EXW vs FAS – who pays for what?

EXW is Ex Works and FAS is Free Alongside Ship. We compare who pays for transport, customs clearance and duty, and where risk passes to the buyer.

Key differences

Under FAS, the seller also covers export clearance and transport to the port or terminal. Under EXW, the buyer pays for this instead. The two rules also differ in the point at which risk passes to the buyer and in the mode of transport. FAS applies only to sea and inland waterway transport.

Export clearance
EXWBuyerFASSeller
Transport to the port or terminal
EXWBuyerFASSeller
Risk passes
EXWAt the seller’s premises, before loadingFASAlongside the ship at the port of loading
Mode of transport
EXWAnyFASSea only

Full cost breakdown

CostEXWFAS
Export clearanceBuyerSeller
Transport to the port or terminalBuyerSeller
Loading for main carriageBuyerBuyer
Main carriage (freight)BuyerBuyer
InsuranceNo obligationNo obligation
Unloading at destinationBuyerBuyer
Import clearanceBuyerBuyer
Import duty and VATBuyerBuyer
Risk passesAt the seller’s premises (or another agreed place), when the goods are ready for collection – before loading.At the port of loading, when the goods are placed alongside the ship (e.g. on the quay).
Mode of transportAny mode of transport (sea, rail, air, road)Sea and inland waterway transport only

Notes

  • EXW – export clearance: formally the buyer’s responsibility. In practice, the export declaration in China is filed by the supplier or a Chinese customs broker, because a foreign buyer is not registered with customs there.

What to watch for when importing from China

EXW Ex Works

Once the goods are ready for collection, everything else is your responsibility – including loading and export clearance. In China, the export declaration is filed by a company registered with Chinese customs – usually the supplier or a Chinese customs broker – so you will need their help anyway. Agree in writing who loads the goods and who handles export clearance. If the goods are damaged during loading, the loss is yours.

More about EXW →

FAS Free Alongside Ship

FAS is hardly ever used for containers, because a container is handed over at the terminal several days before loading. It makes sense for bulk and oversized cargo – for containers, FCA is the better choice.

When to use EXW and when to use FAS?

  • EXW – when you want to control transport right from the factory, and your freight forwarder arranges collection of the goods and export clearance in China.
  • FAS – for bulk and oversized cargo in sea freight, when the buyer arranges loading on board.

Buying on EXW or FAS terms? You choose the forwarder

We organise transport from China – by rail, sea or air – together with customs clearance in Poland and cargo insurance. Send us your cargo details and we will prepare a quote tailored to your shipment.

Request a quote

FAQ

What is the main difference between EXW and FAS?

Under FAS, the seller also covers export clearance and transport to the port or terminal. Under EXW, the buyer pays for this instead. The two rules also differ in the point at which risk passes to the buyer and in the mode of transport. FAS applies only to sea and inland waterway transport.

Where does risk pass to the buyer under EXW?

At the seller’s premises (or another agreed place), when the goods are ready for collection – before loading.

Where does risk pass to the buyer under FAS?

At the port of loading, when the goods are placed alongside the ship (e.g. on the quay).

Can EXW and FAS be used for rail freight from China?

Only EXW. EXW works with any mode of transport, while FAS applies only to sea and inland waterway transport. That is why FAS is not used for rail freight from China.

Compare other pairs

Compare two rules

← Back to the chart of all rules

Incoterms® is a registered trademark of the International Chamber of Commerce (ICC). This page is an independent, simplified summary of how costs and risks are divided – it is not affiliated with or approved by the ICC. When drafting contracts, use the official text of the Incoterms® 2020 rules published by the ICC.