[EXW Terms/Sea LCL Import] When Importing Small Cargo by Sea from Exporter's Factory
Hello, Digital Import Logistics Forwarding Service - SHIPDA.
If you are importing small cargo under EXW terms, let's find out how to use the Shipda service and what information you need to input in detail:)
- What are EXW terms? In English, it's a compound word of EX(beyond) + WORK(factory). If interpreted in the form of Incoterms, it means that the exporter's duties end when they place the goods 'in front of the factory' after production.
Therefore, the importing company is assigned the responsibility of transportation from the exporter's factory. This means the importer must manage transportation from the factory to import the goods. At this time, they can commission the task to a forwarder like SHIPDA.
The main costs for import consist of 'product cost / logistics cost / customs duties and taxes'. If negotiated under EXW terms, the information you need to ask the exporter (seller) to calculate logistics costs is as follows.
[Inquiries to the Exporter]
Product pickup address
Volume/weight/quantity of packed cargo
Name of overseas transit port
[Information the Importer Checks]
Name of domestic transit port
Domestic address of final destination
You can deliver the above five pieces of information to the forwarder. If you use Shipda, you can check the quote online without cumbersome email/call inquiries. Let's look together:)
[Let's assume the import as follows.]
- Product pickup address: 101 street, Shanghai, China
- Item name, volume/weight/quantity of packed cargo: Clothing, 100*50*50cm, 20kg - 1BOX, Total 15 BOXES
- Name of overseas transit port: Shanghai Port
- Name of domestic transit port: Incheon Port
- Domestic address of final destination: 5th Floor, 6 Jongno, Jongno-gu, Seoul (SellerNote Co., Ltd.)
If you are not using a full container, proceed with the LCL method, using only part of the space.
Shipda offers a specialized service called 'Ocean Ticket' that removes intermediary distribution stages for small cargo imports.
(* URL: https://www.ship-da.com/oceanticket )
[STEP 1] Country/Departure Type/Shipping Address/Transit Port
(1) Country of Departure: Since it's importing cargo from China, select 'China'.
(2) Departure Selection: Since pickup needs to be commissioned from the exporter's factory under EXW terms, select 'Inland'.
(3) Overseas Inland Address: Enter the 'shipping address' verified by the exporter.
(4) Transit Port: Enter the 'transit port' verified by the exporter.
โป Check with the exporter for frequently used ports and select them. If verification is difficult, check closest ports using Google Maps and choose. Shipda will verify the shipping address later and correct to the optimal port.
[STEP 2] Destination Type/Destination Address
(1) Destination Selection: If only wishing to commission up to the domestic port, select 'Port'. If hoping to commission transportation to the final destination, select 'Inland'. (In this case, it's assumed to be commissioned to the final destination.)
(2) Destination Address (City/District): Search for the destination by city/district.
(3) Detailed Address: Enter the detailed address below city/district.
(4) Transit Port: Select the transit port. Choose the port closest to the final destination.
[STEP 3] Cargo Information/Inland Transportation Type/Checkpoints/Requirements
(1) Cargo Information Input Method: It's divided into separate packaging and total volume/weight. Check this information from the exporter. The exporter may guide the volume/weight per individual box or deliver the total volume/weight of all boxes.
- Input by Packaging: If guided by volume/weight per individual box, select input by packaging.
- Total Volume/Weight Input: If guided by total volume/weight of all boxes, select total volume/weight input.
However, for EXW terms, overseas inland transport fees must be informed. Since inland transport fees require individual box volume/weight information, it's recommended to select 'input by packaging'.
(2) Product Name: Enter the name of the imported product.
(3) Packaging Type: Select the packaging form of the product. It generally proceeds by box or pallet.
(4) Volume: Enter the volume of individual boxes by width*length*height.
(5) Weight: Enter the weight of individual boxes.
(6) Packaging Quantity: Enter the quantity of individual boxes.
(7) Hazardous Materials: Select whether the cargo is hazardous or not. If unsure whether your cargo is hazardous, choose 'No' when applying.
(8) Double Stack: Whether it's possible to stack 'other cargo' on top of your packed cargo is generally 'possible'. If it's fragile, select 'Not Allowed'.
(1) Inland Transportation Type: The cheapest transportation method that matches the volume/weight you entered is automatically selected.
(2) Checkpoint: Enter the standard value presented by SHIPDA; cannot be changed.
(3) Customs Clearance Order: If no customs broker is separately designated for import customs clearance, handle business through Shipda's partner customs broker.
(4) Cargo Insurance Application: Apply if insurance is required.
(5) FTA Certificate of Origin Proxy: If the exporter finds it difficult to issue the FTA C/O, commission it to Shipda.
[STEP 4] Check Precautions/Commission
(1) Agreement: After confirming the quote and precautions, click the checkbox. For EXW terms, overseas cost calculation is required, so immediate quote inquiry is not possible. It's informed within 24 hours.
(2) Detailed Quote Download: Check costs in the form of a quote.
(3) Ticket Issue: Proceed with the order.
[STEP 5] Quote Confirmation and Exporter Information Input
Confirm the final quote on My Page.
(1) Quote Price: The final unit price with the current exchange rate applied. Click [Apply Coupon] below to apply a logistics discount coupon given upon membership registration.
(2) Accept/Reject Quote Price: Decide whether to accept or reject the quote.
Accepting the quote changes the screen to input 'exporter information'.
Forwarder 'SHIPDA' contacts the exporter and handles transportation, so please input provided information.
โป Caution: Enter overseas exporter (seller) information, not importer (buyer) information.
(1) Load: If proceeding with the same exporter, easily input via load.
(2) Complete: After entering all information, click completed.
We've learned the necessary information and input method to commission SHIPDA under EXW terms as described above:) Next time you purchase from the same exporter (seller), you can skip the above steps by clicking 'Reorder' in the Transport Completion tab.
