What is Group E and the EXW (Ex Works) term?

Incoterms in simple words

The international Incoterms rules divide delivery terms into four groups based on the level of responsibility assumed by the seller and the buyer:

🔹 Group E – Minimum seller obligations (EXW)
🔹 Group F – Seller delivers goods to the carrier; buyer pays for the main carriage (FCA, FAS, FOB)
🔹 Group C – Seller pays for main carriage, but risk transfers earlier (CFR, CIF, CPT, CIP)
🔹 Group D – Maximum seller responsibility, including delivery to the final destination (DAP, DPU, DDP)

🔍 Today, we focus on Group E, specifically the EXW (Ex Works) term.

Under EXW, the seller makes the goods available at their premises (factory, warehouse, office, etc.). From that moment, all costs, risks, and logistics arrangements are the buyer’s responsibility.

Key features of EXW:

• The seller is not obliged to load the goods or handle export clearance
• The buyer is responsible for:
  ✅ Collecting the goods
  ✅ Export documentation and customs clearance
  ✅ International transportation
  ✅ Import procedures and final delivery

This term offers minimal responsibility for the seller, but maximum control for the buyer.

When is EXW advantageous?

• If the buyer has experience in logistics
• When the buyer has trusted logistics partners
• For full control over transportation
• In cases of regular shipments to optimize costs

Disadvantages of EXW:

• Not ideal for inexperienced buyers
• Requires close interaction with customs and logistics service providers
• The seller has no control or liability over the goods once they’re made available

Example:

🇩🇪 A German company buys equipment from a supplier in Baku under EXW Baku, Azerbaijan. The seller simply makes the goods available at their warehouse — the buyer handles everything else.

⚠️ Important:

EXW is the starting point in the Incoterms system.
If you are new to international logistics, consider exploring terms from Groups F, C, or D, which offer a more balanced division of responsibilities.

💡 Conclusion:

EXW is about control and responsibility.
If you have the expertise and reliable partners — you gain flexibility and independence.
If not — consider choosing other Incoterms where the seller takes on more of the logistical burden.