Both the terms FOB and ex works can be used to make sure you know all the costs from the start of the shipping process to receiving the goods. The ex works terms leave all responsibility and risk in the hands of the buyer, while the FOB terms share the responsibility in between.
However, the difference between the two is clear: when you use EXW you are responsible for all costs associated with your transport to the UK, while with a FOB agreement you are only responsible for costs associated with the arrival of your goods on board the ship (or aircraft) arise from the fact that the supplier is responsible for the goodsAnother question is who pays the shipping costs at the factory?
Ex Works (EXW) is a shipping agreement whereby a seller makes a product available in a specific location, but the buyer has to pay the shipping costs.
Ex works - EXW vs. Free on board - FOB: an overview. In the case of ex works, the seller is not obliged to load the goods in the mode of transport indicated by the buyer. Instead, the seller has to deliver the product to a selected location and the buyer bears the transport costs.
EXW stands for Ex Works, whereby the supplier is solely responsible for preparing the products for delivery from its location. It is usually the factory. And the buyer (you) is responsible for all transportation costs for the rest of the trip. In other words, to send it from the factory to the destination.
The costs associated with the FOB include the transport of the goods to the port of shipment, the loading of the goods on the ship, sea transport, insurance and unloading and the transport of the goods from the port of arrival to the final destination.
Free on Board, or FOB for short, is a term that is often used in terms of shipping when the seller specifies a price that includes the cost of delivering the goods to the nearest port. FOB is a price the buyer pays for the product, excluding some of the following charges: Loading. Safety. Load.
The indication of the port FOB means that the seller pays the transport of the goods to the port of shipment plus the costs of loading. The buyer bears the costs of sea freight, insurance, unloading and transport from the port of arrival to the final destination.
Free on board
Ex Works (EXW)
Original conditions of sale or F.A.B. The time to sell to destination is the price in a F.O.B. items sold. The destination contract is a delivered price with transport costs integrated into the price. The original contract does not provide for any compensation for the transport of the goods from the seller to the buyer.
CIF - COST AND SHIPPING INSURANCE (specific port of destination): The seller has to bear the costs and the shipping includes insurance to bring the goods to the port of destination. FOB - FREE ON BOARD (Shipping port listed):
We compare FCA with the conditions of delivery ex works. In case of delivery by Exworks, the seller delivers the goods to the buyer at his business premises (seller). In case of FCA delivery, the exported goods are delivered to the carrier by the seller at the place specified and defined in the contract.
The main difference
Ex works means that the seller fulfills his delivery obligation when he has made the goods available to the buyer at his place (e.g. factory, factory, warehouse, etc.). The buyer bears all costs and risks associated with transporting the goods from the seller’s place to the desired destination.
The CIF value (cost, insurance, shipping) is the total of the invoice value + insurance + shipping + tax (if applicable).
Duty Free Shipping