What does it mean when the supplier says the export charge will be more than the product value?

Whenever you are dealing with a factory (not an agent or trading company) and you place an order for Export, which is pretty much every time we order, they must submit documents to the Customs control in China, this will generally be a set fee as opposed to per piece. Therefore if this set fee is relatively high in comparison to the order it may be unprofitable for them to proceed, hence they go with EXW (Ex.Works). EXW means that your freight forwarder picks up the goods from their factory as opposed to FOB which means they get the goods to the docks/warehouse which is technically after Customs. If going EXW it is always best to check with your freight forwarder as to the extra charges that may be involved.

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