What is the connection and difference between FOB EXW CIF price for LED display?

What is the connection and difference between FOB EXW CIF price for LED display?

 

 

 

 

LED display's FOB, EXW, and CIF prices are three commonly used price terms in international trade, each with specific meanings, connections, and differences.

 

I. Definitions and Included Costs

 

EXW (Ex Works)

Definition: EXW, or factory delivery price, refers to the seller delivering the goods to the buyer for disposal at the seller's location or other designated place (such as a factory, warehouse, etc.), at which point delivery is completed.

Included Costs: Typically only includes production costs and possible taxes (depending on the agreement between the parties, taxes may not always be included). This is the minimum price quoted by the seller, meaning the buyer is responsible for all transportation costs and risks from the seller's location to the final destination.

 

FOB (Free on Board)

Definition: FOB, or on-board delivery price, refers to the seller delivering the goods to the buyer's designated ship at the specified loading port, at which point delivery is completed.

Included Costs: In addition to production costs and taxes, it also includes domestic transportation costs and customs clearance fees from the seller's factory to the loading port. This means the seller is responsible for transporting the goods to the loading port and delivering them to the buyer's designated ship, after which the risks and costs are borne by the buyer.

 

CIF (Cost, Insurance, and Freight)

Definition: CIF, or cost plus insurance and freight, refers to the seller being responsible for transporting the goods to the specified destination port and bearing the risks and costs during transportation, including insurance.

Included Costs: In addition to all costs included in EXW and FOB prices, CIF also includes international transportation costs and insurance. This means the seller is responsible for transporting the goods from the loading port to the destination port and bearing all risks and costs during transportation, including any losses or damages that may occur during transport.

 

II. Connections

 

Gradual Increase in Costs: From EXW to FOB to CIF, the costs and risks borne by the seller gradually increase. EXW prices are the lowest, only including production costs and possible taxes; FOB prices include additional domestic transportation and customs clearance fees; CIF prices further include international transportation costs and insurance.

 

Reduction in Buyer's Responsibility: As the costs and risks borne by the seller increase, the buyer's responsibilities and risks decrease accordingly. Under EXW prices, the buyer bears all transportation costs and risks; under FOB prices, the buyer only bears the transportation costs and risks from the loading port to the destination; under CIF prices, the buyer bears almost no risks and costs during transportation.

 

III. Differences

 

Delivery Location: The delivery location for EXW is at the seller's location or other designated place; for FOB, it is at the specified loading port; for CIF, it is at the specified destination port.

 

Cost Bearing: Under EXW prices, the buyer bears all costs; under FOB prices, the seller bears domestic transportation and customs clearance costs, while the buyer bears international transportation costs and risks; under CIF prices, the seller bears all costs until the destination port.

 

Risk Transfer: Under EXW prices, the risk is transferred to the buyer upon delivery; under FOB prices, the risk is transferred to the buyer when the goods are loaded onto the ship; under CIF prices, the risk is transferred to the buyer when the goods pass the ship's rail at the loading port (however, in modern practice, this may vary depending on the contract terms).

 

Our factory HELILAI main products: intelligent and cultural creative LED display, high-definition small-pitch LED display, indoor and outdoor full-color LED display, LED transparent glass screen, intelligent LED floor tile scene screen, intelligent sensor LED interactive screen.

 

Application areas: dedicated to intelligent transportation, intelligent security monitoring, radio and television broadcasting, video conferencing, intelligent advertising media, real estate and commercial display, science and education stadiums, cultural performance stage display, smart scene creative display, and other intelligent terminal smart display engineering applications.

 

The company's products have passed: CE ,Rohs certification, BIS certification ,3C certification, green environmental certification, strictly in the ISO9001: quality certification system to improve product quality management, in accordance with the process of quality control procedures in strict accordance with IQC, IPQC, CFQC, QA Chain management.

 

If you are looking for a manufacturer or supplier of LED display and module, please feel free to contact us! We will definitely give you a professional plan, reasonable price, and thoughtful service! Wechat:86 18676738905 Email:ledhll88@163.com