Who pays for insurance under EXW?

Under EXW the seller has no obligation to insure the goods for the buyer.

Who is responsible for export clearance under EXW?

The buyer. The buyer must handle export formalities in the seller's country, which can be difficult if it has no presence there. The seller makes available the documents it holds.

EXW (Ex Works) Incoterms® 2020 rule

The seller makes the goods available at its premises; the buyer loads them and handles all else, export clearance included.

In our own words, checked against public explanatory sources. The official rule text is published by ICC.

Transport mode: Any mode of transport
Risk passes: At the seller's premises
Seller must insure?: No

Who pays, at a glance

Seller pays or arranges:: packaging.
Buyer pays or arranges:: loading at origin, export clearance, pre-carriage, main carriage, insurance, unloading at destination, import clearance, import duties, on-carriage.

Where risk passes

Risk passes when the seller has made the goods available to the buyer at the agreed place and time, before they are loaded onto the buyer's vehicle.

Cost and risk diagram

Rows follow the goods from the seller (top) to the buyer (bottom); the dashed line marks where risk passes. Generated from the table below. Positions are schematic — the named place in your contract decides the exact point.

Who pays for what

Cost item	Paid / arranged by	Notes
Packaging	Seller	The seller packs the goods for transport; the buyer pays for export paperwork and any pre-shipment inspection.
Loading at origin	Buyer	If the seller's staff load the buyer's vehicle in practice, sources point out that FCA describes that arrangement better.
Export clearance	Buyer	The buyer must handle export formalities in the seller's country, which can be difficult if it has no presence there. The seller makes available the documents it holds.
Pre-carriage	Buyer
Main carriage	Buyer
Insurance	Buyer	No party has to insure under this rule. The buyer carries the risk for the whole journey, so any cover is its own choice and cost.
Unloading at destination	Buyer
Import clearance	Buyer
Import duties	Buyer
On-carriage	Buyer

Insurance

This rule puts no obligation on the seller to insure the goods for the buyer. Either side may still choose to buy cover for its own risk.

Common mistakes

Using EXW for a cross-border sale when the buyer cannot handle export formalities in the seller's country; sources suggest FCA instead.
Choosing EXW although the seller actually loads the buyer's vehicle; when the seller loads, FCA fits the arrangement.
Not agreeing a precise pickup place, date and time, which invites disputes about when the goods were made available.
Overlooking that the seller may struggle to prove the goods left the country, which it can need to zero-rate the sale for VAT.

In your ERP and on invoices

Practical consequences of the cost split above for order data, cost bookings and invoice layout. Generic — not specific to any ERP product.

Store the rule code, the edition (for example 2020) and the named place as separate fields on orders, and print all three on the invoice.
Main-carriage freight is a buyer cost: the buyer's landed-cost or freight accrual should include it; the seller's sales price should not.
Cargo insurance is the buyer's cost: the buyer's landed-cost calculation should include any cover it buys.
Import duties are a buyer cost: the buyer's landed-cost calculation should add duties and clearance fees on top of the purchase price.
Export clearance is handled by the buyer: record who acts as exporter, because the seller's system may not produce the export documents.

When to look at another rule

Derived from the cost tables: rules for the same kind of route that differ from EXW in one of export clearance, main carriage, import clearance or insurance.

If the seller should clear export: FCA.

Compare EXW with

Questions about EXW

Where does risk pass from seller to buyer under EXW?: Risk passes when the seller has made the goods available to the buyer at the agreed place and time, before they are loaded onto the buyer's vehicle.
Which transport modes can EXW be used for?: Any mode of transport.
Who pays for insurance under EXW?: Under EXW the seller has no obligation to insure the goods for the buyer.
Who is responsible for export clearance under EXW?: The buyer. The buyer must handle export formalities in the seller's country, which can be difficult if it has no presence there. The seller makes available the documents it holds.
Who is responsible for main carriage under EXW?: The buyer.
Who is responsible for import clearance under EXW?: The buyer.
Who is responsible for import duties under EXW?: The buyer.
Who is responsible for unloading at destination under EXW?: The buyer.

Sources

Checked on 11 October 2026.

Export Development Canada — edc.ca
Netherlands Chamber of Commerce (KVK) — kvk.nl
ICC Academy (International Chamber of Commerce) — academy.iccwbo.org
US International Trade Administration — trade.gov
UK Department for Business and Trade (business.gov.uk) — business.gov.uk
Maersk (chart by Pilot Freight Services) — delivers.maersk.comsecondary