EXW Price: What Is Included and What You Pay on Top

What does an EXW price actually include?

Under Incoterms 2020, EXW means the seller makes the goods available at the named place, which need not be a factory. Ask for the full address, precise collection point and collection arrangements before comparing offers.

The seller supplies the contracted goods and commercial invoice and pays for checks necessary for delivery. The seller also pays for packaging and marking appropriate for transport, unless the goods are normally transported unpackaged or specific packaging or marking requirements have been agreed. Specify special requirements in writing.

Under EXW, delivery and risk transfer normally occur when the goods are placed at your disposal at the agreed point, before loading. If the supplier will load, agree expressly who bears loss or damage during loading; free loading does not settle that question.

For the rule itself, read EXW explained. This page focuses on the price and the costs you need to add.

What do you pay on top of the factory price?

Ask the supplier and freight forwarder to mark every relevant line as included, separately charged or not applicable. These are cost categories to check, not a promise that every shipment attracts every charge. The table describes the standard EXW allocation; identify any expressly agreed additional services.

Ask whether services are bundled together. Reconcile their scope before adding individual lines so you do not count the same work twice.

Why does EXW look cheapest but sometimes cost more overall?

An EXW price leaves transport from the named delivery point for the buyer to arrange. Compare an FCA offer by pricing both options to the same destination with the same services, rather than comparing the supplier's prices alone.

Check whether any difference reflects loading, export arrangements, local transport or destination handling outside the quotation. Ask who pays waiting and storage charges before accepting the arrangements.

Assess whether the export arrangements are workable and compare complete transport quotes. Neither trade term establishes which offer has the lowest total cost.

How to turn an EXW quote into a landed cost

Start with the agreed goods total and any separately agreed packaging or product requirements. Add loading, factory collection, export clearance and origin handling where not already included. Then add international freight, insurance if purchased, destination handling, import clearance and final delivery or unloading within your chosen scope.

Next, establish the customs value under the destination's rules and calculate applicable duty and import taxes using the correct bases. Customs value is a tax calculation input; it is not another charge to add to your budget.

Record the currency, payment terms, quote validity and exclusions beside each supplier or logistics quote. Keep uncertain items visible rather than treating a blank as free.

Show expected import-tax payments or accounting arrangements separately from any potential tax recovery. Confirm eligibility and supporting evidence before treating tax as recoverable.

For related tools, see the Incoterms price converter and the customs value builder. Confirm destination-specific valuation and tax treatment with your customs agent.

When should you ask for FCA instead?

Ask for FCA at the supplier's premises if you want the seller to load your nominated collecting vehicle and handle applicable export clearance. The seller bears loading risk until delivery is completed. You normally arrange the main transport and handle applicable transit and import formalities.

FCA at another named place has a different handover: the seller brings the goods there on its vehicle and places them at the disposal of your nominated carrier or other person, ready for unloading. State the precise point so the price comparison includes the correct local transport.

For a China purchase, ask your forwarder to confirm the proposed export arrangement before paying. An EXW label does not establish that you or your chosen agent can complete the required formalities.

Request EXW and FCA offers for identical goods and packaging, then compare the remaining costs. Read FCA explained for the detailed responsibilities.

Destination taxes: a short UK example, with EU and US checks

For a shipment to Great Britain, do not assume the EXW invoice is the full customs value. HMRC requires relevant transport, loading, handling and insurance costs to the UK place of introduction to be included where not already counted. The applicable valuation rules determine any other adjustments.

For import VAT, start with customs value and add applicable duty, other import charges excluding VAT itself, and relevant incidental expenses not already included. These include expenses to the first UK destination and those resulting from transport to a further UK destination known at importation.

European Commission guidance likewise describes an import VAT base using customs value plus applicable duties, taxes and specified additional expenses, excluding import VAT itself. For US imports, CBP states that using a broker does not remove the importer of record's responsibility for correct entry documentation and applicable duties, taxes and fees.

These examples do not establish a worldwide valuation formula. Ask for the rules applicable to your destination and product; EXW does not set a tax rate.

Get the quote checked before you commit

Whether you are buying personally, placing a small business order or managing a larger procurement, send the same information to everyone quoting: product specification, quantity, collection address, packed dimensions and weight, transport preference and final delivery address.

Ask for written confirmation of loading, export clearance, origin charges, destination charges and exclusions. For a related checklist, see the China supplier quote checker.

Review the supplier's offer alongside the freight estimate. Identify missing scope, confirm who handles each stage and resolve unanswered cost questions before ordering.