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TradeTools Box

EXW vs FCA

Key Difference

Under EXW, the seller's only duty is to make the goods available at their own address (even export clearance can fall to the buyer). Under FCA, the seller export-clears the goods and hands them to the carrier.

When to use EXW?

EXW mostly makes sense for domestic sales, or special cases where the buyer fully controls the export process.

When to use FCA?

For international trade, most practitioners recommend FCA over EXW because it clearly assigns export clearance responsibility to the seller.

Full Comparison

EXW – Ex Works

Any Transport Mode
Seller's Responsibility
Makes the goods available at their own premises/named place; loading, transport, and export formalities are not the seller's obligation.
Buyer's Responsibility
Handles all transport (including loading), export and import customs formalities, insurance, and costs.
Risk Transfer Point
The moment the goods are placed at the buyer's disposal at the seller's premises (before loading).
PackagingSeller
Export ClearanceBuyer
Origin Inland TransportBuyer
Main Carriage (Freight)Buyer
Insurance
Import ClearanceBuyer
Destination Inland TransportBuyer
Duties & TaxesBuyer

FCA – Free Carrier

Any Transport Mode
Seller's Responsibility
Export-clears the goods and delivers them to the carrier nominated by the buyer at the named place.
Buyer's Responsibility
Arranges the carrier; responsible for all transport, import clearance, and costs after delivery.
Risk Transfer Point
When the goods are delivered to the buyer's nominated carrier at the named place.
PackagingSeller
Export ClearanceSeller
Origin Inland TransportSeller
Main Carriage (Freight)Buyer
Insurance
Import ClearanceBuyer
Destination Inland TransportBuyer
Duties & TaxesBuyer

Frequently Asked Questions

Under EXW, the seller's only duty is to make the goods available at their own address (even export clearance can fall to the buyer). Under FCA, the seller export-clears the goods and hands them to the carrier.