EXW Incoterms

When a product is sent abroad from Sweden, the delivery is not subject to Swedish laws. Instead, Incoterms apply, a set of international trade terms. In this article we clarify what the EXW incoterm means for both parties.

What is EXW?

EXW, or Ex Works, is a delivery term which is part of the International Commercial Terms (Incoterms), a global set of rules used for trade between countries. The Incoterms describe when the risk associated with a shipment is transferred from seller to buyer, and who is responsible for the costs of shipping and customs fees. EXW is one of eleven different such delivery terms, and all of the terms aim to reduce the risk of misunderstandings and legal disputes.

EXW delivery terms – what you need to know

When a sale is subject to EXW, the following applies:

  • The seller is responsible for providing the products at an agreed location and in a suitable packaging, for example at the warehouse or factory of the seller.
  • The risk is transferred to the buyer when the product has been placed in the given location, before loading for transport.
  • The buyer is, in other words, responsible for loading, transportation, insurance and any customs declarations in the receiving country.

When do EXW delivery terms apply?

For EXW to apply, both parties need to sign a purchase agreement in which EXW is specified as the delivery term. Other information which should be included in the delivery clause is the location and time of pickup of the product.

Use PostNord for your EXW deliveries

Are you looking for an affordable transporter who can ensure that your international shipments are delivered according to the terms that apply? We at PostNord can help you. We have vast experience of shipping various types of goods between countries, and can if desired act as your fulfilment agent.

In our business tool, Portal Business, it’s now easier than ever to send products abroad. You can schedule shipping, track shipments and much more straight in the portal, and we make sure that the correct forms are filled out when you send something to a specific country. Click here for more information.

If you have any questions about customs or what applies when different delivery terms are used, you’re always welcome to get in touch with our customer service team.

Frequently asked questions about the delivery term EXW

What does EXW stand for?

EXW stands for Ex Works and is a standardised trade term used for international business.

When is the risk transferred from the seller to the buyer when the deal is subject to EXW?

The risk is transferred to the buyer already at the location of the seller, for example the factory or warehouse of the seller.

What does EXW mean for the transportation of the shipment?

According to the rules of EXW, the buyer is responsible for the transportation and insurance of the shipment.

Who is responsible for loading the product if the sale uses EXW Incoterms?

The buyer is responsible for all aspects of transportation, including loading.

Who decides what delivery terms should apply?

This is up for negotiation between the buyer and seller – if you’re unhappy with the suggested term, you can suggest a different one.