EXW vs CPT – who pays for what?
EXW is Ex Works and CPT is Carriage Paid To. We compare who pays for transport, customs clearance and duty, and where risk passes to the buyer.
Key differences
Under CPT, the seller also covers export clearance, transport to the port or terminal, loading for main carriage and the main freight. Under EXW, the buyer pays for this instead. The two rules also differ in the point at which risk passes to the buyer.
- Export clearance
- EXWBuyerCPTSeller
- Transport to the port or terminal
- EXWBuyerCPTSeller
- Loading for main carriage
- EXWBuyerCPTSeller
- Main carriage (freight)
- EXWBuyerCPTSeller
- Risk passes
- EXWAt the seller’s premises, before loadingCPTOn handover to the carrier in the country of dispatch
Full cost breakdown
| Cost | EXW | CPT |
|---|---|---|
| Export clearance | Buyer | Seller |
| Transport to the port or terminal | Buyer | Seller |
| Loading for main carriage | Buyer | Seller |
| Main carriage (freight) | Buyer | Seller |
| Insurance | No obligation | No obligation |
| Unloading at destination | Buyer | Buyer |
| Import clearance | Buyer | Buyer |
| Import duty and VAT | Buyer | Buyer |
| Risk passes | At the seller’s premises (or another agreed place), when the goods are ready for collection – before loading. | When the seller hands the goods over to the first carrier – even though the seller pays for transport to the place of destination. |
| Mode of transport | Any mode of transport (sea, rail, air, road) | Any mode of transport (sea, rail, air, road) |
Notes
- EXW – export clearance: formally the buyer’s responsibility. In practice, the export declaration in China is filed by the supplier or a Chinese customs broker, because a foreign buyer is not registered with customs there.
- Unloading at destination: if unloading costs are included in the contract of carriage concluded by the seller, the seller pays them and cannot charge them to the buyer afterwards.
What to watch for when importing from China
EXW Ex Works
Once the goods are ready for collection, everything else is your responsibility – including loading and export clearance. In China, the export declaration is filed by a company registered with Chinese customs – usually the supplier or a Chinese customs broker – so you will need their help anyway. Agree in writing who loads the goods and who handles export clearance. If the goods are damaged during loading, the loss is yours.
More about EXW →CPT Carriage Paid To
The supplier pays for transport to the place of destination, but the risk passes to you when the goods are handed over to the first carrier in China. If the goods are lost or damaged in transit, it is you who has to pursue the claim – so it is worth insuring them.
When to use EXW and when to use CPT?
- EXW – when you want to control transport right from the factory, and your freight forwarder arranges collection of the goods and export clearance in China.
- CPT – for any mode of transport (including rail and air), when the supplier arranges carriage to Poland, while you insure the goods and handle customs clearance.
Buying on EXW terms? You choose the forwarder
We organise transport from China – by rail, sea or air – together with customs clearance in Poland and cargo insurance. Send us your cargo details and we will prepare a quote tailored to your shipment.
Request a quoteFAQ
What is the main difference between EXW and CPT?
Under CPT, the seller also covers export clearance, transport to the port or terminal, loading for main carriage and the main freight. Under EXW, the buyer pays for this instead. The two rules also differ in the point at which risk passes to the buyer.
Where does risk pass to the buyer under EXW?
At the seller’s premises (or another agreed place), when the goods are ready for collection – before loading.
Where does risk pass to the buyer under CPT?
When the seller hands the goods over to the first carrier – even though the seller pays for transport to the place of destination.
Can EXW and CPT be used for rail freight from China?
Yes. EXW and CPT can be used with any mode of transport: sea (including containers), rail, air and road.
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Incoterms® is a registered trademark of the International Chamber of Commerce (ICC). This page is an independent, simplified summary of how costs and risks are divided – it is not affiliated with or approved by the ICC. When drafting contracts, use the official text of the Incoterms® 2020 rules published by the ICC.