EXW and FCA look almost the same on a quotation: both hand the goods over at origin and leave the main international transport to the buyer. Yet for anyone importing from China, the difference between them is exactly where most disputes, surprise costs, and customs delays come from. This guide explains what actually changes between the two, who handles the China-side export steps, and how to pick the right one. New to Incoterms? Our Incoterms 2020 guide covers all eleven rules in one place.
TL;DR — EXW vs FCA at a glance
Short answer: Under EXW, the seller does the least possible — the buyer arranges loading and export customs clearance. Under FCA, the seller loads the goods and clears export, then hands them to the carrier you nominate. For air, courier, and most container shipments, FCA is usually the cleaner choice; bare EXW is where first-time importers get stuck.
| EXW (Ex Works) | FCA (Free Carrier) | |
|---|---|---|
| Who loads the goods | Buyer (seller only makes them available) | Seller, when delivery is at the seller’s premises |
| Export customs clearance | Buyer’s responsibility | Seller’s responsibility |
| Where the seller’s responsibility ends | At the seller’s premises, goods not loaded | At the named place, once handed to the carrier |
| Transport modes | Any mode | Any mode |
| Inland freight to the warehouse / port | Depends on the named place — not on the term itself | Depends on the named place — not on the term itself |
For all eleven Incoterms 2020 rules side by side, see the full Incoterms chart.
The one rule that settles most disputes
Most EXW-vs-FCA arguments are really about one question: how far does the seller’s cost and risk go? The answer is always the same rule:
Named place = handoff point = where the seller’s responsibility ends. The seller pays up to the named place; the buyer pays everything after it. So “who pays the inland freight to the warehouse” depends on where the named place is, not on whether you call it EXW or FCA.
| Term | Named place | Who pays inland freight to the warehouse | What the seller additionally does |
|---|---|---|---|
| EXW | Factory | Buyer | Nothing — no loading, no export clearance |
| FCA | Factory | Buyer (delivery is completed at the factory) | Load onto the buyer’s vehicle + export clearance |
| FCA | Forwarder / carrier warehouse | Seller (covers the cost up to that warehouse) | Move the goods to the warehouse + export clearance |
- EXW factory vs FCA factory: the inland cost is identical (the buyer pays). The only difference is whether the seller loads the goods and clears export.
- FCA factory vs FCA forwarder warehouse: this is the real dividing line for “who pays the inland leg.”
These responsibility splits come straight from the official Incoterms 2020 rules; the U.S. government’s Know Your Incoterms page is a neutral reference if you want to verify them.
Who clears export — the step buyers underestimate
This is the part that catches first-time importers, and most generic Incoterms guides skip it.
In China, export customs declaration can only be filed by a party that holds import/export rights and customs registration. Many factories — especially smaller ones — don’t have them, so they cannot file the export declaration themselves; in practice a licensed freight forwarder or customs broker files on their behalf.
That changes how you read the two terms:
- Under EXW, the seller won’t handle export clearance at all. If you don’t have a capable agent in China, your goods can sit at origin with no one to declare them for export.
- Under FCA, export clearance is the seller’s responsibility, so this step is built into the term.
“I asked for EXW delivered to my warehouse” — the most common mistake
A very common situation: a buyer asks, under EXW, for the seller to deliver the goods to a warehouse or consolidation point — sometimes even assuming EXW already includes freight. In reality, EXW includes neither delivery nor freight. What the buyer is describing is actually FCA.
Many overseas buyers simply don’t know the term FCA, so they keep asking for “EXW to my warehouse.” When that happens, there are three clean ways to handle it:
- Keep EXW, but write the delivery place into the contract — put the “deliver to warehouse” request explicitly into the terms.
- If you won’t arrange delivery, add a line such as “ex-works price, not including delivery” to the EXW terms to avoid disputes.
- Switch to FCA and deliver to the buyer’s nominated warehouse or consolidation point — the technically correct term.
In practice (de-identified). An overseas buyer unfamiliar with FCA assumed EXW should include freight and asked the seller to deliver to a designated warehouse. Once the delivery place and freight responsibility were written into the contract, the buyer understood and the deal moved forward. The lesson: rather than argue terminology, put the delivery place and the freight responsibility in writing.
The China-side reality: why sellers increasingly resist “bare” EXW
Here’s context most buyers never see. China’s export VAT rebate is claimed by the Chinese exporter (the seller / factory) — not by the overseas buyer. Under a “bare” EXW deal, several things make that rebate harder for the seller:
- Revenue and customs values are recognised on an FOB-style basis, while the freight and origin charges are paid by the buyer — so the numbers don’t line up.
- The seller often can’t obtain the supporting documents for those buyer-paid charges, which complicates the rebate filing.
The practical result: more and more Chinese factories are reluctant to sell on bare EXW, and prefer terms (FOB for ocean, FCA for air) where the declaration and documentation line up. For you as the buyer, the takeaway is simple — a deal that looks “hands-off” for the seller can quietly create friction on the China side, so it’s worth confirming who will handle export declaration and documentation before you settle on the term.
This section is general context only — not tax advice. Rebate eligibility, declaration basis, and document requirements should always be confirmed by the exporter’s finance team and a licensed customs broker.
Where a China-side agent fits in
When a factory will only sell EXW — or you’d simply rather not manage the origin steps yourself — a freight forwarder or customs broker in China can take over the gaps the term leaves open, from the factory floor through to the international leg:
- Pickup and loading at the factory. Collect the goods from the factory and load them — the loading step EXW leaves entirely to the buyer.
- Invoice (fapiao) and declaration documents. Coordinate the factory to issue the VAT invoice (fapiao) with the correct company title and product description, and pull together the packing list and other paperwork the export declaration needs.
- Export declaration. A licensed forwarder or customs broker can file the export customs declaration on the shipment’s behalf, so the goods can clear and ship even when the factory won’t deal with customs.
- Rebate documentation. The agent provides the supporting documents the exporter needs for the VAT rebate — but the rebate itself is still filed by the exporter and their finance team, not the forwarder.
- Clearance joined up to transport. Connect the export declaration straight into the international leg, so the “factory handoff” that EXW starts with becomes one origin-to-destination flow rather than separate pieces the buyer has to stitch together.
If you’d rather the goods arrive all the way at your door, that’s a DAP or DDP arrangement rather than EXW or FCA.
Decision guide
Use this quick test to decide between the two terms:
- Shipping by air, courier, or multimodal? Prefer FCA. The seller clears export and hands the goods to your nominated carrier, which avoids the loading and clearance gaps that bare EXW leaves at origin.
- First time importing from China, with no agent on the ground? Avoid bare EXW — choose FCA (or FOB for ocean) so the seller handles loading and export declaration for you.
- Already have a capable forwarder or customs broker in China? EXW can work fine: your agent can take over loading, export clearance, and onward transport as a single coordinated flow.
- Either way, write the named place into the contract so “who pays the inland leg” is never ambiguous.
FAQ
Does EXW include delivery to my warehouse?
No — EXW covers neither loading nor freight; it only makes the goods available at the seller’s premises. For delivery to a warehouse, use FCA.
Under EXW, who clears the goods for export in China?
The buyer. In practice you’ll need a licensed forwarder or customs broker to file the declaration on your behalf. Under FCA, the seller handles export clearance instead.
With FCA, who pays the inland freight to the port or warehouse?
It depends on the named place, not on the term. If the named place is the factory, the buyer pays the inland leg; if it’s the forwarder’s warehouse, the seller pays up to that warehouse.
EXW or FCA for air freight?
FCA, almost always. It puts export clearance and handover on the seller; bare EXW leaves first-time air shippers to arrange both steps themselves.
