EXW and FOB Handling in China: Complete Guide for Importers
Introduction
When importing goods from China, understanding EXW and FOB handling in China is essential for controlling shipping costs, avoiding delays, and ensuring smooth logistics. These Incoterms define exactly who is responsible for costs and risks during transportation, making them a crucial part of international trade. In this complete guide, we’ll explore how EXW and FOB handling in China works, the differences between the two terms, and how to choose the right option for your imports.
What is EXW (Ex Works) in China
EXW, or “Ex Works,” means the seller fulfills their obligation by making the goods available at their premises (factory or warehouse). From that moment, the buyer is responsible for all costs and risks until the goods arrive at the final destination.
Key features of EXW handling in China:
Seller’s job ends when goods are ready for pickup.
Buyer arranges export clearance, inland trucking, and loading at the port.
Suitable for importers who have a trusted freight forwarder in China.
Example scenario:
If you buy from a Yiwu supplier under EXW terms, you (or your agent) arrange truck transportation to Ningbo Port, pay port handling fees, manage export clearance, and book sea freight.
What is FOB (Free on Board) in China
FOB, or “Free on Board,” means the seller is responsible for delivering the goods to the port of shipment and loading them on the vessel you choose. They also handle export customs clearance in China.
Key features of FOB handling in China:
Seller delivers goods to the named port and loads them on the ship.
Export formalities and terminal fees in China are the seller’s responsibility.
Buyer pays for the ocean freight, insurance, and import customs.
Example scenario:
If you order under FOB Shenzhen Yantian Port, the supplier delivers goods to the port, clears them for export, and loads them onto the vessel. You only take over responsibility after loading.
EXW vs FOB: Key Differences
Feature | EXW (Ex Works) | FOB (Free on Board) |
|---|---|---|
Export customs | Buyer responsibility | Seller responsibility |
Inland transport in China | Buyer responsibility | Seller responsibility |
Control over process | More control for buyer | Less control for buyer |
Common use case | Experienced importers with local agents | New importers needing seller support |
FOB, or “Free on Board,” means the seller is responsible for delivering the goods to the port of shipment and loading them on the vessel you choose. They also handle export customs clearance in China.
Key features of FOB handling in China:
Seller delivers goods to the named port and loads them on the ship.
Export formalities and terminal fees in China are the seller’s responsibility.
Buyer pays for the ocean freight, insurance, and import customs.
Example scenario:
If you order under FOB Shenzhen Yantian Port, the supplier delivers goods to the port, clears them for export, and loads them onto the vessel. You only take over responsibility after loading.
Costs in EXW and FOB Handling
EXW Handling Costs in China
Scenario: 1 x 20ft container from Yiwu to Los Angeles.
EXW Cost Structure:
Trucking to Ningbo Port: $300
Export clearance: $100
Port handling fees: $150
Ocean freight: $1,100
Total: $1,650
FOB Handling Costs in China
Inland transport & clearance (included by seller)
Ocean freight: $1,100
Total: $1,100 (but inland costs may be hidden in product price)
When to Choose EXW in China
Choose EXW if you:
Work with multiple suppliers and consolidate shipments.
Have a local freight forwarder (like SevenFOB).
Want transparency on each cost.
When to Choose FOB in China
Are importing for the first time.
Have one supplier handling the order.
Want the seller to deal with export formalities.
EXW Shipment Process
Order Confirmation – Buyer confirms product specs, quantity, and EXW price with supplier.
Arrange Pickup – Buyer’s freight forwarder schedules factory pickup.
Inland Transportation – Goods transported to the port (truck or rail).
Export Clearance – Buyer handles China customs export paperwork.
Port Handling & Loading – Goods are loaded into the container and onto the vessel.
Ocean Freight – Buyer arranges shipping to destination port.
FOB Shipment Process
Order Confirmation – FOB price includes inland transport to port and export clearance.
Supplier Delivery to Port – Supplier transports goods to designated port.
Customs Clearance – Supplier handles export paperwork in China.
Port Handling & Loading – Supplier loads goods onto buyer’s chosen vessel.
Ocean Freight – Buyer pays for and manages freight from port onwards.
Common Mistake to Avoid
Choosing EXW without a local agent – leads to delays and higher costs.
Accepting FOB without confirming port fees – some suppliers inflate these costs.
Mixing EXW and FOB in one shipment – creates confusion in cost responsibility.
Best Practices for Smooth EXW and FOB handling in China
Verify Supplier Capabilities – Not all suppliers are experienced in handling FOB documentation; confirm before placing an order.
Get a Clear Cost Breakdown – Request an itemized cost sheet to avoid hidden charges, especially for FOB shipments.
Inspect Before Shipping – Arrange product inspection before goods leave the factory to avoid surprises at arrival.
Confirm Export Port Availability – Some inland suppliers may face higher inland trucking costs to certain ports.
Work with a Trusted Freight Forwarder – For EXW, a local partner like SevenFOB ensures pickup, customs clearance, and loading are managed professionally.
Plan for Peak Seasons – Chinese New Year and September–October (pre-holiday rush) cause shipping delays; book early.
FAQ: EXW and FOB in China
Q: Can I switch from EXW to FOB after confirming the order?
Yes, but you must renegotiate the price and terms with your supplier.
Q: Which Chinese ports are most common for EXW and FOB?
Ningbo, Shenzhen Yantian, Qingdao, Xiamen, and Guangzhou Nansha.
Q: Does SevenFOB handle both terms?
Yes — we specialize in EXW and FOB handling in China, offering transparent pricing and reliable operations from pickup to port loading.
How SevenFOB Helps
At SevenFOB we provide:
Factory pickup & inland trucking.
Export clearance & port handling.
Container booking and tracking.
Tailored solutions for both EXW and FOB shipments.
Conclusion
Whether you choose EXW or FOB handling in China, the right choice depends on your experience, control preference, and budget.
EXW offers maximum control and transparency but requires solid logistics knowledge and reliable local partners.
FOB is simpler for new importers but can hide costs if not negotiated carefully.
By following the step-by-step process, applying best practices, and working with experienced partners like SevenFOB, you can ensure smooth, cost-effective, and timely shipments from China to any part of the world.