Direct comparison
EXW vs FOB: Who Loads, Clears Export, Bears Risk
EXW vs FOB under Incoterms 2020: who loads, who handles export formalities and where risk passes, plus when ICC points to FCA for containers.
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How do EXW (Ex Works), FOB (Free on Board) compare side by side?
The table below compares EXW (Ex Works), FOB (Free on Board) across 8 procurement-relevant dimensions, from modes of transport (icc rules list) through source.
Side-by-side comparison
| Dimension | EXW (Ex Works) | FOB (Free on Board) |
|---|---|---|
| Modes of transport (ICC rules list) | Any mode or modes of transport | Sea and inland waterway only; port-to-port |
| Named place in the contract | Named place of delivery | Named port of loading |
| Who loads the goods | The buyer, at the buyer's expense and risk, onto the vehicle the buyer sends | Delivery and risk transfer are tied to the goods being loaded onto the vessel at the port of shipment |
| Who handles export formalities | The buyer | Set by the FOB rule text; ICC states that each Incoterms rule says which party obtains any export license |
| Where risk passes | At the seller's premises, once the goods are ready to be loaded | Once the goods are loaded onto the vessel at the agreed port of shipment |
| Containerised or multimodal shipments | ICC encourages FCA instead of EXW where goods cross a border | ICC says FOB dates from when containers did not yet exist and calls FCA well suited to container and multimodal shipments |
| When to pick it | The buyer is prepared to load at the seller's premises and handle export formalities; ICC encourages FCA instead when goods cross a border | The shipment is port-to-port by sea or inland waterway; for containers or other modes ICC points to FCA |
| Source | ICC Academy, "Incoterms 2020: EXW or FCA"; ICC Incoterms rules list (read 2026-10-30) | ICC Academy, "Incoterms 2020: FCA or FOB"; ICC Incoterms rules list (read 2026-10-30) |
Common questions
Common questions about EXW (Ex Works) vs FOB (Free on Board)
What is the main difference between EXW and FOB?
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EXW is an any-mode rule where the buyer loads the goods at its own expense and risk, handles export formalities, and takes risk once the goods are ready to be loaded at the seller's premises. FOB is a sea and inland-waterway rule where delivery and the transfer of risk happen at the agreed port of shipment, once the goods are loaded onto the vessel (ICC Academy, read 2026-10-30).
EXW vs FCA vs FOB for medical imports?
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For an import of medical or laboratory equipment or consumables, the contract should name the Incoterms edition (Incoterms 2020) and the named place. EXW leaves loading and export formalities with the buyer. FCA suits any mode of transport, including multimodal, and the seller completes export formalities when delivering at its premises. FOB is only for maritime or inland waterway, port-to-port moves. ICC encourages FCA instead of EXW where goods cross a border and calls FCA well suited to container shipments (ICC Academy, read 2026-10-30).
What is the difference between FCA and FOB?
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FCA is suitable for any mode of transport, including multimodal shipments, and its place of delivery could be the seller's premises. FOB is to be used only for maritime or inland waterway transportation, with delivery and risk transfer at the port of shipment once goods are loaded onto the vessel (ICC Academy, read 2026-10-30).
Is FOB in an Incoterms contract the same as domestic FOB pricing?
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No. The Incoterms FOB rule is a sea and inland-waterway rule published by ICC. Domestic FOB origin or destination wording is a separate commercial convention; see the CASRAI comparison of FOB and delivered pricing in medical supply contracts.
Why does ICC encourage FCA instead of EXW for cross-border goods?
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Under EXW the buyer is responsible for loading and for export formalities. Under FCA at the seller's premises the seller loads the goods onto the buyer's vehicle and completes the export formalities. ICC encourages traders to consider FCA instead of EXW where goods cross a border (ICC Academy, read 2026-10-30).
