What the term actually covers, who files the export declaration, and how to compare two EXW quotes without getting fooled by the unit price.
EXW (Ex Works) means the seller's only obligation is to make the goods available, packed, at the factory. Everything after that — loading, inland transport, export declaration, ocean freight, insurance, import clearance and delivery — is the buyer's side. Under Incoterms 2020 it is the term with the smallest obligation on the seller.
Three reasons, and they all work in the buyer's favour if you understand them.
Strictly under EXW, export clearance is the buyer's obligation. In practice many overseas buyers have no Chinese export entity and cannot file the declaration themselves. This is where most EXW deals stall.
The practical solution is simple: the buyer appoints a forwarder, and that forwarder files the export declaration in the buyer's name and bills the cost at actual. Nearly every freight forwarder working the China lanes does this daily.
| Item | EXW Foshan | FOB Shenzhen / Guangzhou |
|---|---|---|
| Who arranges inland trucking | Buyer | Seller |
| Who files export declaration | Buyer (or buyer's forwarder) | Seller |
| Who pays port charges | Buyer | Seller |
| Price transparency | High — goods only | Medium — goods plus local costs |
| Best for | Buyers with an existing forwarder; small LCL shipments; price comparison | Buyers who want one number up to the ship's rail |
For a full container the difference between the two is usually small — the inland and port costs are a fixed block that either side pays. For a small LCL shipment EXW is often better, because the local charges are fixed and a factory that quotes FOB has to spread them over few pieces, which inflates the unit price.
Ask your forwarder for these as a single quote against the carton count and total CBM of your order, not against the number of chairs. Carton counts differ a lot between models even at the same quantity.
Do not compare the unit price alone. Compare the cost per chair landed. That means:
A chair that is USD 2 cheaper but loads 40% fewer per container can easily be the more expensive chair.
Typical terms with a Chinese factory: T/T, 30% deposit, 70% before shipment. Under EXW you also need to be clear about when title passes — at the factory gate, when the forwarder collects. Make sure your forwarder issues a receipt at pickup, because that document is your proof of collection.
In those cases ask for a forwarder introduction first — most buyers find that after one shipment they prefer EXW, because they can see where every dollar goes.
Is EXW cheaper than FOB? The goods price is lower because it excludes local costs, but you pay those costs separately. Total landed cost is usually close; EXW is more transparent.
Who pays export tax under EXW? Export VAT refund is claimed by the seller in China. Our quoted EXW prices exclude VAT and we handle the refund on our side.
Can I combine EXW with Alibaba Trade Assurance? Yes. The order can run through our Alibaba store for platform protection while the terms remain EXW Foshan.