{"id":2531,"date":"2025-02-10T18:25:29","date_gmt":"2025-02-10T18:25:29","guid":{"rendered":"https:\/\/www.supplyia.com\/?p=2531"},"modified":"2025-03-24T09:14:59","modified_gmt":"2025-03-24T09:14:59","slug":"exw-vs-fob","status":"publish","type":"post","link":"https:\/\/www.supplyia.com\/exw-vs-fob\/","title":{"rendered":"What is the Difference Between EXW vs FOB (Fob China)?"},"content":{"rendered":"<p><span style=\"font-family: Open Sans;\"><span style=\"font-size: 13pt;\">Ex works vs fob(EXW vs FOB) these two terms are related to Freight service. <\/span><span style=\"font-size: 13pt;\">Both Exw vs Fob are Incoterms to refer to international shipments. It is a key factor for these clients who needs this service for better and reliable transportation of goods. <\/span><\/span><\/p>\n<p><span style=\"font-family: Open Sans;\"><span style=\"font-size: 13pt;\">Before you choose between exw vs fob, you will first need to understand the difference between the EXW vs FOB to fully understand the appropriate usage of these terms and what they encompass.<\/span>\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-family: Open Sans;\"><strong><b><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-2533\" src=\"https:\/\/www.supplyia.com\/wp-content\/uploads\/2021\/03\/EXW-vs-FOB.jpeg\" alt=\"EXW vs FOB\" width=\"800\" height=\"451\" srcset=\"https:\/\/www.supplyia.com\/wp-content\/uploads\/2021\/03\/EXW-vs-FOB.jpeg 1012w, https:\/\/www.supplyia.com\/wp-content\/uploads\/2021\/03\/EXW-vs-FOB-600x338.jpeg 600w, https:\/\/www.supplyia.com\/wp-content\/uploads\/2021\/03\/EXW-vs-FOB-300x169.jpeg 300w, https:\/\/www.supplyia.com\/wp-content\/uploads\/2021\/03\/EXW-vs-FOB-768x433.jpeg 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/b><\/strong><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_17 counter-hierarchy counter-roman ez-toc-grey\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" style=\"display: none;\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.supplyia.com\/exw-vs-fob\/#EXW_vs_FOB\" title=\"EXW vs FOB\">EXW vs FOB<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.supplyia.com\/exw-vs-fob\/#Exwork_vs_Fob\" title=\"Exwork vs Fob:\">Exwork vs Fob:<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.supplyia.com\/exw-vs-fob\/#Basic_Trade_Terms_Incoterms_Explained\" title=\"Basic Trade Terms (Incoterms) Explained\">Basic Trade Terms (Incoterms) Explained<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.supplyia.com\/exw-vs-fob\/#How_to_Determine_What_Incoterms_to_UseEXW_vs_Fob\" title=\"How to Determine What Incoterms to Use(EXW vs Fob)\">How to Determine What Incoterms to Use(EXW vs Fob)<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.supplyia.com\/exw-vs-fob\/#What_Does_FOB_China_Mean\" title=\"What Does FOB China Mean?\">What Does FOB China Mean?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.supplyia.com\/exw-vs-fob\/#Exworks_vs_fob_Conclusion\" title=\"Exworks vs fob Conclusion\">Exworks vs fob Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"EXW_vs_FOB\"><\/span><span style=\"font-family: Open Sans; font-size: 24pt;\"><strong><b>EXW vs FOB<\/b><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<h3><span style=\"font-family: Open Sans;\"><strong><span style=\"font-size: 13pt;\">FOB Meaning<\/span><\/strong><\/span><\/h3>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\">Free on Board (FOB) is FOB is a shipping term that stands for \u201cfree on board.\u201d A shipment term that defines the point in the supply chain when a buyer or seller becomes liable for the goods being shipped.<\/span><\/p>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\">In FOB, the responsibility of loading the package on your desired ship falls on the seller, and only after that does the responsibility of goods passes on to you.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3 id=\"article-heading_2-0\" class=\"comp article-heading mntl-text-block\"><span style=\"font-family: Open Sans;\"><strong><span style=\"font-size: 13pt;\">Ex Works (EXW) Meaning<\/span><\/strong><\/span><\/h3>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\">Incoterm EXW meaning the shipping arrangement in which a seller makes a product available at a specific location, and the buyer has to pick up by themselves.<\/span><\/p>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\">In EXW, the arrangement means that the responsibility of collecting, loading, and transporting falls on you. The seller only has to let you the pick-up location.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-family: Open Sans;\"><strong><b>\u00a0<\/b><\/strong><\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span style=\"font-family: Open Sans; font-size: 16pt;\"><strong><b>EXW Shipping Analysis | Pros and Cons<\/b><\/strong><\/span><\/h3>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\">EXW is a vastly used method of shipping around the world. However, like almost everything we come across, it has its benefits and downsides.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h4><span style=\"font-family: Open Sans; font-size: 14pt;\"><strong><b>Pros of EXW<\/b><\/strong><\/span><\/h4>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\">Under these terms, the responsibility and risks, and costs associated with shipping the packages are on the buyer. Thus, with the supplier&#8217;s help, the EXW terms are very helpful if the buyer needs to know their total costs.\u00a0<\/span><\/p>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\">Another advantage is the control that comes with these terms. The buyer can choose everything on his own. This means they are sure that any chances of fraud have been reduced and the chances of the supplier adding a margin on the transportation fee are eliminated.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h4><span style=\"font-family: Open Sans; font-size: 14pt;\"><strong><b>Cons of EXW<\/b><\/strong><\/span><\/h4>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\">The downside of EXW is related to the customs clearance of the goods in the origin country. The customs department contacts the supplier to collect information regarding the packages. <\/span><\/p>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\">However, if the information turns out to be misleading or misstated, the costs of extra inspections and any possible additional costs will have to be borne by the buyer. <\/span><\/p>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\">Additionally, if the customs department chooses the goods or package for random extra inspection, any resulting costs will also have to be borne by the buyer.\u00a0<\/span><\/p>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\">Moreover, it is highly possible that a supplier who is not offering FOB terms might not have a license to export. In that case, if you get into an EXW terms contract with such a supplier, you will be charged for the export license fee, which is usually very high. <\/span><\/p>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\">Thus, <strong>a small tip<\/strong>: do remember to ask if the supplier has the license if you are being refused FOB terms.\u00a0<\/span><\/p>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\">It is also necessary to mention that if you are accustomed to traveling overseas to place orders with multiple vendors, you might be at the risk of bearing very high costs. This is because the vendors might not let you know this, but you will most likely be signing an EXW contract with each of them. Meaning the transport costs will be on you.\u00a0\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h3><span style=\"font-family: Open Sans; font-size: 16pt;\"><strong><b>FOB Shipping Analysis | Pros and Cons<\/b><\/strong><\/span><\/h3>\n<p>&nbsp;<\/p>\n<h4><span style=\"font-family: Open Sans; font-size: 14pt;\"><strong><b>Pros of FOB<\/b><\/strong><\/span><\/h4>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\">FOB conditions have many benefits to the buyer. For example, the buyer buys insurance and has the initiative in the choice of insurance types\\rates\\claims; <\/span><\/p>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\">The buyer can specify transportation and can obtain transportation cost control\\get bulk shipping discounts\\require shipping credits\\batch Import customs clearance and other conveniences;<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-family: Open Sans;\"><strong><span style=\"font-size: 13pt;\">FOB prices allow buyers to evaluate the import costs of various countries intuitively.<\/span><\/strong><\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h4><span style=\"font-family: Open Sans; font-size: 14pt;\"><strong><b>Cons of FOB<\/b><\/strong><\/span><\/h4>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\">If you are a new buyer, FOB may have some risks. You may find unprofessional freight forwarders and you will suffer a lot of losses at your own expense:<\/span><\/p>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\"> Obtain export licenses at your own risk and expense, go through export procedures, be responsible for all costs and risks of loss or damage to the goods before the goods pass the ship\u2019s rail at the designated port of shipment, provide commercial invoices, clean shipment documents, etc.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Exwork_vs_Fob\"><\/span><span style=\"font-family: Open Sans; font-size: 24pt;\"><strong>Exwork vs Fob:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<table border=\"2\" data-sourcepos=\"3:1-9:232\">\n<tbody>\n<tr data-sourcepos=\"3:1-3:63\">\n<th style=\"text-align: center; background-color: #ebcd26;\" data-sourcepos=\"3:1-3:14\"><span style=\"font-family: Open Sans; font-size: 10pt;\"><strong>Incoterm<\/strong><\/span><\/th>\n<th style=\"text-align: center; background-color: #ebcd26;\" data-sourcepos=\"3:16-3:35\"><span style=\"font-family: Open Sans; font-size: 10pt;\"><strong>EXW (Ex Works)<\/strong><\/span><\/th>\n<th style=\"text-align: center; background-color: #ebcd26;\" data-sourcepos=\"3:37-3:61\"><span style=\"font-family: Open Sans; font-size: 10pt;\"><strong>FOB (Free on Board)<\/strong><\/span><\/th>\n<\/tr>\n<tr data-sourcepos=\"5:1-5:144\">\n<td style=\"text-align: center;\" data-sourcepos=\"5:1-5:29\">\n<h3><span style=\"font-family: Open Sans; font-size: 10pt;\"><strong>Seller&#8217;s responsibility<\/strong><\/span><\/h3>\n<\/td>\n<td style=\"text-align: center;\" data-sourcepos=\"5:31-5:88\"><span style=\"font-family: Open Sans; font-size: 10pt;\">Delivers goods to a named place\u00a0at the buyer&#8217;s disposal.<\/span><\/td>\n<td style=\"text-align: center;\" data-sourcepos=\"5:90-5:142\"><span style=\"font-family: Open Sans; font-size: 10pt;\">Loads goods on board the vessel named by the buyer.<\/span><\/td>\n<\/tr>\n<tr data-sourcepos=\"6:1-6:173\">\n<td style=\"text-align: center;\" data-sourcepos=\"6:1-6:28\">\n<h3><span style=\"font-family: Open Sans; font-size: 10pt;\"><strong>Buyer&#8217;s responsibility<\/strong><\/span><\/h3>\n<\/td>\n<td style=\"text-align: center;\" data-sourcepos=\"6:30-6:102\"><span style=\"font-family: Open Sans; font-size: 10pt;\">Arranges and pays for all costs and risks from the named place onwards.<\/span><\/td>\n<td style=\"text-align: center;\" data-sourcepos=\"6:104-6:171\"><span style=\"font-family: Open Sans; font-size: 10pt;\">Arranges and pays for all costs and risks from the vessel onwards.<\/span><\/td>\n<\/tr>\n<tr data-sourcepos=\"7:1-7:75\">\n<td style=\"text-align: center;\" data-sourcepos=\"7:1-7:10\">\n<h3><span style=\"font-family: Open Sans; font-size: 10pt;\"><strong>Cost<\/strong><\/span><\/h3>\n<\/td>\n<td style=\"text-align: center;\" data-sourcepos=\"7:12-7:41\"><span style=\"font-family: Open Sans; font-size: 10pt;\">Usually lower for the buyer.<\/span><\/td>\n<td style=\"text-align: center;\" data-sourcepos=\"7:43-7:73\"><span style=\"font-family: Open Sans; font-size: 10pt;\">Usually higher for the buyer.<\/span><\/td>\n<\/tr>\n<tr data-sourcepos=\"8:1-8:149\">\n<td style=\"text-align: center;\" data-sourcepos=\"8:1-8:10\">\n<h3><span style=\"font-family: Open Sans; font-size: 10pt;\"><strong>Risk<\/strong><\/span><\/h3>\n<\/td>\n<td style=\"text-align: center;\" data-sourcepos=\"8:12-8:83\"><span style=\"font-family: Open Sans; font-size: 10pt;\">Buyer bears all risk once goods are made available at the named place.<\/span><\/td>\n<td style=\"text-align: center;\" data-sourcepos=\"8:85-8:147\"><span style=\"font-family: Open Sans; font-size: 10pt;\">Seller bears risk until goods are loaded on board the vessel.<\/span><\/td>\n<\/tr>\n<tr data-sourcepos=\"9:1-9:232\">\n<td style=\"text-align: center;\" data-sourcepos=\"9:1-9:17\">\n<h3><span style=\"font-family: Open Sans; font-size: 10pt;\"><strong>Suitability<\/strong><\/span><\/h3>\n<\/td>\n<td style=\"text-align: center;\" data-sourcepos=\"9:19-9:133\"><span style=\"font-family: Open Sans; font-size: 10pt;\">Suitable for buyers who want more control over the shipping process and are comfortable with taking on more risk.<\/span><\/td>\n<td style=\"text-align: center;\" data-sourcepos=\"9:135-9:230\"><span style=\"font-family: Open Sans; font-size: 10pt;\">Suitable for buyers who want less hassle and prefer the seller to handle the shipping process.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<ul>\n<li><span style=\"font-family: Open Sans; font-size: 12pt;\">EXW is the most basic Incoterm and places the most responsibility on the buyer.<\/span><\/li>\n<li><span style=\"font-family: Open Sans; font-size: 12pt;\">FOB is a more common Incoterm and provides a balance of responsibility between the buyer and seller.<\/span><\/li>\n<li><span style=\"font-family: Open Sans; font-size: 12pt;\">The choice of Incoterm should be based on the specific needs of the buyer and seller.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Basic_Trade_Terms_Incoterms_Explained\"><\/span><span style=\"font-size: 24pt; font-family: Open Sans;\"><strong>Basic Trade Terms <\/strong><strong>(<\/strong><strong>Incoterms) Explained<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-family: Open Sans;\"><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/www.supplyia.com\/wp-content\/uploads\/2020\/12\/Incoterm-Alibaba-Incoterm.png\" alt=\"\" width=\"1064\" height=\"548\" \/><\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\">Incoterms, also known as Trade Terms, are essentially international contractual terms applied when making sales. The most common incoterms are EXW and FOB. Let us look at the above recognizable terms as outlined in the incoterms newest.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li><span style=\"font-family: Open Sans; font-size: 13pt;\">1. FOB. That is delivery at the terminal in China.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 13pt; font-family: Open Sans;\">FOB=Value of goods + Domestic freight.<\/span><\/p>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\">If it is agreed to deliver at Shanghai port, it is called <strong>FOB SHANGHAI<\/strong>. Under these conditions, except for the value of goods themselves, the freight, customs declaration, export procedures for transporting the goods to the Shanghai terminal are also added to the FOB. This is also part of the cost.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li><span style=\"font-family: Open Sans; font-size: 13pt;\">2. C&amp;F. That is delivery at a buyer terminal.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 13pt; font-family: Open Sans;\">C&amp;F = FOB + ocean freight.<\/span><\/p>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\">If it is agreed to deliver at New York port, it is called <strong>CNF NEW YORK<\/strong>. This condition is the FOB price plus the ocean freight charges for shipping the goods to New York, USA.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li><span style=\"font-family: Open Sans; font-size: 13pt;\">3. CIF. It is agreed to deliver at a buyer terminal.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 13pt; font-family: Open Sans;\">CIF = FOB + Ocean Freight + Insurance. <\/span><\/p>\n<p><span style=\"font-size: 13pt; font-family: Open Sans;\">or, <\/span><\/p>\n<p><span style=\"font-size: 13pt; font-family: Open Sans;\">CIF = CNF + Insurance Premium.<\/span><\/p>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\">Because the type of goods and the place of delivery are different, the <a href=\"https:\/\/www.supplyia.com\/how-to-buy-shipping-insurance-when-shipping-from-china\/\">insurance fee<\/a> is also slightly different.<\/span><\/p>\n<p><span style=\"font-family: Open Sans;\"><span style=\"font-size: 13pt;\">The insurance company determines the insurance&#8217;s amount, and there are several types of insurance, but we usually choose all risks<\/span><span style=\"font-size: 13pt;\">.<\/span><\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: center;\"><iframe src=\"\/\/www.youtube.com\/embed\/9UnFj8AeprM?t=22s\" width=\"500\" height=\"280\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h2 class=\"css-a5m6co-text css-p8ym46-fontFamily css-11397xj-fontSize css-15qzf5r-display css-7bji7i-wordBreak\"><span class=\"ez-toc-section\" id=\"How_to_Determine_What_Incoterms_to_UseEXW_vs_Fob\"><\/span><span style=\"font-family: Open Sans; font-size: 24pt;\"><strong><span class=\"\">How to Determine What Incoterms to Use(EXW vs Fob)<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\">When it comes to <a href=\"https:\/\/www.supplyia.com\/shipping-from-china-to-the-us\/\">shipping from China<\/a>, customers often ask us what international trade term options should they choose: EXW vs Fob. Our typical answer is, \u201cMost buyers choose FOB, so this may be what you want.\u201d But this is a bit short. <\/span><\/p>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\">Let us understand in more detail how to choose the right trade terms option that meets your needs from the list of the 2020 International Trade Term Interpretation General Rules.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\">To have a deeper understanding of the general principles of interpretation of major trade terms, we have prepared the following flow chart:<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-family: Open Sans;\"><a class=\"fancybox image\" href=\"https:\/\/www.supplyia.com\/wp-content\/uploads\/2020\/12\/how-to-determine-what-incoterms-to-use-2.png\"><img decoding=\"async\" class=\"aligncenter wp-image-3476\" src=\"https:\/\/www.supplyia.com\/wp-content\/uploads\/2020\/12\/how-to-determine-what-incoterms-to-use-2.png\" sizes=\"(max-width: 1221px) 100vw, 1221px\" srcset=\"https:\/\/www.supplyia.com\/wp-content\/uploads\/2020\/12\/how-to-determine-what-incoterms-to-use-2.png 1221w, https:\/\/www.supplyia.com\/wp-content\/uploads\/2020\/12\/how-to-determine-what-incoterms-to-use-2-300x163.png 300w, https:\/\/www.supplyia.com\/wp-content\/uploads\/2020\/12\/how-to-determine-what-incoterms-to-use-2-768x417.png 768w\" alt=\"\" width=\"800\" height=\"434\" \/><\/a><\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\">If you know exactly what you are doing, you can certainly define your own trade incoterms. The General Principles of Interpretation of International Trade Terms in 2020 are just termed \u201cpre-packaged\u201d to simplify people\u2019s lives, but in fact, there are countless variants of them.<\/span><\/p>\n<p><span style=\"font-family: Open Sans;\"><strong><span style=\"font-size: 13pt;\">So, You do not need to be strictly restricted by any international trade term.<\/span><\/strong><\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\" data-preserver-spaces=\"true\">Please know that the general rules for interpreting trade terms listed on this page are all pre-packaged transport terms. They are advisory and not mandatory. If you are buying a large number of goods, these terms should not limit your creativity.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\" data-preserver-spaces=\"true\">Below is an example:\u00a0<\/span><\/p>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\" data-preserver-spaces=\"true\">Customers want to receive the goods in their own warehouses and let the seller pay import duties, but the customers want to control the transportation (because they know they are more efficient than the supplier in terms of transportation). So they want DDU, which should be similar to FOB except for transportation.<\/span><\/p>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\" data-preserver-spaces=\"true\">It is not complicated to write these into the contract. A <a href=\"https:\/\/www.supplyia.com\/shipping-agent-in-china\/\">professional logistics agent<\/a>\u00a0can help you see the opportunities and ensure that your contract contains all the essential terms.<\/span><\/p>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\" data-preserver-spaces=\"true\">If you buy in small quantities from Chinese or Indian suppliers, they may not accept customized shipping conditions. But if you represent a certain size of your business, they will usually listen to you and show a certain degree of flexibility.<\/span><\/p>\n<p><span style=\"font-size: 13pt; font-family: Open Sans;\">If you are absolutely new buyer, DDP may be a good choice.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Does_FOB_China_Mean\"><\/span><span style=\"font-family: Open Sans;\"><strong><span class=\"___SText_anxqe-ko_\" data-ui-name=\"Link.Text\">What Does FOB China Mean?<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-family: Open Sans;\">&#8220;FOB China&#8221; refers to a shipping term used in international trade, where &#8220;FOB&#8221; stands for &#8220;Free On Board.&#8221; Specifically, it indicates that the seller (typically a supplier or manufacturer in China) is responsible for all costs and risks associated with delivering the goods to a specified port in China and loading them onto a shipping vessel. <\/span><\/p>\n<p><span style=\"font-family: Open Sans;\">Once the goods are on board the ship at the designated Chinese port (e.g., FOB Shanghai or FOB Shenzhen), the responsibility, costs, and risks transfer to the buyer.<\/span><\/p>\n<p><span style=\"font-family: Open Sans;\">In practical terms:<\/span><\/p>\n<ul>\n<li><span style=\"font-family: Open Sans;\"><strong>Seller&#8217;s responsibilities<\/strong>: Producing the goods, transporting them from their facility to the port, handling export customs clearance, and covering loading costs.<\/span><\/li>\n<li><span style=\"font-family: Open Sans;\"><strong>Buyer&#8217;s responsibilities<\/strong>: Arranging and paying for ocean freight, insurance, unloading at the destination port, import customs clearance, and transportation to the final destination.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<blockquote><p><em><span style=\"font-family: Open Sans;\">For example, if a quote is listed as &#8220;<strong>FOB Shanghai<\/strong>,&#8221; it means the price includes all costs up to the point where the goods are loaded onto the ship in Shanghai. After that, the buyer takes over. This term is part of the Incoterms (International Commercial Terms) defined by the International Chamber of Commerce and is widely used when importing goods from China due to its clarity in splitting obligations between buyer and seller.<\/span><\/em><\/p><\/blockquote>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Exworks_vs_fob_Conclusion\"><\/span><span style=\"font-family: Open Sans;\"><strong><span class=\"___SText_1hgw7-red-team\" style=\"font-size: 18pt;\" data-ui-name=\"Link.Text\">Exworks vs fob Conclusion<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\">To sum up Exw vs Fob, the freight costs under EXW terms might be high, but you get a very clear idea of all of your costs and control most of them (except for the customs inspections).<\/span><\/p>\n<p><span style=\"font-size: 13pt; font-family: Open Sans;\">The difference between fob and exw is the shipment location arrangement. Usually, goods shipped by EXW will generally be cheaper FOB, as Free on Board will make the supplier cover shipping, handling and customs clearance costs in the country of origin. However, EXW terms are generally riskier because the supplier is only responsible for the goods until they reach their destination.<\/span><\/p>\n<p><span style=\"font-family: Open Sans; font-size: 13pt;\">My point is to <strong>avoid thinking<\/strong>, \u201cSo, which international trade term should I choose?\u201d without looking at alternatives. Choosing the right trade terms all depends your import experience levels.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ex works vs fob(EXW vs FOB) these two terms are related to Freight service. Both Exw vs Fob are Incoterms to refer to international shipments. It is a key factor for these clients who needs this service for better and reliable transportation of goods. Before you choose between exw vs fob, you will first need &hellip; <a href=\"https:\/\/www.supplyia.com\/exw-vs-fob\/\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">What is the Difference Between EXW vs FOB (Fob China)?<\/span> <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":2533,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[11],"tags":[2390],"class_list":["post-2531","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-how-to-ship-from-china","tag--exw-vs-fob"],"_links":{"self":[{"href":"https:\/\/www.supplyia.com\/wp-json\/wp\/v2\/posts\/2531","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.supplyia.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.supplyia.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.supplyia.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.supplyia.com\/wp-json\/wp\/v2\/comments?post=2531"}],"version-history":[{"count":5,"href":"https:\/\/www.supplyia.com\/wp-json\/wp\/v2\/posts\/2531\/revisions"}],"predecessor-version":[{"id":11985,"href":"https:\/\/www.supplyia.com\/wp-json\/wp\/v2\/posts\/2531\/revisions\/11985"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.supplyia.com\/wp-json\/wp\/v2\/media\/2533"}],"wp:attachment":[{"href":"https:\/\/www.supplyia.com\/wp-json\/wp\/v2\/media?parent=2531"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.supplyia.com\/wp-json\/wp\/v2\/categories?post=2531"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.supplyia.com\/wp-json\/wp\/v2\/tags?post=2531"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}