{"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
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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

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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

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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

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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
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\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

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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

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What 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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\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

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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

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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

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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

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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

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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

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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

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