The acronym comes from the English expression Ex Works, in factory or agreed place. It is mostly used in domestic trade and works as follows: the seller places the goods to be sold in a place known to both parties (buyer and seller), which is usually the factory or warehouse of the party offering the goods, and the buyer accepts other costs such as transportation and risks. The buyer usually takes out insurance or bears the risk of loss or damage. Therefore, the EXW type of incoterm represents the minimum obligations for the seller.

The Incoterms 2020 version provides the option, in the case of sea transport, for the buyer to instruct the carrier (shipping line or its agent) he has contracted to issue a Bill of Lading (B/L) in the seller's name with the notation "on board", which indicates that the goods have been loaded on board the vessel. This is the most common transport document used in documentary credits to justify the delivery of the goods and, thus, to pay the credit to the seller.

It is the carriage paid to the named place of destination. The seller controls the logistic chain and fulfills the delivery when he gives the goods to the carrier or any other person designated by the seller. He is responsible for export duties. The seller's obligation is to deliver the goods to the carrier at the place of loading. That is, the buyer has risk of loss or damage to the goods.

For the CIP Incoterm, the seller is obliged to take out transport insurance in favor of the buyer with comprehensive coverage, which corresponds to Clause A of the Institute Cargo Clauses of London (IUA/LMA). However, the parties may agree to take out insurance with lesser coverage (Clause C of the Institute Cargo Clauses).

In Incoterms 2020 a new Incoterm DPU (Delivered at Place Unloaded) is created to replace DAT (Delivered at Terminal). This change of acronym is a simple renaming since the obligations and functions of both terms are exactly the same. DPU is the only Incoterm in which the goods are delivered unloaded at the place of destination. The change of name is justified because the goods can not only be unloaded at a terminal or transport infrastructure (port, airport, dock, etc.) but also at any other point in the country of destination that has equipment to unload the goods from the means of transport, such as a factory or a warehouse.

This Incoterm is characterized by the seller's obligation to deliver the goods to the buyer at their place of destination but without unloading them. The cost of delivery and export licenses are borne by the seller.

This is an Incoterm totally opposite to the first in the list, the EXW, and is totally demanding for the seller, who must take care of the goods that reach the buyer for export and import at the appropriate destination. On the one hand, the seller pays for freight, risk insurance and other types of charges such as customs clearance. On the other hand, the buyer pays the unloading costs and has the obligation to notify the seller of all necessary information about the goods received that has to do with the safety of export or import.