What is the difference between FOB and ex-works?

With ex works, the seller is not obligated to load the goods on the buyer’s designated method of transport. Free on board means the seller retains ownership and responsibility for the goods until they are loaded ‘on board’ a shipping vessel. Once on the ship, all liability transfers to the buyer.

What does ex mean in ex-works?

EXW – Ex Works Ex Works means that the seller shall deliver the goods as soon as they are made available to the buyer at the seller’s premises or other designated premises (e.g. factory, plant, warehouse, etc.).

What is the difference between ex-works and CIF?

Generally, EXW is the cheapest and CIF is the most expensive. If two suppliers give you nearly identical prices but one quotes EXW shipping terms and the other quotes FOB or CIF, the second quote will cost you significantly less.

Who pays duties and taxes on ex-works?

In an EXW shipment, the buyer is responsible for all transportation charges and must collect the goods from the seller. In a FOB shipment, the seller is responsible for exporting and paying the costs to load the cargo onto the vessel.

Who pays freight on ex-works?

buyer
Ex works (EXW) is a shipping arrangement in which a seller makes a product available at a specific location, but the buyer has to pay the transport costs.

Which is better ex-works or FOB?

EXW advantages Goods bought on EXW terms will often be slightly cheaper than products bought on FOB terms, as the supplier will include the costs of transport to the port, handling of the goods, and customs clearance to a FOB trade. Full control of the cargo and the transportation cost from start to finish.

What means FOB price?

free on board price
The f.o.b. price (free on board price) of exports and imports of goods is the market value of the goods at the point of uniform valuation, (the customs frontier of the economy from which they are exported).

Which is better EXW or FOB?

What is the difference between ex works and FOB?

Notes on Ex Works and FOB. The main difference between Ex Works and FOB is that with Ex Works the importer is responsible for all aspects of transporting the goods from door-to-door, while with FOB the importer is responsible for the origin port to door at destination.

What does ex works (EXW) mean?

International Business. ‘Ex Works‘ or EXW means that the seller delivers when the goods are placed at the disposal of the buyer at the seller’s premises or another named place (i.e. works, factory, warehouse, etc.) not cleared for export and not loaded on any collecting vehicle.

What does ex works include?

Ex works means that the goods will be picked up by the buyer at the seller’s warehouse. Both are common incoterms , or international commerce terms, used in contracts by import and export businesses. They also typically include abbreviated terms such as FAS.

What does ex factory price mean?

Ex-factory price means, the selling cost of goods at seller’s factory. All other expenses from the factory of seller to buyer’s place have to be borne by the buyer. So the responsibility of getting goods from the seller’s factory is with the buyer.