Pricing of export products on EXW (Ex-Works) basis via Sea freight

How to determine the appropriate price for your product based on EXW (Ex-Works) basis via Sea freight

Shipping Containers
EXW (Ex-Works) basis via Sea freight

new search

Pricing in exports should be done by considering the costs which are depending upon the delivery terms in your contract with your customer.

For the EXW (Ex-Works) basis via Sea freight, the following additional costs should be considered in the pricing of your export product.

  • Packing of Goods: (By Seller (Terms should be confirmed in contract))
    Costs for securely packaging the products to ensure their protection during transit are the seller's responsibility. However, packaging should comply with the requirements specified in the contract. For instance, packaging for sea freight differs from that needed for air freight. Additionally, if wooden packaging or crates are used, the materials must be fumigated or heat treated according to ISPM-15 standards, along with a valid certificate enclosed alongwith shipping documents. This is to prevent the international transport of diseases and insects that could negatively impact the plants and wildlife of the destination country.
    There are international standards for multi-level packaging based on the type of goods, whether they are consumer goods, corrosion-prone capital equipment, or dangerous goods.
    For example, as a consumer goods supplier, it's not enough to have robust export packing for the outer layer. The intermediate packaging used for boxes traveling from distributors to retail stores, as well as the inner packaging of the actual product, must also comply with the labeling and packaging requirements of the destination country. This includes considerations like child-resistant packaging, language of the labels, statutory warnings, and other regulations.
  • Loading of the Goods in the vehicle: (By Seller (Terms should be confirmed in contract))
    Cost of loading the goods onto the vehicle at the factory or source warehouse.
    Under EXW (Ex Works) terms, the seller has no control over where the buyer will take the goods after delivery. If your consignment is heavy and you are prepared to load it onto the buyer's truck using forklifts, complications can arise if the buyer arrives with an open-top container intended for other heavy goods to be sent together. In this case, you would need to hire a crane to fulfill your loading obligation. To avoid such issues, it's advisable to clarify the loading terms in the purchase contract.
    • Buyer's responsibilities
  • Customs Clearance: (By Buyer)
  • Inland Transit towards the destination in India: (By Buyer)
  • Inland Transport to the port in India: (By Buyer)
  • Indian port handling charges: (By Buyer)
  • Freight charges to destination port: (By Buyer)
  • Transit Insurance: (By Buyer)
  • Destination Port charges: (By Buyer)
  • Destination Customs clearance: (By Buyer)
  • Destination Tariff (Customs Duty): (By Buyer)
  • Inland Transit towards Final Destination: (By Buyer)
  • Unloading charges at Final Destination: (By Buyer)

Even though the information mentioned above can act as a guideline, you should make sure to consult your shipping agent and export consultants before making the quotation of your product or before entering into any contract.

Sub-articles based on inco-terms and mode of transport
Articles