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The ex-factory price is a price at which the seller agrees to sell goods from his factory, and the buyer agrees to pay all the shipment costs to make goods reach his point of delivery. Free on board (FOB) is used when the seller is liable to pay the costs to make the goods reach on board.
28 Ιουν 2024 · Key Takeaways. Ex Works and Free on Board are both international shipping terms. Incoterms specify the rules and terms used in international and domestic trade contracts. Ex Works requires that...
17 Δεκ 2022 · Ex-factory price vs. FOB. A manufacturer’s ex-factory price is the price at which the manufacturer sells the product to the next link in the supply chain, typically a wholesaler or retailer. Free on board (FOB) is a shipping term used to indicate that the seller has fulfilled their obligations to deliver the goods to a named port of export.
Ex-Factory Cost: The cost of the product at the factory, excluding any transportation or associated costs. FOB Cost: The Ex-Factory Cost plus the cost of loading the goods onto the transportation mode, with the buyer responsible for further transportation and associated expenses.
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27 Δεκ 2023 · The ex-factory price is the price at which a seller agrees to sell goods from their factory. The ex-factory cost is the cost of the product at the factory, excluding any transportation or associated costs. The FOB (Free On Board) price is the price of goods at the frontier of the exporting country. The FOB value is calculated as FOB Value: = Ex ...
The main difference between Ex Works and FOB is the point where the responsibility shifts from the seller to the buyer. Under FOB shipping terms, the seller is responsible for loading the goods on board the selected vessel, which means the buyer’s responsibility starts.
