DOC KB-BUY-009REV 2026-09-21CLASS: PUBLIC
EXW vs FOB: Shipping Terms for Protective Case Buyers
Direct answer
Under Incoterms® 2020, EXW (Ex Works) means the buyer takes over the goods at the seller's premises and arranges everything after — export clearance, trucking, port, freight and insurance. FOB (Free On Board) means the seller delivers the goods cleared for export onto the vessel at the named port; risk transfers once the goods are on board. For overseas B2B buyers without a local China forwarder, FOB is normally the safer choice.
§01Side-by-side
| Obligation | EXW (seller) | FOB (seller) |
|---|---|---|
| Loading at factory | buyer's cost/risk | seller |
| Export clearance | buyer | seller |
| Inland trucking to port | buyer | seller |
| Ocean freight | buyer | buyer |
| Insurance | buyer | buyer |
| Risk transfers | at factory gate | on board vessel |
§02Choosing between them
- Choose FOB if you (the buyer) have your own freight forwarder and want factory-side risk and paperwork on the seller. It is the standard term for experienced importers buying FOB China ports.
- Choose EXW only if you have a trusted forwarder inside the seller's country who can handle export clearance for you — otherwise a minor customs hiccup becomes your problem at the origin.
- Watch for FOB only from the named port: "FOB China" is not a term; "FOB Shenzhen" or "FOB Ningbo" is. Name the terminal.
- For full-service door delivery the buyer-side alternative is DAP/DDP, but many B2B manufacturers quote only EXW/FOB — decide whether your side can absorb destination charges before committing.
Cost reality check: the ocean freight on a pallet of 40 protective cases is often a small share of landed cost; the expensive surprises are destination handling, duties and demurrage. Model those before choosing a term, not after the container sails.