EXW (Ex Works) represents the most basic delivery term in international trade. Under EXW arrangements, the seller's only obligation is to make goods available at their premises—typically a factory or warehouse. From that point forward, all risks, costs, and responsibilities transfer to the buyer [1].
For Southeast Asian businesses sourcing electric heaters through Alibaba.com, EXW terms can unlock significant cost advantages. However, this pricing model demands comprehensive logistics capabilities that many first-time importers underestimate.
EXW vs FOB vs CIF: Responsibility Breakdown for Electric Heater Buyers
| Responsibility | EXW (Ex Works) | FOB (Free on Board) | CIF (Cost, Insurance, Freight) |
|---|---|---|---|
| Factory loading | Buyer arranges & pays | Seller responsibility | Seller responsibility |
| Export clearance | Buyer handles | Seller handles | Seller handles |
| Inland transport to port | Buyer arranges | Seller arranges | Seller arranges |
| Ocean freight | Buyer books & pays | Buyer books & pays | Seller books & pays |
| Cargo insurance | Buyer's option | Buyer's option | Seller provides minimum coverage |
| Import clearance | Buyer handles | Buyer handles | Buyer handles |
| Price premium | Lowest (factory direct) | Moderate (+8-15%) | Highest (+15-25%) |

