Difference between EXW and FOB priceukiosks
Difference between EXW and FOB price
Unique is a company to do all kind of kiosks,including food kiosks,salon kiosks,cosmetic display showcase,jewelry display showcase,retail store furnitures,food carts,exhibitions,etc.Thet mainly do the EXW price,but,they have long term cooperated freight forwarder,so,Fob price is also provided.
Ex-factory price means, the selling cost of goods at seller’s factory. All other expenses from the factory of seller to buyer’s place have to be borne by the buyer. So the responsibility of getting goods from the seller’s factory is with the buyer. Here the buyer appoints a shipping and freight forwarding company to collect goods from the seller’s factory to the buyers place including insurance of goods. A sample for the EXW,You are a Machinery seller situated in a place near Mumbai, India. The buyer is situated in New York. You are the seller of goods and you have contracted with the buyer and agreed to sell the goods on ex-factory price of USD 5000. Here the selling cost of goods is USD 5000 ex-factory. As I have explained, all further cost to reach the goods to the buyers place has to be met by the buyer. As per the instruction given by the buyer, freight forwarder contact his counterpart in Mumbai and arranges to pick up goods from seller’s factory. Seller delivers goods to freight forwarder after confirming the authenticity of the freight forwarder through his buyer. All expenses of freight forwarder will be paid by the buyer. Buyer arrange to insure the goods and pay the cost of insurance.
What is FOB price and how FOB terms works? FOB means Freight on Board or Free On Board. If terms of delivery of a transaction is on FOB, the cost of movement of goods on board of Airlines or on board of ship is borne by the seller.
How FOB works :
I will explain FOB terms of delivery with a simple example. You are a Machinery seller situated near Mumbai, India. The buyer is situated in a place near New York. You are< style="font-size:16px;font-family:Tahoma;"> the seller of goods and you have contracted with the buyer and agreed to sell the goods on FOB, Mumbai price of USD 5300. Here the selling cost of goods is USD 5300 FOB Mumbai. So the seller meets all expenses to carry the goods to Mumbai port and meet all expenses including customs clearance in Mumbai to get the goods on board of Airlines or Ship. As I have explained, all further cost up to buyer’s place has to be met by the buyer. The buyer nominates shipping company or airlines and seller ship the goods as per buyer’s advice. The buyer pays the cost of freight to the shipping company or airlines. Buyer arrange to insure the goods and pay the cost of insurance.
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