Guide overview

Compare where delivery occurs, who handles export clearance and when risk transfers under EXW, FCA and FOB for an international purchase.

EXW, FCA and FOB allocate delivery, costs and risk at different points. EXW places most transport coordination with the buyer, FCA covers delivery to a nominated carrier or place, and FOB covers delivery on board a vessel.

The current ICC rules are Incoterms® 2020. The rule and exact named place or port should appear together in the quotation and contract.

EXW vs FCA vs FOB at a glance

ItemEXWFCAFOB
Full nameEx WorksFree CarrierFree On Board
Seller deliversAt the named premises or placeTo the carrier at the named placeOn board the vessel at the named port
Export clearanceBuyer under the ruleSellerSeller
Main transportBuyerBuyerBuyer
Risk transfersAt EXW deliveryAt the FCA delivery pointWhen goods are on board
Transport modeAny modeAny modeSea or inland waterway
Container shipmentsPossible, with practical limitationsDesigned for carrier or terminal handoverUse when delivery is on board

The ICC's Incoterms® 2020 checklist identifies FCA for container or multimodal movements and FOB for sea or inland-waterway delivery on board a vessel.

What is EXW?

EXW — Ex Works means the seller makes the goods available at the named premises or another named place. The buyer takes on the pickup, export arrangements and onward transport under the rule.

EXW may suit a buyer with reliable local logistics support and the ability to manage export formalities. For an international order, check whether the buyer can practically complete export clearance and obtain the documents needed for import and tax records.

What is FCA?

FCA — Free Carrier means the seller delivers the goods to the buyer's nominated carrier or other party at the agreed place. The seller handles export clearance.

The named place matters. Delivery at the seller's premises differs from delivery at a carrier terminal. FCA is suitable for containerised and multimodal shipments because risk can transfer when the goods are handed to the carrier before vessel loading.

What is FOB?

FOB — Free On Board means the seller delivers the goods on board the buyer's nominated vessel at the named port of shipment. The buyer arranges the main ocean carriage, and risk transfers when the goods are on board.

FOB is for sea or inland-waterway transport. When goods are handed to a carrier at an inland depot or container terminal before loading, FCA should be considered.

Example: 2,000 air fryers

StructureTypical order flow
EXWBuyer arranges pickup, export process, main transport, import clearance and final delivery
FCASeller clears export and delivers to the agreed carrier or place; buyer arranges main transport
FOBSeller clears export and delivers on board at the named port; buyer arranges main ocean transport

For each structure, confirm the exact charges and documents rather than relying only on the three-letter rule.

Which Incoterm should a buyer use?

The appropriate rule depends on transport mode, handover point, export arrangements and each party's logistics capability.

  • Consider FCA for containers, air freight, courier movements and multimodal transport where delivery occurs to a carrier or terminal.
  • Consider FOB for sea or inland-waterway shipments where the seller can place the goods on board the nominated vessel.
  • Consider EXW when the buyer can manage pickup and export arrangements from the named place.

If you are still defining the product and supplier, begin with the small-appliance sourcing guide and supplier verification checklist.

Compare the complete transaction cost

SupplierTermUSD product price
Supplier AEXW$18.00 per unit
Supplier BFOB$18.60 per unit

The EXW offer is not automatically cheaper. Compare product price, pickup, export charges, origin handling, main freight, insurance, destination charges, duties, taxes and final delivery.

Buyer checklist

  • ☐ Exact Incoterm and Incoterms® 2020 stated
  • ☐ Named place or port written in full
  • ☐ Delivery and risk-transfer point understood
  • ☐ Export-clearance responsibility confirmed
  • ☐ Carrier booking and main transport confirmed
  • ☐ Origin and destination charges listed
  • ☐ Insurance responsibility considered
  • ☐ Import clearance, duties and taxes confirmed
  • ☐ Required transport and customs documents agreed

Frequently asked questions

Is FOB cheaper than EXW?

Not necessarily. An EXW quote may show a lower product price while leaving pickup, export and origin costs with the buyer. Compare the complete landed-cost structure for the same shipment.

Is FCA better than FOB for containers?

FCA is designed for delivery to a carrier or terminal and is commonly suitable for containerised or multimodal transport. FOB applies when the seller delivers the goods on board a vessel.

What is the difference between EXW and FOB?

EXW delivery occurs when goods are made available at the named place, with the buyer managing most transport tasks. FOB delivery occurs when the seller places the goods on board the vessel at the named port.

What is the difference between FCA and FOB?

FCA can transfer delivery and risk when goods are handed to the carrier at an agreed inland or terminal location. FOB transfers risk only when goods are on board the vessel.

Which Incoterm should I use when importing from China?

Select the rule that matches the real handover and transport method. FCA is often considered for containers and multimodal shipments, FOB for on-board sea delivery, and EXW when the buyer can manage pickup and export arrangements.

Request a comparable export quotation

Send Cheergrow your product, quantity, destination and preferred transport structure. The quotation can then state a clear USD price, Incoterm and named place.