EXW (Ex Works)

Buyer collects at the factory gate.

What it changes for you

Excludes inland freight, export clearance and terminal handling - which is why an EXW number looks lower.

In practice

EXW means the buyer collects at the factory gate. The price excludes inland freight to the port, export clearance and terminal handling, so an EXW number is structurally lower than an FOB number for the same goods and quantity. It is not a cheaper factory; it is a smaller scope. EXW suits buyers who already run their own forwarder in China, and it removes the factory from the export paperwork.

Questions about EXW

Why is an EXW price lower than an FOB price?

Because it covers less. Someone still pays the inland freight, the export clearance and the terminal handling - under EXW that someone is you. The factory is not cheaper, the scope is smaller.

Who should buy on EXW?

A buyer with an established forwarder in China, or one who wants full control of the export paperwork. A first-time importer usually does better on FOB, where the factory handles clearance and delivery to the port.

Other terms

• FOB (Free On Board) - Seller delivers the goods on board the vessel at the named port; cost and risk transfer there.
• MOQ (Minimum Order Quantity) - The smallest quantity a factory will run for one specification.
• Tooling cost - The one-off cost of the injection mould, die or print plate.
• Colourway tolerance - The measured range a factory will hold between sample and repeat production.
• AQL (Acceptable Quality Limit) - The sampling standard (ISO 2859-1) defining allowed defects per inspected lot.
• HS heading 9507 - The Harmonized System heading covering fishing rods, hooks, reels and artificial bait.

Send a specificationAll 14 terms