EXW (Ex Works) means "Ex Works", where the seller prepares energy storage products that meet the contract requirements at their location (factory, warehouse, etc.) and fulfills the delivery obligation. From this point on, the buyer assumes all subsequent responsibilities, including:

• Arranging the entire transportation from the seller's location to the final destination (land, sea, air transport, etc.)

• Handling export customs clearance and import customs clearance procedures

• Purchasing transportation insurance

• Paying all freight, tariffs, taxes, and additional fees that may arise during transportation

• Bearing all risks of the goods from the seller's factory (such as damage, loss, etc.)

This "one-size-fits-all" division of responsibilities, although seemingly strict on the buyer, creates unique value for capable buyers.

The Four Core Advantages of EXW Terms: Why Are They Suitable for Professional Energy Storage Buyers?

1. Strongest Cost Controllability, Minimal Hidden Expenses

The surface quotation of EXW is usually the lowest among all terms—because the seller is only responsible for "delivering to the factory area" and does not need to bear additional costs such as transportation and customs clearance. For experienced buyers, this means:

• They can independently choose more cost-effective logistics providers (such as negotiating lower freight with long-term cooperative freight forwarders)

• Avoid the "logistics premium" that may be included in the seller's quotation under FOB, CIF, and other terms (some sellers will add transportation costs to the quotation)

• Precisely control costs at each link (such as export declaration fees, terminal handling fees, etc.) and reduce hidden expenses in "package quotations"

Example: A buyer purchases 10 units of 200kWh containerized energy storage systems from China. The EXW quotation may be 5%-8% lower than FOB. If the buyer has its own logistics channel, the total cost of freight + customs clearance can be reduced to 60% of the seller's quotation, and the final total cost is even lower.

Complete Control Over Logistics, Adapting to Complex Energy Storage Project Needs

The transportation of energy storage products (especially large containerized ESS and high-capacity lithium battery packs) has particularities: heavy weight, special size, and some are dangerous goods (need to comply with IMDG code requirements). EXW terms allow buyers to:

• Independently select professional logistics providers familiar with the transportation of energy storage products, avoiding delays caused by insufficient experience of ordinary freight forwarders (such as failing to apply for dangerous goods transportation certificates in advance)

• Flexibly arrange transportation routes and time (for example, combining energy storage cabinets with other equipment such as solar inverters and cables for transportation to reduce overall logistics costs)

• Monitor the dynamics of goods in real-time and handle emergencies promptly (such as quickly switching transportation plans in case of port congestion)

For energy storage projects that require "multi-supplier integration" (such as purchasing batteries, cabinets, and management systems at the same time), EXW enables buyers to uniformly schedule logistics, realize "one-time port collection and full container shipment", and greatly improve efficiency.

Suitable for Cross-Border E-Commerce and Distribution Models, Simplifying Supply Chain Levels

For energy storage product distributors, traders, or EPC contractors (engineering general contractors), EXW is an ideal choice to optimize the supply chain:

• They can directly pick up goods from the factory and then split the transportation according to different customer needs (for example, sending a batch of 5kWh household energy storage batteries to multiple countries in Europe and Southeast Asia respectively)

• Without relying on the seller's logistics network, it is convenient to build their own supply chain system (such as establishing regional distribution centers to shorten the delivery cycle for end customers)

• Especially suitable for large industrial orders purchased from China, they can cooperate with domestic logistics providers to realize low-cost land transportation from "factory to port" and then connect with international sea transportation

More Flexible Customs Clearance and Compliance, Adapting to Multi-Country Market Needs

Different countries have significant differences in import policies for energy storage products (such as CE certification in the EU, UL certification in the United States, and local standards in Southeast Asia). Choosing EXW, buyers can:

• Independently select customs clearance agents familiar with the destination country's regulations to avoid customs clearance delays caused by the seller's lack of understanding of local requirements (such as failing to provide the correct battery MSDS report)

• Adjust declared value, packaging labels, etc. according to the target market to ensure compliance (for example, the import tariff rate of energy storage equipment in some countries is related to the declaration method, and buyers can reasonably reduce tax burdens through professional operations)

• For projects that need to be imported in batches (such as first piloting 10 units and then purchasing 100 units in bulk), the flexibility of EXW can reduce the constraints of the early process

EXW vs Other Terms: Advantage Comparison Table

Typical Application Scenarios of EXW Terms in Energy Storage Projects

• Large Industrial Energy Storage Projects: For example, container energy storage systems above 1MWh supporting photovoltaic power plants, buyers usually have mature logistics teams, which can directly arrange land transportation from the factory to the port and then connect with sea transportation, with controllable overall costs.

• Bulk Purchases by Distributors: Energy storage product distributors need to supply goods to multiple countries. Choosing EXW allows flexible splitting of orders and distributing the same batch of goods to different destination countries, avoiding the "full container shipment" restriction under FOB and CIF terms.

• Transnational EPC General Contract Projects: When undertaking overseas energy storage projects, EPC contractors often purchase multiple types of equipment (energy storage batteries, inverters, brackets, etc.) at the same time. Through EXW, they can uniformly schedule logistics, realize "one-stop port collection", and optimize the overall construction period.

• Markets with High Compliance Requirements: For energy storage products exported to North America and the EU, buyers can independently select customs clearance agents familiar with local regulations to ensure compliance with UL, CE, and other certification requirements, avoiding customs clearance failures due to improper operation by the seller.

Before Choosing EXW Terms, Buyers Need to Make These Preparations

The advantages of EXW depend on the professional ability of the buyer:

• They need to have reliable local freight forwarders (such as international logistics providers with branches in China) that can handle the "factory pickup - port transportation" link

• Be familiar with the customs declaration process of the exporting country (such as China) and understand the export restrictions of energy storage products (such as lithium batteries need to provide UN38.3 test reports)

• Establish cooperation with customs clearance agents in the destination country to ensure complete import documents (commercial invoices, packing lists, certificates of origin, etc.)

• Purchase transportation insurance covering the entire process in advance (especially for high-value energy storage systems)

Dagong ESS's EXW Support Plan

As a professional manufacturer of energy storage systems, Dagong ESS provides special support for customers who choose EXW terms:

• Provide packaging that meets international transportation standards (such as anti-collision wooden frames, moisture-proof films, adapting to lithium battery transportation requirements)

• Assist in preparing documents required for export (product specifications, certification reports, packing details, etc.)

• Allow logistics providers designated by customers to enter the factory to pick up goods and provide loading assistance

• For large energy storage cabinets (such as 80kWh rack-mounted, 5MWh containerized), provide professional logistics guidance such as lifting point diagrams

Whether choosing EXW or other terms, Dagong ESS can provide customized logistics suggestions according to project needs to ensure the safe and efficient delivery of energy storage products.