Ex Works (EXW) vs. Free On Board (FOB): What's the Difference?

Ex Works (EXW) vs. Free On Board (FOB): What's the Difference?

EXW and FOB are the trade terms between you and your supplier. The freight charge from us is the same under these terms.

 

Normally under FOB term, your supplier is responsible for the inland shipping from their warehouse to ours, as well as all the export related costs. 

 

Under EXW term, the rates quoted from your supplier are for the product costs only. The ownership of the products will be transferred to you once the products leave their factory/warehouse. Therefore, EXW product price from your supplier is normally lower than FOB price. Under this circumstance, we assume you need our pickup service.

 

You may compare the following to decide which one to choose, EXW or FOB:

FOB product price

vs.

EXW product price + our pickup fee + $45 export declaration fee

vs.

EXW product price + inland shipping fee charged by your supplier to send the products to our warehouse + $45 export declaration fee

 

Remember, our freight charge is the same whether it’s FOB or EXW between you and your supplier. The difference is mainly the pickup fee and the export declaration fee.

 

 

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