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Sourcing glossary

EXW: where the saving is, and where the trap is

EXW is the cheapest-looking term because everything from the factory gate onward is your responsibility. Understand that and you can tell whether the saving is real.

EXW

What it is

Under EXW the seller only makes the goods available at its own premises. The buyer carries everything from loading onward: inland haulage, export declaration, booking, ocean freight, destination clearance and delivery.

Why it matters

EXW suits buyers who already have their own China-side forwarder: you have the broker and the space, the factory just makes the goods, responsibility is clean and the price is lowest. If you have no logistics or brokerage presence in China, EXW hands you the hardest part.

Three points

  • EXW does not include loading; confirm loading cost and risk separately
  • Export declaration and export-tax paperwork sit with the buyer under EXW — arrange in advance
  • Compare like with like: pricing EXW against FOB is the classic misread

Three common traps

  • Assuming EXW means delivered to port — delivery happens at the factory gate
  • No export declarant arranged, so finished goods cannot leave
  • Using an EXW price to squeeze an FOB supplier — they can cut price but not responsibility

What we do about it

We work to the term you choose, but the quote states who performs each step and who pays for it. If you have no China-side brokerage, we say plainly that EXW does not fit and show FOB or DDP side by side.

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