EXW puts China pickup and export clearance on you; FOB puts export clearance on the seller and only differs on the China domestic leg. For most buyers FOB is simpler — EXW only wins if you already control cheap China logistics.
EXW vs FOB, side by side
| EXW (Ex Works) | FOB (Free On Board) | |
|---|---|---|
| China domestic pickup | You pay & arrange | Seller arranges to port |
| Export clearance | You (technically) | Seller |
| Main international freight | You | You (from port) |
| Risk transfers… | At supplier’s premises | On board vessel at port |
| Best when | You have your own China logistics | Most buyers — cleaner handoff |
The frequent error: assuming FOB clearance is the buyer’s. Under FOB the seller handles export clearance; you take over only once goods are on the vessel.
Who pays the China domestic freight
Under EXW you book and pay the truck from the factory to the port (plus export filing). Under FOB the seller covers that leg and the export paperwork, then you take the main freight from the port onward. If you don’t have a cheap China trucking contact, EXW’s “savings” disappear in the pickup cost.
Which should you pick
- New to importing, no China logistics → FOB (or DDP if you want zero paperwork).
- You already use a forwarder with China pickup → EXW can shave the domestic leg.
- Either way, the freight math still hinges on how the chargeable weight is calculated.
And when you’re weighing FOB against letting a forwarder run the whole thing, see how a forwarder actually quotes the China leg. For the full cost picture, our main Alibaba shipping cost guide ties it together.
Edge cases: when EXW is actually better (and when it isn’t)
- EXW wins only if you control cheap China logistics. You pay factory pickup, export filing, and port handling. If you already have a forwarder with inexpensive China pickup, EXW can shave the domestic leg versus FOB’s bundled price.
- EXW export clearance is awkward. Technically the buyer exports, but most buyers can’t file Chinese export customs directly — in practice your forwarder does it. Confirm who actually files; “EXW” on paper often means “your forwarder handles export.”
- FOB assumes the seller is export-licensed. If a small factory isn’t, their “FOB export clearance” is nominal and your forwarder ends up doing it anyway — ask upfront.
Hidden cost under EXW you don’t see in FOB
Under FOB the seller covers China domestic trucking + export clearance in the price. Under EXW those become your line items: factory pickup, export filing fee, and port handling. EXW’s headline “saving” can vanish in those three charges if you don’t have a cheap China contact.
Template: ask the supplier which Incoterm + license:
“Hi [Supplier], can you ship under FOB, and do you hold the export license to handle clearance yourself? If not, please quote EXW and list the pickup + export filing cost separately so I can compare. Thanks, [Your Name]”
Transparency note: The EXW/FOB comparison follows Incoterms 2020 and was verified by the author. An AI model assisted with outlining and language. Confirm the exact division of export filing responsibilities with your broker, as local practice can vary.
