Import costs · 3 min read
EXW vs FOB: compare U.S. import quotes on the same basis
An EXW price and an FOB price cover different delivery obligations. Bring both to the same named port or destination, then determine customs value separately. The cheaper invoice is not necessarily the cheaper import.
Start with the delivery point
Under EXW, delivery occurs when goods are placed at the buyer’s disposal at the named place, normally not loaded. Under FOB, the seller delivers on board the vessel at the named shipment port and handles export clearance. FOB is for sea or inland-waterway transport; it is not an air-freight term. For container-terminal handovers, discuss FCA rather than treating every sea shipment as FOB.
Put the named place and Incoterms version on both quotes. Ask who pays loading, origin trucking, export paperwork and port handling. Record the answer once per line; “included” is useful only when it names the same service and endpoint on both offers.
A quote-normalization example
| Cost to the same on-board point | EXW option (USD) | FOB option (USD) |
|---|---|---|
| Goods quote | 8,200 | 8,950 |
| Loading and origin transport | 420 | Included |
| Export and port services | 410 | Included |
| Comparable subtotal | 9,030 | 8,950 |
With these invented assumptions, the FOB option is USD 80 cheaper at the same delivery point, even though its quoted price is USD 750 higher. Add the same onward services to both columns. If a service is unknown, leave it unknown and obtain a quote; do not insert zero to make the comparison look complete.
Prepare the customs-value input separately
Neither normalized subtotal is automatically the U.S. customs value. Transaction value starts from the price paid or payable and applicable adjustments. International freight and insurance exclusions require support; foreign inland freight has its own conditions. Keep a separate valuation worksheet and use the calculator’s Customs value help before entering the goods total.
- Choose one product classification, origin and entry date for the comparison.
- Enter the total goods value covered by the estimate, not the price of one unit.
- Fill the required quantity fields, then press Calculate once.
Assumptions and limits
Assumptions
- Illustrative sea shipment with identical goods, quantity and delivery date.
- All amounts below are invented USD budgets, not supplier prices or tariff rates.
Costs and duties not included
- The worksheet is not a customs valuation determination.
- Duty, insurance, destination charges and inland delivery still need separate estimates.
Prepare your own estimate
Use your shipment details to open the existing calculator.
Use digits and a dot, with up to two decimals (for example, 1200.50).
Opening the calculator prepares these inputs. Only pressing Calculate uses a calculation from your plan.
You will need to select the correct HTS code in the calculator before it can estimate duties.
Common questions
Does FOB mean my U.S. import duties are paid?
No. FOB concerns delivery at the shipment port; U.S. import clearance is a separate part of the transaction.
Should I put the EXW or FOB quote directly into the calculator?
Only after determining the applicable customs value. Keep purchase-cost comparison and customs valuation as separate worksheets.
Sources
- EXW and DDP explained
International Chamber of Commerce · Checked
- FOB and FAS explained
International Chamber of Commerce · Checked
- 19 CFR 152.103: transaction value
CBP / eCFR · Checked
- 19 CFR 141.86: contents of invoices
CBP / eCFR · Checked
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Compare two suppliers by import cost, not unit price alone
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