Containers and shipping
EXW meaning: Ex Works
Independent site, not a government service. General information, not customs advice.
EXW is the factory door price, and the seller need not even load the truck. See what it adds for customs value in India.
Does your invoice price cover freight and insurance?
Starting customs value
₹5,65,000
| Freight added | ₹60,000 |
| Insurance added | ₹5,000 |
| What to look at: Add origin haulage, export handling, sea or air freight and insurance. | |
Our summary of how each rule splits costs, for customs value only. Check your contract.
EXW stands for Ex Works, a rule of the Incoterms® Rules for any mode of transport. HMRC, in its UK guidance, describes it this way: the seller places the goods at the buyer's disposal at the seller's premises or another named place, such as a works, factory or warehouse. The seller does not need to load them on the collecting vehicle, nor clear them for export where such clearance applies. That leaves the journey from the door with the buyer, and an EXW price shows less of the cost than a price on a later rule does. For an importer in India, there are two points to check. First, find out who will complete export formalities in the seller's country, since the rule does not ask the seller to do so. Second, customs value under rule 10 runs up to the place of importation, so your haulage, origin charges, freight and insurance all go on top of the invoice price. Those are the costs the small tool on this page reminds you of.
Tariff and rules read by Radif Partners · Editorial policy · Method and sources
Where delivery happens, across three rules
| Rule | Seller delivers | What the guidance adds |
|---|---|---|
| EXW | At its premises or a named place | Need not load, need not clear for export |
| FCA | To the carrier or person the buyer nominates, at its premises or a named place | Be explicit about the point within the place, as risk passes there |
| FOB | On board the ship the buyer nominates, at the named port | Risk passes on board; buyer bears all costs from then on |
A price comparison the right way
Ask for quotes on the same basis. Take two made-up offers: ₹4,80,000 EXW and ₹5,10,000 FOB. If haulage and origin charges come to ₹30,000, they match at the port, and the EXW price was not cheaper. Convert everything to a landed figure before you compare: the landed cost calculator helps. Duty is then charged on the customs value in both cases, so a low price at the factory door does not lower your duty if the rest of the journey costs more.
Why the fallback percentages do not fit
Under rule 10(2), transport that cannot be ascertained is taken as 20% of FOB value. That percentage starts from an FOB value, and an EXW price stops short of the ship. Using it directly on the factory price would count your origin haulage as if it did not exist. So gather the origin bills as well, and keep them with the freight invoice.
The tool above starts on EXW, adding freight and insurance, and it reminds you of origin costs. The rule itself comes from the HMRC guidance, in our wording.