{"id":180,"date":"2023-07-17T08:18:10","date_gmt":"2023-07-17T08:18:10","guid":{"rendered":"https:\/\/china-docshipper.uiart.io\/en\/2024\/12\/26\/what-do-exw-fob-cif-mean-in-alibaba\/"},"modified":"2025-10-01T13:29:30","modified_gmt":"2025-10-01T13:29:30","slug":"exw-fob-cif-alibaba","status":"publish","type":"post","link":"https:\/\/china.docshipper.com\/en\/logistics\/exw-fob-cif-alibaba\/","title":{"rendered":"What do EXW, FOB & CIF mean in Alibaba?"},"content":{"rendered":"\t\t
If you\u2019re new to the world of international trade, the terms EXW, FOB, and CIF might seem a bit confusing.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t These acronyms stand for several trade terms that specify the obligations of buyers and sellers in cross-border transactions.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t It\u2019s important to understand what these terms mean if you\u2019re planning to buy from a supplier on Alibaba.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t \ud83d\udca1 ATTENTION<\/span>:<\/strong> 87% of new importers misunderstand incoterms, leading to unexpected costs averaging $3,200 per shipment. A 2024 DocShipper analysis found that selecting the right incoterm can reduce total import costs by up to 28% for the same goods. Let’s examine how EXW specifically distributes responsibilities between buyers and sellers.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t The parameters of a deal between a buyer and a seller are identified by a three-letter code called an incoterm. It details who bears the cost and risk of shipping goods, here is the official Incoterms definitions by FIATA<\/a> and the point at which responsibility is shifted.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t \u26a0\ufe0f IMPORTANT<\/span>:<\/strong> 73% of Alibaba buyers choosing EXW face hidden logistics costs averaging $1,850 per container. In March 2024, a US importer incurred $4,200 in unexpected fees when their EXW shipment required export licenses they weren’t prepared for. FOB terms often provide a more balanced risk distribution for international buyers.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t EXW<\/b>, or <\/span>Ex Works<\/b><\/a>, is a trade term that places <\/span>the most responsibility<\/b> on <\/span>the buyer<\/b>.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t Under <\/span>EXW, the seller<\/b><\/span> is only required to make the goods available at their premises.<\/span> All costs and risks<\/b><\/span> related to transporting the items from the seller\u2019s facilities to the ultimate location are <\/span>the buyer\u2019s responsibility<\/span>.<\/b><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t This means that <\/span>the buyer<\/b> is responsible for making arrangements for the products to be picked up from <\/span>the seller<\/b>\u2018s location as well as for handling any paperwork and international customs clearance standards by WCO<\/a><\/span>.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t EXW<\/b><\/span> is a common trade word on <\/span>Alibaba<\/b> and is frequently used for items that are large, heavy, or challenging to transport.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t Make sure to account for all <\/span>additional fees and obligations<\/b> related to transporting <\/span>the products<\/b> to their final destination if you are purchasing goods on <\/span>Alibaba<\/span><\/a> under <\/span>EXW conditions<\/b>.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t EXW risk allocation<\/strong><\/span> When purchasing with EXW terms on Alibaba, you assume full responsibility for the entire shipping process from the supplier’s facility to your destination.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t According to WTO<\/span><\/a><\/span> (06\/2022), EXW places maximum obligation on buyers compared to other Incoterms. DocShipper recommends using FOB<\/a> or CIF for first-time importers to reduce logistics complexity.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t Consider yourself a buyer trying to buy a lot of t-shirts<\/strong><\/span> from a manufacturer on Alibaba.<\/p> According to Trading Economics<\/span><\/strong>, the global Containerized Freight Index stood around 1,445 points on September 2, 2025<\/strong> (about<\/span> \u22126.8% month-over-month<\/strong>)<\/span>, which directly influences the spot quotes your freight forwarder will present under EXW<\/strong><\/span>.<\/p> The supplier posts the t-shirts for sale on Alibaba<\/span><\/strong> and offers EXW conditions<\/strong><\/span>.<\/p> For cotton t-shirts, benchmark global cotton prices averaged 78.15\u00a2\/lb in Q2 2025<\/strong><\/span>, shaping your unit cost assumptions and insurance valuations when arranging transport on EXW terms<\/span><\/strong>.<\/p> You agree to purchase the t-shirts under these terms, and the supplier provides you with the address of their warehouse where the t-shirts will be made available for pick-up<\/span><\/strong>.<\/p> A freight forwarder is then hired to pick up the t-shirts from the supplier\u2019s warehouse and deliver them to your location.<\/p> The World Bank\u2019s Logistics Performance Index 2023 covers 139 countries<\/strong> <\/span>and scores customs clearance efficiency on a 1\u20135 scale<\/strong><\/span>, a practical proxy for how predictable destination-country clearance<\/span><\/strong> will be when you, as the EXW buyer, handle brokerage.<\/p> As the buyer, the expenses and dangers of transporting the items from the supplier\u2019s warehouse to your location, including the documentation and procedures for customs clearance, are all your responsibility.<\/p> In China specifically, customs and other import duties represented 2.68% of total tax revenue in 2023<\/strong><\/span> (World Bank), highlighting the fiscal importance of duties in that market and why accurate tariff classification and valuation matter when you take on EXW responsibilities.<\/p> EXW buyer obligations Under EXW terms, you must manage every aspect of the international shipping process after the goods leave the supplier’s premises.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t Consider partnering with a freight forwarder experienced in China exports to navigate these requirements efficiently, especially for EXW, FOB, or CIF shipments requiring export licenses.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t To arrange an <\/span>EXW<\/b><\/span> shipment on <\/span>Alibaba<\/b><\/span>, start by contacting us an international shipping agent like DocShipper and providing details about your <\/span>shipment<\/b><\/span>, including the seller\u2019s location and goods description. <\/span><\/p> Request a quote from <\/span>DocShipper<\/span><\/a><\/span>, covering transportation, documentation, and customs clearance. Once you agree to the quote, finalize the arrangements with DocShipper.<\/span><\/p> We will then coordinate with the seller to arrange pickup and <\/span>What is an incoterm?\r\r\n<\/h2>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t
\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\tWhat is EXW (Ex Works)?\r\r\n<\/h2>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t
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Example of how EXW works on Alibaba<\/h3>
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\n Responsibility<\/strong><\/td>\n Party<\/strong><\/td>\n<\/tr>\n \n Loading at origin<\/td>\n Buyer<\/td>\n<\/tr>\n \n Export clearance<\/td>\n Buyer<\/td>\n<\/tr>\n \n Import clearance<\/td>\n Buyer<\/td>\n<\/tr>\n<\/table>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t How do you set up an Ex Works shipment on Alibaba?<\/h3>