Is ex works the same as FOB origin?

Asked By: Helge Tikaram | Last Updated: 9th May, 2020
Category: business and finance logistics
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FOB and Ex Works terms can both be used to ensure you know all of your costs from the start of the shipping process all the way up to receiving your goods. Ex Works terms leave all responsibility and risk in the hands of the buyer, whereas FOB terms split the responsibility down the middle.

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Also asked, what is the difference between ex works and FOB?

However, the difference between the two is clear: Using EXW, you are responsible for all costs associated with your transport to the UK, whereas, with an FOB agreement, you are only accountable for the costs that come after your goods have boarded the ship (or aircraft), as your supplier is responsible for the local

Also, who pays freight on ex works? 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.

Keeping this in view, what does FOB ex works mean?

Ex WorksEXW vs. Free On Board – FOB: An Overview. With Ex works, the seller is not obligated to load the goods on the buyer's designated method of transport. Instead, the seller must make the product available at a selected location, and the buyer must incur transportation costs.

What is EXW unit price?

EXW stands for Ex Works where the supplier is only responsible for making the products ready for delivery from their location. Normally this is the factory. And the buyer (you) are responsible for all transportation costs the rest of the way. In other words to ship it from the factory to your destination.

31 Related Question Answers Found

What does FOB cost include?

The costs associated with FOB include transportation of the goods to the port of shipment, loading the goods onto the shipping vessel, marine freight transport, insurance, and unloading and transporting the goods from the arrival port to the final destination.

What is FOB price?

Free On Board, in short FOB, is a term frequently used in shipping terms where the seller quotes a price including the cost of delivering goods to the nearest port. FOB is a price that the buyer pays for the product excluding any of the following costs: Loading. Insurance. Freight.

How does FOB shipping work?

Indicating "FOB port" means that the seller pays for transportation of the goods to the port of shipment, plus loading costs. The buyer pays the cost of marine freight transport, insurance, unloading, and transportation from the arrival port to the final destination.

What is FOB and CNF?

But the main decision requiring active involvement of all parties is shipments. There are two major terms of shipment widely used round the globe. These are freight on board (FOB) and cost net freight (CNF). A prepaid basis shipment means the buyer will pay the freight charges before the shipment occurs.

Does ex works include packaging?

Ex Works (EXW)
This rule places minimum responsibility on the seller, who merely has to make the goods available, suitably packaged, at the specified place, usually the seller's factory or depot. Although the seller is not obliged to load the goods, if the seller does so, this is at the buyer's risk!

What is FOB origin vs FOB destination?

Origin” term of sale or an “F.O.B. Destination” term of sale is that the price of the goods sold in an “F.O.B. Destination” contract is a “delivered price” where the cost of transportation is “built in” to the price. Origin” contract does not include a charge for transporting the goods from the seller to the buyer.

What does FCA mean?

Free Carrier

What is FOB and CIF price?

CIFCOST INSURANCE AND FREIGHT (named port of destination): Seller must pay the costs and freight includes insurance to bring the goods to the port of destination. FOB – FREE ON BOARD (named port of shipment):

What are FOB shipping terms?

The term FOB shipping point is a contraction of the term "Free on Board Shipping Point." The term means that the buyer takes delivery of goods being shipped to it by a supplier once the goods leave the supplier's shipping dock.

What is the difference between ex works and FCA?

Let us compare FCA with ex works terms of delivery. In terms of delivery Ex-works, the seller delivers goods to the buyer at his (seller's) premises. However, in terms of FCA delivery, the export cleared goods are delivered by the seller to the carrier at the named and defined location mentioned in the contract.

What is difference between FOB and CIF?

The Main Difference
With an FOB shipment, this occurs when the shipment reaches the port or other facility designated as the point of origin. With a CIF agreement, the seller pays costs and assumes liability until the goods reach the port of destination chosen by the buyer.

What does ex works mean on an invoice?

"Ex works" means that the seller fulfils his obligation to deliver when he has made the goods available at his premises (i.e. works, factory, warehouse, etc) to the buyer. The buyer bears all costs and risks involved in taking the goods from the seller's premises to the desired destination.

How is CIF calculated?

CIF (Cost, Insurance, Freight) value is the total value of “Invoice value + Insurance + Freight + Ex-work charges (If any)”.

What does CIF mean?

Cost, Insurance, and Freight

What does DDP mean?

Delivered Duty Paid

What does ex works Shipping mean?

EXW: Ex Works. The seller makes the goods available at their premises, or at another named place. The Ex Works term is often used when making an initial quotation for the sale of goods without any costs included. EXW means that a buyer incurs the risks for bringing the goods to their final destination.