The difference between FOB and EXW
There are many kinds of terms for the international business. We says four groups:
Group E (EXW)
Group F (FOB, FCA, FAS)
Group C (CFR, CIF, CPT, CIP)
Group D (DAF, DES, DDU, DDP)
But the most commonly used by PowefulSky Mould are EXW, FOB, CFR and CIF, a brief overview of these four terms:
EXW: factory delivery
FOB: Delivery on board (the ship's side is the risk dividing point)
CFR: FOB + sea freight
CIF: CFR + insurance (=FOB + ocean freight + insurance)
Today let us learn more about the differences between EXW and FOB prices for Injection molds and plastic parts molding.
1. Different concepts
EXW is one of the international trade terms, which means that when the seller delivers the goods to the buyer for disposal at the location or other designated location (such as a factory, factory or warehouse), the delivery is completed, and the seller does not go through the export customs clearance procedures or will The goods are loaded with any means of transportation.
FOB is also called the on-board delivery price and is one of the commonly used trade terms in international trade. For FOB transactions, the buyer is responsible for sending the ship to pick up the goods. The seller shall load the goods on the vessel specified by the buyer within the shipping port specified in the contract and within the specified time limit and notify the buyer in time. When the goods are loaded on the designated ship at the port of shipment, the risk is transferred from the seller to the buyer.
2. Different delivery locations and methods
EXW is delivered at the factory, the place of delivery is the seller's location in the exporting country, the risk is transferred to the buyer, the export tax is borne by the buyer, and any method of transportation is applicable.
FOB is delivered on board the ship at the shipping port of the exporting country. The risk is transferred after crossing the ship’s side, the export tax is borne by the seller, and the applicable mode of transportation is water transportation.
3. Different customs declaration
EXW does not consider tax refund, FOB is to refund tax. In the terms of EXW, the buyer must pay for all pre-shipment inspections, including inspections compulsory by the authorities of the exporting country. For example, the commodity inspection fee for legally inspected goods. At the buyer’s request and at his own risk and expense, the seller must give the buyer all assistance when customs procedures are required.
In FOB terms, the seller must obtain the export and import license or other official license at his own risk and expense. When it is necessary to go through customs formalities, all customs formalities for export of goods shall be handled. At the buyer’s request and at his own risk and expense, the seller must give the buyer all assistance.
PowerfulSky Mould can export injection molds and plastic parts by different terms depends on the customer's requests.
