EXW shipping confusion

[Ricky3366]

Hi everyone.

Completely confused.

I'm looking at an order from China for mens clothing, 25kg total weight. My supplier has offered me EXW which she says is $130 with Fed Ex, 7 day shipping time.

I've looked into EXW, as never heard it before (i've heard of FOB and understand that i think).

So, researching EXW, they basically pack it up and make ready for collection and I have to organise everything from there and am responsible for everything.

So why is she saying it's $130 and naming a courier company with a delivery time? Or would I be hit with a huge bill by FED Ex on arrival in the UK?

Looked into shipping agents/freight forwarders, and I've asked Woodland Global (who i believe is on here) for a quote for this EXW shipment and they are quoting £300.

So my question, what is the $130 for to my supplier? (I would ask her but she is now off for CNY)

Any help or advice really appreciated, its a little confusing (and yes its my first time)

Ricky.

 

[Mike Godwin]

Ex works is one of many 'INCOTERMS' used in international shipping. An incoterm sets out who is responsible for what part of the transportation between the buyer & seller. If you have an ex works price for the goods then that means you must arrange and pay for all the shipping from your suppliers factory to your door + cost of the goods. If you have an fob price then you will only be responsible for the shipping charges to your door from the fob point which is usually a port or airport + cost of the goods. The supplier will pay the costs to get the goods to the fob point. Without knowing more detail I can't answer your issue specifically regarding the $130 and £300.

However, my guess is that you have agreed a price with your supplier for the 25kgs of goods yes? Then your supplier is saying that if you want them to ship to you, it will cost you an extra $130 via Fedex? on top of the price agreed for the goods? A price of £300 for 25kgs (unless the goods are volumous) appears high but Woodlands are a very reputable company so perhaps there's been a mis-communucation somewhere along the way? As I said without all the details I can't give you specific answers but happy to do so if you want to discuss further.............

 

[Ricky3366]

Thanks for taking time to reply Mike, appreciated.

Yes, price agreed for goods, and the delivery on top, she stated $130 for Fed Ex and said it would take 7 days to arrive and asked for my address. (Though that seemed too good to be true from China to me).

Yet on the order form on completion, it stated 'EXW - You need to pick up the goods from the nominated factory place, and arrange shipment by yourself, also afford all the fees and risks that may occur during delivery.'

I have messaged her through Alibaba to confirm, but its the start of CNY.

 

[Ricky3366]

The goods are t-shirts, and only 100 pieces

 

[Mike Godwin]

No problem Ricky. Glad I can be of some help. Yes, technically if you are buying the goods and the seller is paying all the transport, then the terms of sale/shipping are not ex works but DAP (door to door with the buyer only paying uk duty & taxes) or DDP (door to door with the seller paying everything including the uk duty & taxes). Good luck and if you want a copy of the latest incoterms just let me know where to send them. It may help you going forward...

 

[MOIC]

If it’s being shipped by FedEx then it will be a door to door shipment.

The only costs you will incur will be Import Duty & VAT.

 

[ystong]

Well, EXW is a term of international trading quotation which used to do a lot for the manufactor. It means the manufactory will not responsiable for any freight charges (like, goods transport from the factory to the port, declare from the Customs domestic, etc ). Your supplier advise you to use FEDEX is fine because Fexdex is Express services. So, normally the Courier will pick up the goods at the manufactory, and your supplier have to make the courier the invoices for you after parcel arrived to make Customs clearance. and you have to pay the duty & vat of your country before delivery.
As my experiences US$130 is a good deal. Good luck!