What is the difference between exw and fob

EXW or EX- Works can be best described as the most basic and clear-cut shipment arrangement between the seller and the buyer, under which minimum responsibility lies with the seller and the buyer has more at stake. This accomplished, it becomes the responsibility of the buyer to arrange for necessary clearances so the consignment can be shipped.

This is done with the participation and support of a freight forwarder. The procedures involved generally include getting relevant insurance for the merchandise, export and customs clearance and completion of other necessary paperwork. Often trading companies source goods from manufacturers in one country and supply it to buyers in another.

EXW is an option that allows such companies to withhold their source of supply, since only the details of the trading company are mentioned in all the export documents. It indicate the responsibilities of buyers and sellers to cover all costs and arrangements for the shipping of goods.

Instead, the seller makes goods available at their premises and the buyer must incur transportation costs. Ex works EXW is a shipping agreement in which a seller makes a product available at a specific location.

In EXW we have to collect the material from suppliers door step where in FOB the supplier will deliver the goods to our shipping agent. Ex Works describes the situation where the seller is responsible for having her goods ready at her place of business. Free on Board is a situation where the seller is obligated to deliver her goods.

Products By Bayt. Use Our Mobile App. However, things could go wrong if the supplier refuses to pay local costs as agreed, or if he includes additional expenses that increase the previously agreed cost. In order to decide which incoterm to choose, you should consider the advantages and disadvantages for your specific case, namely:.

As we have seen, there are many factors and variables to consider, in order to be able to determine the success of a sales transaction from China. Yakkyofy offers an all-around service that includes product research, quality control, shipping, customs clearance of goods and home delivery.

Thanks to the Yakkyofy team, you will not have to worry about anything, you just have to decide what you want to buy and you will be put in contact with reliable Chinese suppliers who are used to trading with foreign countries. You can therefore buy quality goods, without having to deal with the terms of the shipment. You will not have problems with customs, documents or shipments, no additional costs compared to those agreed: with Yakkyofy you can buy from China with confidence.

Ask for a quote today! Yakkyo s. What is the difference between Ex Works and Free on Board? The following are also defined between seller and buyer: the breakdown of transportation costs; insurance coverage for the products; custom duties. Ex-works: what does it mean?