picks up the goods, they’re not on the hook for any costs or liability after that point.
What Is the Buyer Responsible for Under the EXW Incoterm?
Under the EXW Incoterm, the buyer is responsible for all the transportation costs, starting with the pickup from the seller’s warehouse or place of business. All the costs from there on out—loading and unloading; over-the-road, rail, and ocean freight; import and export fees, including customs duties; insurance, any port fees—are all the buyer’s responsibility.
Incoterms Insights: EXW
As we mentioned, EXW can be an attractive Incoterm for buyers, since it often comes with the lowest cost from the seller. However:
In summary, EXW can be a challenging Incoterm for a buyer who’s new to the business or country of origin.
This is where a freight forwarder can really come in handy. A forwarder can arrange all the transportation from the seller’s warehouse to the buyer’s final destination, including assembling all the paperwork for customs procedures, negotiating the best rates, and managing each moving piece.
If you’re considering a contract with the EXW Incoterm, talk to one of our experts. They can help you calculate the final costs and arrange for transportation, every step of the way.