incoterms exw definition

incoterms exw definition refers to one of the terms defined under the International Commercial Terms (Incoterms), which are a set of standardized shipping terms used in international trade. EXW stands for “Ex Works,” and it represents an arrangement where the seller makes the goods available for pick-up at their premises or another agreed location. Under EXW terms, the buyer assumes full responsibility for the cost and risk of transportation, including shipping, insurance, and customs duties. The seller’s responsibility ends once the goods are made available for collection. EXW is often used when the buyer has more control over the shipping process or has preferred shipping carriers. For example, in international trade, the buyer arranges for the shipping, and the seller simply makes the goods available for pick-up, often in the seller’s warehouse or factory. This term is commonly used in cross-border transactions, but it’s important for buyers to fully understand their obligations and risks under EXW before agreeing to these terms.