EX Works vs FOB: The Ultimate Guide to International Trade Terms for Importers and Exporters
EX Works or FOB terms used in the transaction of international trade can have a substantial influence in the exchange of costs, risks and duties involved in the transaction. EXW puts most of the burden on buyers where they have full control of the supply chain and FOB is more balanced where there is sharing of responsibilities. It is implemented successfully when one understands the legal implications, well documented, has coverage insurance and appropriate partners in terms of experience in logistics. Advances on modern technology, as well as, changing trade practices, are shown to have remained external factors in determining the application of these traditional terms in the contemporary and more global trade and commerce.