Definition
EXW (Ex Works) is the Incoterms® 2020 rule with the seller’s minimum obligation: make the goods available at the named place (usually the seller’s plant or warehouse), not loaded. The buyer bears costs and risks from that point, including customs.
If you quote EXW for the “lowest price”, the buyer pays the full logistics stack — including export unless you choose another rule.
What EXW means in practice
Any-mode: usable with any transport, including multimodal.
Delivery occurs when goods are available at the agreed place and time and identifiable.
If the seller loads “as a courtesy” without agreeing it, loading risk becomes a dispute — use FCA.
Why it matters (shipper / 3PL / carrier)
1.Shipper
As seller, EXW lowers the list price but removes control of loading and export; as buyer, you own almost the full logistics stack.
2.3PL / freight forwarder
Often picks up at a third-party plant, books carriage and, if needed, export entry — the Incoterm must match who signs export clearance.
3.Carrier
Needs appointment, plant access, and clarity on who loads; without that, origin detention and “ghost” plant charges are routine.
Mexico–US: when it applies
1.Small groupage
Buyer sends a truck to plant and can clear export.
2.Avoid for FCL
If seller loads the container at plant, use FCA.
3.Documentary credit
EXW complicates the transport document.
Ops checklist
Place
Exact plant.
Loading
Who loads?
Export
Buyer.
Edition
Incoterms® 2020.
Common Mexico–US mistakes
1.EXW + seller loads
Common MX plant practice; loading risk stays ambiguous — document FCA.
2.Export “by seller” on the entry
Under EXW the buyer (or their agent) must be able to clear export; if not, change the rule.
3.No place / window
“EXW Mexico” without plant and time window creates wait time and origin charges.
4.Ocean mindset on truck
Copying sea habits onto plant pickup; EXW/FCA are the right origin rules for road.
OCL and the file
OCL does not choose the Incoterm or replace legal/customs advice. Under EXW, the file should show who picked up and with what timestamp/POD before fighting charges.
Sources and further reading
- Pillar: Incoterms® 2020.
- Siblings: FCA · FOB · DAP.
- ICC — Incoterms® 2020 (official publication; registered trademark). OCL educational paraphrase.
Key takeaways5 points
- EXW (Ex Works) = seller’s minimum duty: make goods available at the named place, not loaded.
- Only Incoterms® 2020 rule where the seller does not clear export.
- Buyer takes loading, carriage, insurance (if bought), and customs.
- On MX practice, FCA is often healthier when the seller loads the truck or container.
- Incoterms® is an ICC trademark; this entry is educational.
Is EXW creating ghost plant charges?
Frequently asked questions
The buyer. It is the only Incoterms® 2020 rule where the seller does not handle that formality (they still assist with information at buyer’s cost).
Not by default. If you want the seller to load, agree FCA or an explicit contractual variant.
It yields a low quote but little service. FCA at plant is usually more professional.
Yes as an any-mode rule, but only if the buyer controls pickup, loading, and export. If the MX seller loads at plant, use FCA.
Only if you cite Incoterms® 2020 and the exact place. Without edition and place, there is no clear rule in a dispute.
ICC Incoterms® 2020 rules. This page is an educational paraphrase, not a legal opinion.