[EXW Terms/Sea FCL Import] When Importing from the Exporter's Factory by Sea Container
Hello, this is the Digital Import Logistics Forwarding Service - Shipda (SHIPDA).
If you're importing by container under EXW terms, let's take a detailed look at how to use the Shipda service and what information you need to input:)
- What is EXW? Translated literally, it is a compound of EX (~in front of) + WORK (factory). In terms of Incoterms, it means that the exporterโs duty ends when they place the product 'in front of the factory' after production.
Thus, the importer is responsible for the transportation from the exporter's factory. Diving deeper, since the exporter is only responsible for the production, the job of loading products into empty containers falls to the importer. Of course, you wouldn't do this directly, right? You would hire a forwarder like 'Shipda' to handle this task. (*If the importer does not wish to cover this loading cost, trade terms should be negotiated with the exporter under FCA terms.)
The major costs of import are 'product cost / logistics cost / customs tax.' If negotiated under EXW terms, the information to be inquired from the 'exporter (seller)' and transferred to the 'forwarder' to calculate the logistics cost are as follows.
[Information to inquire from the exporter]
Pick-up address
Container type/size/quantity
Port of transshipment overseas
[Information for the importer to check]
Domestic port of transshipment
Final domestic destination address
You will need to provide these 5 pieces of information to the forwarder. Unlike when proceeding with small cargo, you will need to check 'container type/size/quantity' information rather than cargo volume/weight information. The 'exporter' who is preparing and packaging the goods knows this information accurately, so it is most advisable to ask the exporter for this information.
When using Shipda, you can check quotes online rather than having to make annoying email/phone inquiries. Let's take a look together:)
[Let's assume the import as follows.]
- Product pick-up address: 101 street, TOKYO
- Item name, container type/size/quantity: Electronics, 20DRY*1 unit
- Port of transshipment overseas: Yokohama Port
- Domestic port of transshipment: Busan Port
- Final domestic destination address: 5th Floor, 6 Jongno, Jongno-gu, Seoul (Company) Sellernote
In the case of container import transportation, information on whether the domestic final destination address can accommodate a 'container' is also essential. If it's not feasible, the cargo in the container should be unloaded at the port, loaded onto a standard vehicle, and transported. In this example, it is assumed to be 'feasible.' For quote confirmation, go to 'Shipda - Real-time Quote Query.' (URL: https://www.ship-da.com/realtime)
[STEP 1] Transportation Method / Departure & Destination / Incoterms
(1) Transportation method: For container import transportation, it proceeds by 'sea.' Select 'sea.'
(2) Departure location selection: Since 'Shipda' will be requested to pick up from the exporter's release location, select 'inland.'
(3) Inland address: Select 'Japan' as the 'departure country' and enter the detailed inland address confirmed by the exporter.
(4) Transshipment port: Enter the 'port of transshipment' confirmed by the exporter.
โป You can ask which port the exporter frequently uses and select accordingly. If it's difficult to confirm with the exporter, check the nearest port on Google Maps etc., search and select it. (Shipda later verifies the release location address and corrects it to the most optimal port.)
(5) Destination selection: If you only wish to request transportation to the domestic port, select 'port.' If you wish to request transportation to the final destination, select 'inland.' (In this case, assuming you're requesting to the final destination.)
(6) Transshipment port: If 'inland' is selected, decide through which port it will proceed. Select a nearby port considering the final destination address. 'Incheon/Pyeongtaek/Busan Port' is commonly used.
(7) Inland address: Search for the destination by city/county/district level and enter the detailed address.
(8) Incoterms: Based on the entered results, Incoterms are displayed.
[STEP 2] Cargo Information/Check Point/Requirements
(1) Transportation type: Choose FCL for container transportation. FCL stands for Full container loaded, used when an import company independently uses one container.
(2) Item: Enter the name of the item you want to import.
(3) Container type/size/quantity: Select and enter based on the information confirmed by the exporter. Dry container is commonly used, which is also known by the term GP (General purpose). If importing with one 20-foot dry container, the exporter will mention it as 20DRY*1 unit or 20GP*1 unit. (It is also called Standard or 20ST.)
(4) Dangerous goods: Choose whether the cargo is dangerous or not. If youโre unsure whether the goods you're importing are dangerous, choose 'No' and apply.
(5) If you need to add container types or sizes, click the button. In this case, itโs not applicable.
[STEP 3] Check Point/Requirements
(1) Checkpoint: Typically, how things are handled when EXW terms are applied is described. If youโre not a trade expert, it's recommended to maintain the default.
(2) Customs brokerage: If a customs broker for import clearance isnโt designated, the task is handled by Shipdaโs partner customs broker.
(3) Cargo insurance: Apply if insurance is needed.
(4) Acting issue of FTA Certificate of Origin: If the exporter finds it difficult to issue an FTA C/O, request Shipda to handle it.
[STEP 4] Task Assignment
(1) Freight registration request: For 'EXW terms' requiring quotes from overseas inland, exploration time is needed to calculate local costs. (Immediate quote inquiry possible for FOB terms where the importer handles transportation and operational scope from the port.) After confirming that a quote has been submitted via email, check the final quote on the my page.
(1) Estimated Cost: The final unit price applied with the current exchange rate. Click below [Apply Coupon] to apply logistics discount coupons given upon joining.
(2) Accept/Reject Quote: Determine whether to accept or reject the given quote.
If you accept the quote, the screen changes to enter 'exporter information.' To initiate transportation, please enter the information so that the forwarder 'Shipda' can contact the exporter.
โป Note: You must enter overseas exporter (seller) information, not importer (buyer) information.
(1) Import: If there's a record of working with the same exporter, you can import it for easy input.
(2) Complete: After entering all the information, press the complete button.
We have looked into what information is needed and how to input it to request Shipda under EXW terms as described above:)
When purchasing products from the same exporter (seller) again, you can skip the above procedure and click the 'Reorder' button in the transportation completion tab.
