EXW and FOB for case shipments: what each term makes you responsible for
Where the risk transfers, who books what, and the paperwork that gets containers held.
Short answer
- Under EXW the seller makes goods available at their premises; you arrange inland transport, export clearance and everything after.
- Chinese export clearance, commodity inspection where relevant, and port documentation are far cheaper and faster when the seller does them.
- The term with the named place ("FOB Shenzhen" not "FOB"), the currency, the Incoterms edition, the marking requirements on cartons, the pallet pattern, and the inspection point that triggers the final payment.
- A door-to-door price including duties can be legitimate, but it hides the customs value and the importer of record.
The line that matters
Under EXW the seller makes goods available at their premises; you arrange inland transport, export clearance and everything after. Under FOB the seller carries the goods to the loading port and clears them for export; you take freight, insurance and destination costs from the ship’s rail.
Why most case buyers should use FOB
Chinese export clearance, commodity inspection where relevant, and port documentation are far cheaper and faster when the seller does them. EXW looks cheaper on the quotation and usually is not, once you price your own forwarder handling a first-time export from an inland plant.
What to write on the purchase order
The term with the named place ("FOB Shenzhen" not "FOB"), the currency, the Incoterms edition, the marking requirements on cartons, the pallet pattern, and the inspection point that triggers the final payment. Many plants will quote a 30% deposit with the balance released after inspection; make that explicit.
DDP and "all-in" offers
A door-to-door price including duties can be legitimate, but it hides the customs value and the importer of record. Several case-category suppliers do not offer DDP at all — including the publisher of this directory, which ships EXW or FOB only and holds no overseas warehouse. If a quotation includes DDP from an entity whose licence scope says trading, ask who the importer of record is and get it in writing.
The documents that get held
Packing list inconsistent with the carton marks, a certificate of origin applied for late, missing ISPM 15 marks on wooden crates, and a product name on the invoice that does not match the customs code. Fix all four before the container is loaded, not after.
Questions buyers ask
Who insures the goods?
Under FOB and EXW, the buyer normally arranges marine cargo insurance. Confirm the coverage starts at the factory floor if you are buying EXW, otherwise there is a gap during inland transit.