EXW (Ex Works)

EXW (Ex Works) represents the minimum obligation for the seller in international trade. The seller simply makes goods available at their premises—factory, warehouse, or other named location—and the buyer takes responsibility for everything from that point forward: loading, inland transport, export clearance, ocean freight, insurance, and import formalities.

When a supplier quotes "EXW Factory USD 1.80/meter," that price covers only the fabric sitting at the factory gate. Every other cost—trucking to port, export documentation, container loading, shipping, insurance, duties—falls to the buyer.

In theory, EXW gives buyers maximum control and transparency over logistics costs. In practice, it creates significant complications for international textile trade. Foreign buyers cannot easily handle export clearance in China; they lack the legal standing to file export declarations and typically don't have relationships with local customs brokers. Even when the contract says EXW, Chinese suppliers usually end up assisting with export formalities anyway, blurring the lines of responsibility.

For these reasons, experienced traders often recommend FCA (Free Carrier) as a more practical alternative when buyers want similar control. Under FCA, the seller handles export clearance and delivers goods to a carrier or named location, providing a cleaner handoff point that aligns with how transactions actually work.

EXW does make sense in certain situations: domestic transactions within China, cases where the buyer has a local agent handling logistics, or when buyers with sophisticated supply chain operations want to manage every detail themselves. Large retailers with dedicated sourcing offices in China sometimes prefer EXW for the visibility it provides into each cost component.

Buyers considering EXW should clarify upfront who will actually handle export customs formalities and ensure they have the capability—directly or through agents—to manage the logistics chain from the factory door.