Under EXW, which party bears nearly all costs and risks from pickup?

• A. Seller bears nearly all costs and risks from pickup.
• B. Buyer bears nearly all costs and risks from pickup.
• C. Carrier bears all risks.
• D. Export authority bears risks.

Answer: (B)

In EXW, the seller’s obligation ends when the goods are made available at the seller’s premises. From that moment on, the buyer takes on almost all costs and risks: loading the goods onto a vehicle, arranging and paying for transport, handling export and import formalities, insurance, duties and taxes, and any loss or damage that occurs during the journey. That’s why the buyer bears nearly everything from pickup forward. If you wanted the seller to handle more of these steps, you’d choose a different term that places more responsibilities on the seller, such as FCA or FOB.