What is the difference between FOB and Ex-works?
With ex works, the seller is not obligated to load the goods on the buyer’s designated method of transport. Free on board means the seller retains ownership and responsibility for the goods until they are loaded ‘on board’ a shipping vessel. Once on the ship, all liability transfers to the buyer.
What is the difference between Ex-works and CIF?
CIF or CRF import freight terms are more expensive than Ex Works or FOB. There will be a cost for arranging the shipping that the seller has to pass on. When you use Ex Works or FOB, all or most of the shipping costs is paid for by you, and avoids any costs from the seller being involved.
What does Ex-works UK mean?
“Ex-works” means that the seller fulfils their obligation when the goods are made available at their premises for collection. The seller is responsible for ensuring that the goods are available for pickup at the place and time agreed with the buyer.
Who is the exporter in Ex-works?
In an EXW shipment, the buyer is responsible for all transportation charges and must collect the goods from the seller. In a FOB shipment, the seller is responsible for exporting and paying the costs to load the cargo onto the vessel.
Which is better CFR or FOB?
Free on Board means the seller is responsible for the product only until it is loaded on board a shipping a vessel, at which point the buyer is responsible. With CFR, the seller must arrange and pay all costs to ship the product to a destination port, at which point the buyer becomes responsible.
Is FOB the same as landed cost?
What is the difference between FOB and Landed pricing? FOB pricing includes the cost of the product, export packaging, delivery to the shipper, fumigation, documentation and packing into the container. Landed pricing includes everything from delivery to client, excluding local duties and taxes.
What DAP means?
How Delivered-at-Place (DAP) Works. Delivered-at-place simply means that the seller takes on all the risks and costs of delivering goods to an agreed-upon location. This means the seller is responsible for everything, including packaging, documentation, export approval, loading charges, and ultimate delivery.
What does DDP mean?
Delivered duty paid
Delivered duty paid (DDP) is a delivery agreement whereby the seller assumes all of the responsibility, risk, and costs associated with transporting goods until the buyer receives or transfers them at the destination port.
What is FOB and CFR?
FOB is the abbreviation for “Free on Board,” and CFR stands for “Cost and Freight.” In the first term, the seller delivers goods on a specific board. All losses when goods are loading on the board are by the buyer. And in the second term, the seller delivers goods on the board.