A quote of “$3.20 EXW” and “$3.60 FOB” aren’t really different prices — they include different things. Incoterms define where the factory’s responsibility ends and yours begins. Getting them right avoids nasty surprises at the port.
The three you’ll see most
- EXW (Ex Works) — you take the goods at the factory door and arrange everything after: inland transport, export, freight, import. Cheapest headline price, most work for you.
- FOB (Free On Board) — the factory delivers the goods, cleared for export, onto the vessel at the port. You handle sea freight and import. The most common apparel term.
- CIF (Cost, Insurance & Freight) — the factory arranges and pays sea freight + insurance to your destination port. You handle import clearance and delivery from there.
How landlocked Nepal ships
Nepal has no seaport, so bulk sea freight routes overland to Indian ports (typically Kolkata/Haldia or Visakhapatnam) and sails from there — which is why you’ll often see “FOB Kolkata.” Air freight is available for samples and urgent runs. A good factory handles the export documentation and duty paperwork for you.
Which should you quote?
If you’re new to importing, FOB or CIF keeps it simpler — the factory gets your goods onto the water. As you scale and get your own freight forwarder, EXW/FOB can save money. Tell us your destination and we’ll quote the term that suits you. Get a quote.