EXW vs FCA: which Incoterm should you use?
EXW (Ex Works) versus FCA (Free Carrier) — who pays freight, where risk transfers, and what each choice does to your landed cost. Last reviewed 16 July 2026.
EXW hands over unloaded at the seller's premises with the buyer doing export clearance; FCA has the seller clear export and hand goods to the carrier.
EXW vs FCA at a glance
| Factor | EXW — Ex Works | FCA — Free Carrier |
|---|---|---|
| Group | E — Departure | F — Main carriage unpaid |
| Transport mode | Any mode | Any mode |
| Who pays main freight | Buyer | Buyer |
| Insurance obligation | No obligation on either party | No obligation on either party |
| Risk transfers | At the seller's premises, once goods are placed at the buyer's disposal (not loaded) | When goods are handed to the carrier named by the buyer at the agreed place |
| Export clearance | Buyer | Seller |
| Import clearance | Buyer | Buyer |
| Best for | Buyers with their own forwarder who want maximum control from the factory gate | Containerised or multimodal cargo where the seller handles export clearance |
Based on the Incoterms 2020 rules (ICC). Always confirm the exact obligations in your sales contract — as of 16 July 2026.
When to choose EXW
Choose EXW only when you can manage the entire journey from the seller's door, including export clearance in the seller's country. It offers the lowest headline price and maximum control, but a foreign buyer usually cannot file the export declaration, which makes EXW awkward in practice.
When to choose FCA
Choose FCA in almost every case where you were considering EXW. FCA gives you nearly the same control but shifts export clearance to the seller, who is established locally and can do it properly. It also works for any transport mode and can transfer risk at the seller's premises (loaded) or at a carrier's terminal — the ICC's recommended first-mile term.
What it does to your landed cost
The two are close in headline cost, but EXW's price excludes loading and export formalities that reappear on your invoice, sometimes higher than the seller would pay. FCA folds a proper export-cleared handover into the price. Neither changes the customs value directly — freight and insurance are added back for duty and import VAT regardless. Because FCA removes the export-clearance trap for little or no extra cost, it is usually the better first-mile term. Compare full origin-to-door cost in the calculator.
Enter your goods value, freight and quantities to see duty, import VAT and per-unit landed cost under each Incoterm — in seconds, free.
Open the import calculatorEXW vs FCA — FAQ
Term definitions
Related comparisons
See what EXW vs FCA means for your landed cost
Stop guessing which Incoterm is cheaper. Enter your numbers and compare duty, VAT and per-unit cost in seconds — free, no card required.