What costs are encompassed within an Ex-Works (EXW) price?

The Ex-Works (EXW) pricing term refers to an arrangement in which the seller makes the goods available for pickup at their premises or another named place, but does not take responsibility for loading the goods onto the vehicle supplied by the buyer, nor for any further transportation costs or risks after that point.

Choosing to describe the costs encompassed within an EXW price as limited to those incurred up to an agreed point of origin accurately reflects this arrangement. The seller's obligations end once the goods are made available for pickup, meaning that any costs associated with delivery, shipping, or insurance beyond that location are the responsibility of the buyer. This makes it essential for the buyer to be aware of these additional costs when agreeing to an EXW arrangement.

In contrast, the implications of other options highlight aspects of logistics that do not align with the EXW definition. Delivery costs to the buyer would not be included because the seller is not liable for transportation once the goods are ready for pickup. Likewise, shipping and insurance costs pertain to responsibilities that fall upon the buyer after the goods leave the seller's premises. Lastly, all transportation costs involved would also not be applicable since the seller’s responsibility is specifically limited to costs incurred at their location.

By clar