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Ex-Works, To-Pay and Freight on Actuals: Shipping Terms Explained

What Ex-Works, To-Pay and Freight on Actuals mean on a jewellery quote, who pays transport, and how to choose the right option for bulk orders.

Ex-Works, To-Pay and Freight on Actuals: Shipping Terms Explained, wholesale imitation jewellery by Jagruti, Mumbai

Quotes from manufacturers often say "Ex-Works" and "To-Pay available". If you are used to delivered prices from local wholesalers, these terms can be confusing. Here is what they mean and how to choose.

Ex-Works

An Ex-Works price is the price at the factory gate. It covers the goods and standard packing. It does not include transport to you. At Jagruti, all prices are direct factory rates, Ex-Works Mumbai.

Why factories quote Ex-Works: transport cost depends entirely on where you are, how much you order and how fast you want it. Quoting Ex-Works keeps the product price the same for every buyer and lets you choose transport.

To-Pay

To-Pay means the transport company collects the freight charge from you when the goods are delivered. The factory hands over the consignment; you pay on receipt. Common with road transport companies in India.

Freight on Actuals

Freight on Actuals means the supplier arranges and pays the transport, then bills you the actual freight charged, without markup. Useful when you want the supplier to handle booking.

Comparing options

OptionWho booksWho paysWhen
You collectYouYouAt pickup
To-PaySupplier hands over to your chosen transporterYouOn delivery
Freight on ActualsSupplierYou, via supplier invoiceWith invoice
CourierEitherAgreedBefore or after

Choosing a mode

  • Road transport: cost-effective for large cartons within India.
  • Courier: faster for smaller or urgent consignments.
  • Air cargo: for urgent large orders or long distances.
  • Your own transporter: if you already ship regularly from Mumbai.

Insurance, liability and value declaration

Ask who is responsible for loss or damage in transit and whether insurance is included. Declare the true value on the invoice and e-way bill: under-declaring to save on insurance or tax can leave you unable to claim if the consignment is lost. For high-value consignments, transit insurance costs little compared with the risk. Photograph cartons on receipt, as covered in our QC checklist.

Allocating freight in your costing

To know your true landed cost, divide the total freight bill by the number of pieces in the consignment and add it to the unit cost. Larger, fuller consignments cost less per piece to move. Read how to calculate margins.

How freight is charged within India

  • Surface transport (road) is usually charged by weight, with a minimum chargeable weight per consignment, plus handling and documentation charges.
  • Couriers charge by the higher of actual weight and volumetric weight, calculated from carton size: length times breadth times height in centimetres, divided by a factor, often 5,000 (some use 4,000). A large carton of light jewellery is billed on its size, so pack tightly.
  • Air cargo within India follows similar volumetric rules.

The e-way bill

For goods moved by road, a GST e-way bill is generally required when the consignment value exceeds Rs 50,000. The supplier, the recipient or the transporter generates it on the e-way bill portal, and the vehicle must carry it. Some states set different limits for movement within the state. Jewellery consignments often cross this value, so make sure the supplier or transporter generates it, or the goods can be held at a check.

Choosing a transporter

For regular wholesale consignments, a transporter you trust matters more than the lowest rate. Look for:

  • experience carrying high-value, small consignments
  • tracking or at least reliable status updates
  • clear rules on liability and claims
  • delivery to your door or a convenient godown

Many buyers use one transporter for regular bulk goods and a courier for urgent top-ups and samples.

Packing for domestic transport

Domestic surface transport involves loading, unloading and stacking with other goods. Pack jewellery in strong cartons with no empty space, seal them with tape, number them, and keep a list of contents per carton. Mark cartons with the consignee's name and phone number, not with the word "jewellery".

Claims for loss or damage

If a carton arrives damaged or short, note it on the delivery receipt before signing, photograph the carton and contents, and inform the transporter and supplier the same day. Claims made days later, without a note on the receipt, are much harder to win. Keep the invoice, e-way bill and packing list together so the value and contents of each carton can be proven.

Frequently asked questions

What does Ex-Works mean on a jewellery quote?

The price at the factory gate, excluding transport to you.

What is To-Pay transport?

The transporter collects the freight charge from you on delivery.

Does Jagruti ship Pan-India?

Yes. Prices are Ex-Works Mumbai; we arrange To-Pay or Freight on Actuals, or hand over to your transporter.

Buying for a wholesale or multi-store business?

Factory-direct from Mumbai. MOQ 200 pcs per design (400 for earrings and pendants). GST invoice, Pan-India and export supply.
For Wholesalers & Distributors

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