Ex works (EXW) is an international trade term that describes when a seller makes a product available at a designated location, and the buyer of the product must cover the transport costs.

In shipping arrangements, the difference between free on board and ex works is based on transferring the liability of goods between the buyer and seller. In free-on-board contracts, the seller takes responsibility for bringing goods to a terminal in addition to customs costs and loading the goods onto the ship. The buyer, meanwhile, is liable for shipping costs, insurance, and customs costs at the final point of arrival.

With an ex works agreement, the seller saves costs on shipping and customs, along with liability for damaged goods after being delivered, packaged, and labeled at the shipping terminal. While this may be optimal at times for sellers, it is not always possible due to customs requirements in certain jurisdictions.

Carriage Paid To (CPT) is an international trade term that means the seller delivers the goods at their expense to a carrier or another person nominated by the seller. The seller assumes all risks, including loss, until the goods are in the care of the nominated party.