EXW (Ex Works)
/glossary/exwIncoterm where buyer collects goods from seller premises, bearing all transport costs.
EXW (Ex Works) is an Incoterms 2020 rule: the seller places the goods at the buyer's disposal at the named place, not loaded on the collecting vehicle. For RP Sales that place is the Bartan Bazar / Basanti Nagar (208014) yard when the quote names EXW Kanpur. The buyer arranges loading, carriage, and insurance. Incoterms 2020 has eleven rules. Put 18% GST extra on the EXW steel budget.
In detail
EXW (Ex Works) is an Incoterms 2020 rule under which the seller delivers by placing the goods at the buyer's disposal at the named place, not loaded on the collecting vehicle. The buyer contracts carriage from that place and bears risk from delivery under A2. RP Sales names EXW at the Bartan Bazar / Basanti Nagar (208014) yard when that is the collection point. EXW is one of eleven Incoterms 2020 rules. It is not FOR, and the rule itself does not set the lowest rupee price.
What EXW is, and what it is not
Incoterms 2020, ICC explanatory note 1 for EXW, states that the seller delivers when it places the goods at the disposal of the buyer at a named place (factory or warehouse), and that place may or may not be the seller's premises. Delivery occurs without loading the collecting vehicle and without export clearance where clearance applies. Note 2 allows any mode of transport.
Note 3 tells the parties to name the precise point inside that place. If they do not, the seller may select the point that best suits its purpose, and risk transfers there. Note 4 calls EXW the rule with the least seller obligations and tells buyers to use it with care.
EXW is not FCA. Under FCA at the seller's premises the seller must load, and loading risk stays with the seller. EXW is not DAP. DAP takes the seller to a named destination, ready for unloading. EXW is not FOR. FOR is a domestic commercial phrase, not one of the eleven Incoterms 2020 rules.
EXW does not guarantee the lowest price, a stocked lot, or a dispatch clock. Those sit on the offer. The rule allocates delivery, risk, carriage, and export clearance. It does not replace the pipe specification on the RFQ.
Who should collect EXW, and who should not
Collect EXW when the buyer already runs trucks, when a Panki or Dada Nagar shop wants yard inspection before loading, or when two suppliers must be compared on the same Kanpur-origin material rate. Hydraulic shops and printing-cylinder units that pick up small lots often use this basis. Intra-city runs to Panki (about 12 km), Dada Nagar (about 8 km), and Jajmau (about 10 km) start at the named yard.
Do not choose EXW when the buyer cannot load, cannot enter the yard under its safety rules, or cannot clear export. ICC note 5 says loading risk can still sit with the buyer even if the seller's crane does the lift, unless the parties agree otherwise. ICC note 6 says a buyer who will export and who expects trouble obtaining export clearance should prefer FCA, where export clearance is the seller's duty.
PWD and JJM bidders whose BOQ is a delivered rate should not bid EXW and then add a guessed freight. Read the BOQ. If the contract is delivered per metre or per kg, obtain a current carrier quote for each site PIN and load the freight into the bid. Sugar mills that want a shutdown drop on a named date usually need seller-arranged carriage to the mill gate, not a yard collection they cannot staff.
A 1 MT Coolie Bazar pickup can still be EXW. The FAQ notes that selected stocked sizes accept enquiries from 1 MT. The buyer's transporter still takes risk from the named point.
EXW versus FCA, DAP, and FOR
Normalise the handover before ranking rupee figures. The table restates the freight-guide comparison for a Kanpur origin.
| Term | Named place | Who loads at origin | Who contracts carriage | Risk transfer | Export clearance |
|---|---|---|---|---|---|
| EXW | Named point (yard, factory) | Buyer; seller not obliged | Buyer | When goods are placed, not loaded | Buyer, where applicable |
| FCA (seller premises) | Seller's named premises | Seller | Buyer | After seller loads | Seller |
| DAP | Named destination | Seller arranges to destination | Seller | At destination, ready to unload | Seller export; buyer import |
| FOR Kanpur (domestic phrase) | Must be defined in the quote | Define in the quote | Define in the quote | Define in the quote | Domestic: not an Incoterm |
The eleven Incoterms 2020 rules are EXW, FCA, CPT, CIP, DAP, DPU, DDP (any mode) and FAS, FOB, CFR, CIF (sea and inland waterway). FOB Kanpur Goods Yard is the wrong label for a road pickup. Use an any-mode rule or a plain domestic clause.
How to specify EXW on an RFQ
Write the pipe lines first, then the handover. An EXW quote that says only "EXW Kanpur" leaves the precise point and the loading risk open.
- Rule: Incoterms 2020 EXW, named place 83/124, Steel Market, Bartan Bazar, Afim Kothi, Basanti Nagar, Juhi, Kanpur 208014, plus the bay or godown if known.
- Collection window, vehicle type, longest piece, and whether the buyer's crew or the yard crane will load.
- Loading-risk sentence: if the yard crane lifts, who bears loss during the lift (ICC note 5). If the buyer wants seller loading risk, switch the quote to FCA at the premises.
- Documents the seller must hand over at the point: commercial invoice, packing list, MTC (every RP Sales dispatch includes one), e-way bill if the seller is the registered person causing movement, weighbridge slip.
- GST line: budget 18% extra on the EXW steel value; HSN on the invoice. Security, gate pass, and the person who signs the challan.
- Pipe identity remains on the RFQ: process, grade, OD or NB, wall or class, length, quantity, ends, coating, IBR form if the component needs one.
Worked EXW example for 50 NB Medium
Take 100 lengths of 6 m IS 1239 Medium, 50 NB. Plain-end steel mass is W = (OD − t) × t × 0.02466 kg/m. The class chart uses OD 60.3 mm and Medium wall 3.6 mm, so W = (60.3 − 3.6) × 3.6 × 0.02466 = 56.7 × 3.6 × 0.02466 = 5.03 kg/m. The weight table lists 30.2 kg per 6 m. One hundred lengths are 100 × 30.2 = 3,020 kg (3.02 MT).
The MS ERW price list band for 50 NB Medium is ₹53-60 per kg ex-warehouse Kanpur as of 24 May 2026. The EXW steel line is 3,020 × 53 = ₹1,60,060 to 3,020 × 60 = ₹1,81,200 before GST. Add 18% GST extra when budgeting this 50 NB EXW value. Loading, freight, insurance, and unloading sit outside this EXW figure.
A Panki fabricator who sends a truck the same week should pay 100% advance against proforma if the account is new, collect at the named bay, and sign the challan. A Delhi NCR site that wants the same 3.02 MT delivered must add a dated carrier quote; do not scale a hypothetical per-MT freight from the freight-guide worksheet.
Common EXW mistakes at a Kanpur yard
In practice, the first failure is treating EXW as "seller loads my truck." ICC A2 says the seller places the goods, not loaded. If the commercial intent is seller loading, quote FCA at the premises or write a domestic loading clause.
The second failure is "EXW Kanpur" with no street address. Bartan Bazar, a Panki godown, and an upstream mill are different points. Risk transfers at the point the seller selects if the contract is silent (ICC note 3).
The third failure is ranking an EXW offer against a delivered offer without stripping freight. The cheaper EXW number is not a saving until loading, carriage, insurance, and unloading are added on the same mass.
The fourth failure is using EXW on an export lot when the overseas buyer cannot obtain Indian export clearance. ICC note 6 points those buyers to FCA.
The fifth failure is leaving the pipe unspecified because "it is only a collection term." Wrong class, missing MTC, or the wrong IBR form still fail at the gate. EXW does not inspect the wall.
Incoterms 2020 clauses that govern EXW
A1: the seller provides the goods and the commercial invoice in conformity with the contract. A2: delivery is placing the goods at the agreed point, not loaded; if several points exist and none is named, the seller picks. A3 / B3: seller bears risk until A2 delivery; buyer bears risk from that moment. A4: the seller has no obligation to contract carriage. A5: the seller has no obligation to insure. A6: the seller has no obligation to provide a transport document. B4: the buyer contracts carriage from the named place at its own cost. B2: the buyer takes delivery when A2 is met and notice is given.
ICC note 5 on loading is the yard-practical clause. The seller often has the only legal crane. Safety rules may keep the buyer's crew off the bay. If the seller then loads, the parties should agree who bears loss during that lift. FCA at the seller's premises is the Incoterms answer when the buyer refuses that residual risk.
FOB, CFR, and CIF are sea and inland-waterway rules. They do not describe a road collection at Bartan Bazar. CPT and CIP can describe seller-arranged carriage to a named place with different risk points; they are not synonyms for EXW plus freight.
Collecting pipe EXW at the Kanpur yard
The named place for RP Sales EXW quotes is 83/124, Steel Market, Bartan Bazar, Afim Kothi, Basanti Nagar, Juhi, Kanpur 208014. See Kanpur steel market and steel pipes in Kanpur. Local buyers may inspect the lot at that yard before the vehicle reports.
The homepage and buying-guide restate the site FAQ: RP Sales dispatches daily from Kanpur across Uttar Pradesh, Bihar, Madhya Pradesh, Delhi NCR, and Uttarakhand. EXW collection is the other half of that sentence: the buyer can take the same lot on its own vehicle. State which basis applies before comparing two offers.
Stock items on the glossary lead-time entry leave in 3-7 days. Mill-direct standard grades take 14-21 days. Mill-direct alloy (SA213 T11/T22) takes 21-30 days. EXW does not shorten mill time. It only names the handover once the lot is ready.
GI, seamless, and borewell buyers use the same yard and the same rule. GI pipes in Kanpur, seamless steel pipes in Kanpur, and drill and borewell pipes in Kanpur keep their product lines; the EXW sentence stays the named place plus loading risk.
Loading, documents, and gate practice
The seller must provide the commercial invoice (A1). Every RP Sales dispatch includes an MTC. The packing list / dispatch challan identifies sizes, counts, and heat numbers. The buyer's driver signs for the number of bundles and the visible condition. A rejection note is the next paper if the count or the coating is wrong.
If the registered person causing movement is the buyer (self-collection of a taxable supply already invoiced, or a movement the buyer reports), that party generates the e-way bill under CGST Rule 138 when consignment value exceeds ₹50,000, subject to the rule's exemptions. If RP Sales causes the movement, RP Sales generates it. Put the responsible GSTIN on the RFQ.
Longest piece, bundle mass, and crane reach belong on the collection note. The FAQ uses 9 MT to 30 MT only as a truck-planning reference. The carrier quote sets the actual vehicle.
GST and e-way bill on an EXW collection
The tax invoice applies GST. Budget 18% extra on the EXW steel value. HSN follows the goods: welded pipe under heading 7306, seamless under 7304, large welded under 7305, as already used on the LC page. The challan does not levy tax.
CGST Rule 138 generally requires an e-way bill for a registered person moving taxable goods when consignment value exceeds ₹50,000. Explanation 2 to the rule values the consignment from the invoice, bill of supply, or delivery challan, including tax, excluding exempt goods on a mixed invoice. Intra-state thresholds can follow state notifications. A 3.02 MT lot at the 50 NB Medium band is well above that general threshold.
Rule 138 also lists a 20 km weighbridge movement accompanied by a Rule 55 delivery challan. That is a short yard-to-weighbridge hop, not an EXW sale to Lucknow.
PWD, JJM, and mill buyers on EXW
A Jal Jeevan Mission contractor who is paid on a delivered BOQ should collect carrier quotes to each village PIN rather than taking EXW and hoping the freight fits. Freight calculation from Kanpur is a worksheet, not a rate card. Lucknow is 80 km via NH-27. Unnao is 18 km. Prayagraj is 200 km on NH-19. Those distances are first-party city-page figures; they are not transit-hour promises.
Fire-system installers who pick up Heavy GI can still use EXW if their own truck has bolsters and end protection. The zinc coating needs the same handling as a delivered load. GI pipe price list bands stay ex-warehouse Kanpur as of 24 May 2026.
Export buyers who need the seller to clear Indian Customs should not force EXW. Switch that line to FCA at the named Kanpur premises or to a later any-mode rule that matches the booked carriage.
Where you'll meet this in procurement
You will meet EXW (Ex Works) when setting commercial and logistics terms. Spell out EXW (Ex Works) on the RFQ or PO so price, quantity, delivery point, and lead time are comparable across suppliers and disputes at dispatch are avoided.
Related terms
Related resources
Key points
- EXW delivery is placing the goods at the named place, not loaded (Incoterms 2020 A2).
- Name the precise point. For RP Sales that is 83/124, Steel Market, Bartan Bazar, Kanpur 208014 when the quote says EXW Kanpur.
- If the yard crane must load and the buyer refuses residual lift risk, quote FCA at the premises (ICC note 5).
- FOR is a domestic phrase, not one of the eleven Incoterms 2020 rules. FOB is a sea rule and does not describe a Bartan Bazar road pickup.
- EXW steel for 50 NB Medium is the ₹53-60 per kg band as of 24 May 2026. Loading, freight, and GST sit outside that band. Add 18% GST extra when budgeting the EXW steel value.
Frequently asked questions
Sources
- Incoterms 2020, EXW. Ex Works (insert named place of delivery): explanatory notes 1-6 and articles A1-A6, B2-B5 (delivery not loaded; least seller obligations; loading-risk caution; export-clearance caution) (International Chamber of Commerce)
- Incoterms 2020. Rules for any mode versus sea and inland-waterway transport, including EXW, FCA, DAP, and FOB (International Chamber of Commerce)
- CGST Rule 138. Information to be furnished prior to commencement of movement of goods and generation of e-way bill; consignment value and ₹50,000 threshold (GST Council, Government of India)
- Indian Boiler Regulations, 1950. Forms index: III-A steam pipes, III-B tubes, III-C boiler mountings and fittings (Central Boilers Board, Government of India)