Ex Works — the seller only makes the goods ready at its premises; the buyer does everything else, including export clearance.

What is the difference between EXW and FOB?

Under EXW the buyer handles export and delivery to the port; under FOB the seller does, up to on board.

Who does export clearance under EXW?

The buyer — EXW puts export clearance and delivery to the port on the buyer.

Which is better for import to Ukraine?

Usually FOB — with EXW you would have to clear export abroad, which is hard without a local partner.

Should I use FOB for containers?

For containers FCA is often recommended instead of FOB, as risk passes at the terminal, not on board.

Does FOB include main freight?

No — under FOB the buyer pays the main freight and insurance from on board.

Can you help choose the term?

Yes — we advise on EXW, FOB or FCA and arrange delivery to Ukraine.

EXW vs FOB (Incoterms 2020): the difference and which to choose

Q: What is FOB?

Free On Board (sea only) — the seller clears export and loads the goods on board; the buyer takes over from there.

Reference7 min read

EXW and FOB are two Incoterms 2020 delivery terms with a very different split of duties. Under EXW almost everything is on the buyer; under FOB the seller takes on part. We break down EXW vs FOB in plain words and suggest what to choose for import to Ukraine.

EXW and FOB responsibility flow: under EXW the buyer does everything, under FOB the seller delivers on board — EXW = the buyer does everything from the seller door. FOB (sea) = the seller clears export and loads on board.

What EXW is

EXW (Ex Works) — the seller only makes the goods ready at its premises, and the buyer does everything else — export clearance, delivery to the port, loading, freight, insurance and import. It is the seller minimum obligation.

What FOB is

FOB (Free On Board) — for sea transport only: the seller clears export and loads the goods on board the vessel at the port of shipment. From there the main freight, insurance and import are on the buyer. Risk passes once the goods are on board.

Who is responsible for what

Stage	EXW	FOB
Export clearance	buyer	seller
Delivery to port	buyer	seller
Loading on board	buyer	seller
Main freight	buyer	buyer
Insurance	buyer	buyer
Import & delivery	buyer	buyer

The key difference

The difference is who brings the goods to the ship. Under EXW the buyer arranges export clearance, delivery to the port and loading in a foreign country — awkward and risky. Under FOB the seller takes that on, and the buyer steps in on board.

When to choose, and the container nuance

EXW suits the seller but burdens the buyer. FOB is more familiar and safer for the buyer. Note: for containers FCA is often recommended over FOB — risk passes when the goods are handed to the carrier at the terminal rather than “on board”, which better fits container logistics. On the terms in general see Incoterms explained, and on the duty-paid pair see DDP vs DAP.

EXW and FOB for import to Ukraine

For a Ukrainian importer EXW means you (through an agent) clear export and move the goods out of the seller country — hard without a local partner. FOB is easier: the seller delivers on board and you control freight, insurance and clearance in Ukraine. On insurance see cargo insurance.

Development prospects

Incoterms are updated about every 10 years, and paperwork is going digital: electronic contracts and documents, automatic cost calculation by delivery term. This simplifies choosing between EXW, FOB and FCA and makes estimates clearer.

Summary

EXW = the buyer does everything from the seller door. FOB = the seller delivers on board and the buyer carries on. For containers consider FCA. ABU JORJIA will help pick the term and arrange delivery to Ukraine — send a request.

Get a delivery quote