ExWorks

Cost

Risk

The seller has delivered when they place or deliver suitably packaged goods at the disposal of the buyer at an agreed-upon place (i.e. the works, factory, warehouse, etc.). The goods are not cleared for export.
The seller is not required to load the goods onto a collecting vehicle, and it is at the buyer’s expense. EXW is the only Incoterm where the goods are not required to be cleared for export, although the seller has the duty to assist the buyer (at the buyer’s expense) with any needed documentation and export approvals.
From collection, the buyer is responsible for all risks, costs and clearances.

Seller

Buyer

The seller delivers the goods, suitably packaged and cleared for export, once they are safely loaded on the ship at the agreed upon shipping port. At this point, responsibility for the goods transfers to the buyer. The seller may procure a freight contract at the buyer’s request or, if the buyer has failed to procure one by the date of a scheduled delivery, the seller may procure one on their own initiative. The buyer is responsible for the cost and risk of this freight contract.

Risk

Cost

Free On Board

Seller

Buyer

Cost & Freight

Cost

Risk

The seller delivers when the suitably packaged goods, cleared for export, are safely loaded on the ship at the agreed upon shipping port.
The seller is responsible for pre-paying the freight contract. Once the goods are safely stowed on board, responsibility for them transfers to the buyer, despite the seller paying for the freight contract to the selected destination port. Insurance is not included. 

Cost

Risk

The seller delivers when the suitably packaged goods, cleared for export, are safely stowed on board the ship at the selected port of shipment. The seller must prepay the freight contract and insurance.
Despite the seller paying for the freight contract to the selected destination port, once the goods are safely stowed on board, responsibility for them transfers to the buyer. The seller is only obliged to procure the minimum level of insurance coverage. In this event, the buyer and seller are at liberty to negotiate a higher level of coverage.

Cost, Insurance & Freight

Delivered At Place

Cost

Risk

The seller delivers the goods when they arrive at the pre-agreed destination, ready for unloading.
It is the buyer’s responsibility to effect any customs clearance and pay any import duties or taxes. The delivery is not complete until the goods are unloaded at the agreed destination. Therefore, the seller should be wary of the risks of not securing insurance.