EXW vs FOB
Where EXW and FOB differ in who pays, where risk passes and who insures — two Incoterms® 2020 rules compared from the same data as the cost matrix.
Key differences
- Transport mode — EXW: any mode of transport; FOB: sea and inland waterway only.
- Risk passes — EXW: at the seller's premises; FOB: on board the ship at the port of shipment.
- Loading at origin — EXW: buyer; FOB: seller.
- Export clearance — EXW: buyer; FOB: seller.
- Pre-carriage — EXW: buyer; FOB: seller.
- Insurance — EXW: buyer; FOB: depends.
Side by side
| Item | EXW | FOB |
|---|---|---|
| Transport mode | Any mode of transport | Sea and inland waterway only |
| Risk passes | At the seller's premises | On board the ship at the port of shipment |
| Packaging | Seller | Seller |
| Loading at origin (differs) | Buyer | Seller |
| Export clearance (differs) | Buyer | Seller |
| Pre-carriage (differs) | Buyer | Seller |
| Main carriage | Buyer | Buyer |
| Insurance (differs) | Buyer | Depends |
| Unloading at destination | Buyer | Buyer |
| Import clearance | Buyer | Buyer |
| Import duties | Buyer | Buyer |
| On-carriage | Buyer | Buyer |
4 of 10 cost items differ (rows in bold).
Which one fits your shipment?
Open the rule pages for the full cost table and notes: EXW and FOB. Or answer five questions in the rule chooser, which explains why each rule fits or does not.
Sources
Checked on .
- Export Development Canada — edc.ca
- Netherlands Chamber of Commerce (KVK) — kvk.nl
- ICC Academy (International Chamber of Commerce) — academy.iccwbo.org
- US International Trade Administration — trade.gov
- UK Department for Business and Trade (business.gov.uk) — business.gov.uk
- Maersk (chart by Pilot Freight Services) — delivers.maersk.comsecondary
- Export Development Canada — edc.ca
- ICC Academy (International Chamber of Commerce) — academy.iccwbo.org