Incoterms Rules
EXW vs FOB: what is the difference
Under EXW the buyer collects the goods at the seller's premises and handles export clearance, transport to the port and loading. Under FOB the seller clears the goods for export, brings them to the port of shipment and loads them on board; the risk passes once they are on board.
Side by side
| EXW Ex Works | FOB Free On Board | |
|---|---|---|
| Transport | Any mode | Sea and inland waterway |
| Export clearance | Buyer | Seller |
| Import clearance | Buyer | Buyer |
| Main carriage paid by | Buyer | Buyer |
| Insurance | Not required | Not required |
| Risk passes to the buyer | When the goods are placed at the buyer's disposal at the seller's premises, not loaded | When the goods are loaded on board the vessel at the port of shipment |
Which one to choose
FOB fits sea shipments where the buyer books the vessel but wants the seller to handle everything up to loading at the port. EXW suits a buyer with its own logistics and agents in the seller's country. For containers or land transport, consider FCA instead of either.