What Is EXW (Ex Works)?
Quick Definition: EXW (Ex Works) means the seller's only responsibility is to make the goods available at their premises (factory/warehouse). The buyer is responsible for EVERYTHING else — loading, inland transport, export customs, freight, insurance, and import clearance.
EXW in China Sourcing
When a factory quotes "EXW Shenzhen," the price includes only the product itself. You (or your freight forwarder) must arrange:
- Loading goods onto truck at the factory
- Inland transport to Chinese port
- Export customs clearance (requires Chinese export license)
- Ocean/air freight
- Insurance
- Import customs clearance and duty payment
- Delivery to your warehouse
EXW vs FOB
| Factor | EXW | FOB |
|---|---|---|
| Seller Covers | Product only | Product + inland transport + export clearance |
| Export Clearance | Buyer (problematic for foreigners) | Seller |
| Best For | Buyers with China freight forwarder | Most international buyers |
Why Most Buyers Should Avoid EXW
EXW creates a practical problem: as a foreign buyer, you cannot handle Chinese export customs clearance yourself. You need a Chinese entity to act as the exporter of record. This usually means hiring a Chinese freight forwarder or agent anyway — so the "savings" of EXW are often illusory. FOB is the recommended Incoterm for most China sourcing.
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