CargoWise ERP Glossary - Key Terms & FAQs

Our CargoWise ERP Glossary Terms provide clear, concise definitions of key terms used in CargoWise, helping users navigate the system with confidence. Along with these definitions, we've included in-depth FAQs to clarify complex concepts, ensuring you get the most out of your CargoWise solutions.

X-Works (EXW) Shipping Terms

Last updated: August 20, 2025
Logistics CargoWise
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X-Works (EXW) is an Incoterm (International Commercial Terms) developed by the International Chamber of Commerce (ICC) that refers to one of the most basic transportation arrangements. Under EXW rules, the seller is simply responsible for making the products available at their location, such as a warehouse or factory. All other responsibilities, including transportation, export duties, insurance, and customs clearance, fall to the buyer. This term gives the buyer complete authority but also places the most responsibility and risk on them during the process of shipping.

EXW terms can be defined in CargoWise’s cargo and contract modules to guarantee that responsibilities and costs are accurately allocated. By properly defining shipping terminology in the system, logistics providers and freight forwarders may avoid confusion and disputes. CargoWise automatically incorporates this terminology into freight documents, commercial invoicing, and transportation bookings, ensuring consistency and legal clarity. For firms engaged in global commerce, precisely defining and managing Incoterms such as EXW is critical to reducing compliance risk and successfully managing cost responsibilities.

Frequently Asked Questions

What does the term EXW mean in international shipping?

EXW (Ex Works) signifies that the vendor supplies goods on their premises and the buyer manages all logistics from that point forward, including export tariffs and transportation.

Who bears responsibility for risk under EXW terms?

Once the goods are made available by the seller, the buyer accepts all risks and costs. This includes transportation, customs, and potential damage while en route.

How does CargoWise handle EXW shipping orders?

CargoWise enables users to establish Incoterms such as EXW at the shipment level, ensuring accurate cost allocation and documentation across the supply chain.

When is EXW a good choice?

EXW is appropriate when the buyer has strong logistics capabilities in the seller's nation or has complete control over the shipping process and associated expenses.

What are the risks to the buyer in EXW terms?

Buyers assume increased risk, including managing export clearance, potential customs complications, and other logistics requirements, which are especially difficult in new countries.