What Is EXW?

EXW is written with a named place, such as EXW Ludhiana factory. The ICC lists it among the eleven Incoterms 2020 rules. It places the least duty on the seller: the goods are made available at the named place and the buyer collects them. The buyer arranges the vehicle, loading, export formalities and all onward transport, and carries the risk from the moment the goods are placed at its disposal. The rule fits any mode of transport. Because export clearance falls to the buyer, an Indian exporter should check how the shipping bill will be filed when the buyer is abroad, and agree who files it.

For example, a Tiruppur manufacturer quotes USD 8,000 EXW Tiruppur. The buyer's forwarder collects the cartons from the factory gate and handles loading, export clearance and the voyage. The exporter's invoice shows EXW Tiruppur.

• Pricing: An EXW price is the lowest of the common terms because it carries no transport or clearance costs. Quote the place so the buyer knows where collection happens.
• Export clearance: An overseas buyer may find it hard to file export documents in India. Agree in the contract who does so and whether the seller helps, since the shipping bill is tied to the export.
• Bank compliance: Your AD bank may ask for the invoice and shipping documents when it matches receipts to an export under the FEMA export regulations. Keep proof that the goods left India under the right documents.
• GST and income tax: EXW is a delivery convention. GST and income tax treatment depends on the law, so ask your adviser rather than rely on the term alone.

The seller prepares the goods at the named place, the buyer collects them and handles everything after that, and risk passes on handover.

1. The parties agree EXW and name the place of collection, with the edition, for example Incoterms 2020.
2. The seller packs and marks the goods.
3. The seller tells the buyer when the goods are ready at the named place.
4. The buyer sends transport to collect and loads the goods.
5. The risk passes to the buyer once the goods are at its disposal.
6. The seller raises the invoice showing EXW and the place, and keeps proof of handover.

You quote your goods price with EXW and the named place of collection, and state that the buyer handles loading, export clearance and transport. Agree in writing who files the shipping bill.

1. Work out your goods price including packing and marking.
2. Name the exact collection place, for example EXW Ahmedabad warehouse.
3. State the edition, for example Incoterms 2020.
4. Agree the date the goods will be ready for collection.
5. Agree who files the export documents and who bears the cost of loading.
6. Show the same term on the proforma and commercial invoice.

EXW hands the goods over at the seller's premises and the buyer arranges loading and export clearance. FOB has the seller load the goods on board the vessel after export clearance. FOB gives the seller more control over Indian formalities.

• Cheapest and simplest: EXW looks simple for the seller, but it can complicate Indian export documentation when the buyer is abroad.
• Services: Incoterms cover the sale of goods. A services invoice does not carry EXW.
• Payment: EXW sets delivery, cost and risk. Payment timing is separate, see export payment terms.
• Law: EXW applies only when the parties name it in the contract. It is not a law.

• FOB: Seller loads the goods on board the vessel.
• CIF: Seller pays freight and minimum insurance to the destination port.
• DDP: Seller delivers goods cleared for import at the destination.
• Shipping bill: The customs document for goods exports.
• Incoterms: The ICC set of eleven trade terms.

Every rule and definition on this page is linked to its official source, checked on the dates below.

1. ICC, Incoterms rules, Eleven trade terms; Incoterms 2020 in force 1 January 2020 (checked 9 Oct 2026)
2. RBI, FEMA (Export and Import of Goods and Services) Regulations, 2026, FEMA 23(R)/2026-RB, Export monitoring and AD bank matching of receipts (checked 9 Oct 2026)