How to Get Products from China with EXW Shipping

Presou Logistics Freight Services 03 Jan 2025

How to Get Products from China with EXW Shipping

Importing goods directly from China can be a lucrative opportunity for businesses looking to source high-quality products at competitive prices. One common shipping term that you might encounter when dealing with Chinese suppliers is EXW (Ex Works). Understanding how to navigate this shipping method can help streamline your import process and ensure a smoother delivery of your products. In this comprehensive guide, we will explore the ins and outs of obtaining goods from China using EXW shipping.

You may also be interested in: The 11 common international trade logistics terms

Section 1: Understanding EXW Shipping

What is EXW Shipping?

EXW, or Ex Works, is an international trade term where the seller makes the goods available at their premises. The buyer is responsible for all transportation costs, risks, and customs clearance. This shipping method gives buyers more control over the logistics of their imports but requires thorough planning and coordination.

Benefits of EXW Shipping

Greater control over transportation and logistics
Potential cost savings by arranging your own shipping
Direct communication with local suppliers

Section 2: Steps to Obtain Products via EXW Shipping

Step 1: Finding Reliable Suppliers

Research and vet potential suppliers to ensure they are reputable and can fulfill your product requirements. Platforms like Alibaba and Global Sources can be useful for finding manufacturers in China.

Step 2: Negotiating Terms

Discuss pricing, product specifications, and shipping details with your chosen supplier. Clearly outline the terms of the EXW agreement to avoid misunderstandings.

Step 3: Arranging Transportation

Coordinate with a freight forwarder or logistics company to handle the transportation of your goods from the supplier's location in China to your desired destination. Consider factors like shipping time, costs, and customs requirements.

Section 3: Ensuring a Smooth Delivery Process

Customs Clearance and Documentation

Prepare all necessary documentation, including invoices, packing lists, and import licenses, to facilitate a smooth customs clearance process. Work closely with your logistics provider to ensure compliance with regulations.

Quality Control and Inspection

Prioritize quality control measures to verify that the products meet your specifications. Consider hiring a third-party inspection service to conduct checks before shipment.

Handling Unexpected Issues

Be prepared to address any unexpected challenges that may arise during the shipping process, such as delays, damaged goods, or customs issues. Maintain open communication with your supplier and logistics partner to resolve issues promptly.

Comparison of EXW with Other Trade Terms

Compared with other common trade terms, EXW has the lowest seller responsibility, mainly due to the following differences:

FOB (Free On Board): Under FOB, the seller needs to transport the goods to the port of shipment and load them onto the ship, and the risk is transferred when the goods cross the ship’s rail. Under EXW, the seller is only responsible for delivering the goods to the buyer’s designated location, and the transportation risks and costs are entirely borne by the buyer.
CIF (Cost, Insurance, and Freight): Under CIF, the seller needs to bear the freight and insurance costs of the goods to the destination port; while under EXW, the buyer needs to bear all transportation and insurance costs.
DDP (Delivered Duty Paid): The DDP clause requires the seller to be responsible for all costs until the goods are delivered to the buyer’s designated location and bear all tariffs and fees at the destination. Compared with EXW, DDP requires the seller to bear much more responsibilities.

Key Takeaways