Page SEO Summary: This procurement guide helps international buyers understand pellet mill EXW factory prices—covering trade term definition, cost components, additional costs, and total landed cost calculation.
For experienced international buyers, EXW (Ex Works) pricing offers the greatest control over the procurement process. As the trade term with the smallest seller responsibility, EXW price represents the equipment cost at the factory gate—and nothing more. Everything else, from inland transport to export clearance to ocean freight, is the buyer’s responsibility.
This guide provides a comprehensive framework for understanding pellet mill EXW factory prices, helping you calculate total landed costs and determine whether this pricing model suits your procurement needs.
Example 2: Medium Pellet Mill ($15,000 EXW) to Europe
Item
Amount (USD)
EXW Price
15,000
Export packing
800
Inland freight (China)
600
Export clearance
200
FOB Price
16,600
Ocean freight
2,000
Insurance
100
Destination charges
400
Customs clearance
200
Import duty (1.7%)
333
VAT (21%)
4,213
Inland freight (destination)
500
Total Landed Cost
24,346
Example 3: Large Pellet Mill ($50,000 EXW) to North America
Item
Amount (USD)
EXW Price
50,000
Export packing
2,500
Inland freight (China)
1,000
Export clearance
300
FOB Price
53,800
Ocean freight
4,000
Insurance
300
Destination charges
600
Customs clearance
300
Import duty (2.5%)
1,475
VAT/import tax (0%)
0
Inland freight (destination)
800
Total Landed Cost
61,275
Supplier Questions for EXW Quotes
Question
Why Ask
“What is the EXW price?”
Base cost
“What is the packed weight and volume?”
Freight calculation
“Do you provide export packing?”
If not, buyer arranges
“Do you provide documents for export?”
Export clearance
“Can I visit the factory for inspection?”
Quality verification
“What is your payment terms?”
Financial planning
Procurement Checklist: EXW Price Evaluation
Pre-Purchase
□ Required machine specifications defined
□ EXW quote requested from suppliers
□ Packing weight and volume obtained
□ Payment terms confirmed
Cost Calculation
□ EXW price confirmed
□ Export packing cost estimated
□ Inland freight (China) estimated
□ Export clearance cost estimated
□ Ocean freight quoted
□ Insurance cost calculated
□ Import duty rate checked
□ VAT rate confirmed
□ Total landed cost calculated
Logistics Planning
□ Freight forwarder identified
□ Customs broker identified (import)
□ Export packing arranged or confirmed
□ Shipping schedule planned
□ Insurance arranged
Supplier Evaluation
□ Multiple EXW quotes compared
□ Scope of supply verified
□ Component specifications reviewed
□ Factory visit planned (if needed)
Frequently Asked Questions
1. What is EXW price?
EXW (Ex Works) price is the equipment cost at the factory gate. It includes only the equipment itself. The buyer is responsible for all additional costs: packing, transport, export clearance, freight, insurance, and import charges.
2. What is the difference between EXW and FOB?
EXW includes only the equipment at the factory. FOB includes equipment + export packing + inland freight to port + export clearance. FOB is typically 20-30% higher than EXW.
3. Who arranges export clearance under EXW?
The buyer is responsible for export clearance under EXW. In practice, many buyers use a freight forwarder who can arrange clearance on their behalf.
4. Who pays for export packing under EXW?
The buyer pays for export packing. Some suppliers can arrange packing at additional cost; others require the buyer to arrange their own packing.
5. Is EXW cheaper than FOB?
EXW is cheaper than FOB because it includes fewer services. However, the total cost to the buyer may be higher if the buyer cannot arrange logistics as efficiently as the supplier.
6. When should I choose EXW?
EXW is best for experienced importers with their own freight forwarders who want maximum control over the logistics process and the lowest possible equipment price.
EXW transfers risk to the buyer earlier than other terms. The buyer bears risk from the moment the goods are made available at the factory. This is why EXW is recommended only for experienced buyers.
Zhang Wei has over 12 years of experience in the biomass and feed pellet mill industry, with a background in mechanical engineering and international project execution. He has managed pellet mill export projects to clients across Southeast Asia, the Middle East, Africa, Europe, and Latin America, with extensive experience in international trade, pricing, and logistics.
With hands-on experience in both the manufacturing workshop and client-side operations, Zhang brings practical insights into successful equipment procurement—from the factory floor to the customer’s site.
