Shipping straight from the factory in China with EXW

Full Member
simo2601
Posts: 25
Joined: 19 May 10
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15 Aug 12 04:28:40 am
Hi, I have been lucky enough to get a contact straight from the factory and cut out the middle men for a product I want. I have received a sample and it all checks out. Only problem is, they will only ship EXW, straight from the factory.

As I have been buying off wholesalers not factories, they usually organize the shipping for me, How do I go about getting the cheapest deal EXW? Is there a better option than getting DHL, UPS, EMS etc. to ship for me? The price I am getting is great and hopefully it will e worth a bit of extra effort.

Thanks, Simon

Full Member
fm1234
Posts: 836
Joined: 14 Dec 05
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15 Aug 12 10:04:59 pm
Are you sure you want to deal EXW? Do you have a reliable guy on the Chinese side? EXW means you are responsible for -all- aspects of not only importing the goods, but also of the export. Although different sellers will make different accomodations, technically under EXW terms the seller doesn't have to so much as shrink wrap a pallet -- it's up to you to arrange everything from the door of his warehouse to the floor of yours.

This could be a big part of why you're getting such a good price. It's not that you can't/shouldn't deal EXW; only that you need to make sure you understand what you're getting into, and above all else get a very spefically spelled-out contract from the seller regarding exactly what he will do, and what you will need to handle, with regards to export paperwork, load prep, etc. (because technically he's responsible for none of it, you need to find out if he's willing to include any of it so that you can find an appropriate agent to handle that stuff on the Chinese end of the transaction. Of course, if you have a reliable guy on that side who can handle that stuff for you, then this is less of a concern.)


Frank


"Failure is not when you fall down. Failure is when you don't get back up."

--J.J. Luna
Full Member
simo2601
Posts: 25
Joined: 19 May 10
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17 Aug 12 01:56:43 pm
Hey Frank, thanks for your input. To be honest, all I have is a sample and a bunch of emails with plenty of smiley faces in them :) ;P ;)

I am still keen to pursue the deal, but I will be phoning or skyping the factory to nut out all the details first. I like to take a 'fake it til you make it' approach and pretend to know what I am talking about with these things, but maybe I will fess up to the supplier and let them know I am not 100% sure how the EXW sale works

Simon

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richellemonfort
Posts: 5220
Joined: 20 Oct 08
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20 Aug 12 12:25:02 am
I have to agree with Frank before to go into this deal it would be best to know everything that you need to know. The distance and language alone are factors to consider so it would be best to get everything in black and white :)

As for the best shipping option, your best bet would be your manufacturer as they would most probably have certain recommendations for you.

All the best!


Richelle

Customer Support Manager
SaleHoo Group Limited
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Full Member
fm1234
Posts: 836
Joined: 14 Dec 05
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23 Aug 12 01:25:26 pm
I understand what you mean, Simon. Link hidden: Login to view might be of use/interest to you; it lists and concisely explains the various types of freight arrangements and other business terms used in export/import.


Frank


"Failure is not when you fall down. Failure is when you don't get back up."

--J.J. Luna
Full Member
simo2601
Posts: 25
Joined: 19 May 10
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1 Sep 12 04:43:00 am
Frank, that page has gone straight to my favorites, thanks very much

Free Member
importexportcoach
Posts: 34
Joined: 08 Sep 12
Karma: 
17 Sep 12 08:20:14 am
Hi, I have been lucky enough to get a contact straight from the factory and cut out the middle men for a product I want. I have received a sample and it all checks out. Only problem is, they will only ship EXW, straight from the factory.

As I have been buying off wholesalers not factories, they usually organize the shipping for me, How do I go about getting the cheapest deal EXW? Is there a better option than getting DHL, UPS, EMS etc. to ship for me? The price I am getting is great and hopefully it will e worth a bit of extra effort.

Thanks, Simon



A good shipping agent or freight forwarder will come in handy here, as let me tell you from experience that it's a major headache trying to do this yourself.

Just my two cents

Personally I find dhl to be pretty expensive



Alex C Ryan
Managing Director
Import Export Exposed
startimportingnow.com.au


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Free Member
importexportcoach
Posts: 34
Joined: 08 Sep 12
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20 Dec 12 05:01:19 am
Hi!

The Incoterm trade term "Ex-Works" (EXW), also being called ex-factory, means the goods are available at seller's or exporter's premises. The seller or exporter can minimize their risk by making the goods available only at their own premises. The buyer or importer must load the goods then arranges and pays for transport, customs clearance and insurance. As the buyer has to handle and pay for all transportation costs including the inland portion in the country of origin, and assumed all risks in the process, it is not an ideal trade option for the buyers or importers who are not familiar with business practices have no connections with any shipping agents or freight forwarders in the country of origin like China in this case.

On the other hand, the ex-work trade could benefit the buyer or importer if the buyer has their own shipping agent situated in China who can offer the buyer some types of specially negotiated shipping rates. It is conceivable that most sellers or exporters in China to certain degree tend to add some extra amount to the actual CFR or CIF costs in order to cover any unexpected expenses.

The buyer must arrange and pay for the transport having taken delivery of the goods. The buyer is responsible for the goods, and anything that happens to them having taken delivery of them. EXW means that the buyer carries all the risk and bears the entire cost for the movement of the goods once they are made available at the seller's premises.

Hope this helps!


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