Difference between CFR and EXW under delivery rules

Compare EXW and CFR under Inco terms 2020

How to differentiate CFR and EXW delivery rules according to Incoterms 2020 published by ICC?

Let us compare CFR and EXW

EXW is use for movement of goods for all modes of transport;  Sea, Air or Land.   However, CFR is known as marine restricted modes of delivery and is used only for the movement of goods by Sea and Inland water transport.

Costs and risk of delivery of goods transfers from seller to buyer when goods are placed at seller’s premises for the disposal of buyer for further movement of pre carriage.  But the cost of pre carriage, and transportation to loading port, cost of freight till the destination port name mentioned in buyer’s country is undertaken by seller under CFR terms.  However, the risk of seller transfers to buyer, when goods are gone board the vessel under CFR rules of delivery.

Under EXW, the  buyer undertake the responsibility for export customs clearance whereas under CFR terms, it is the responsibility of seller.

Delivery of goods does not take place under CFR terms where in delivery of goods takes place under EXW.

 

CFR – Cost and Freight (named Place)

 

EXW - Ex Works (named place)

 

Costs

Risks

 

 

Costs

Risks

Warehouse services

Seller

Seller

 

Warehouse services

Seller

Seller

Marking and labeling

Seller

Seller

 

Marking and labeling

Seller

Seller

Packing of Goods

Seller

Seller                                   

 

Packing of Goods

Seller

Seller                                   

Loading at Seller’s premises

Seller

Seller

 

Loading at Seller’s premises

Buyer

Buyer

Transportation from Seller’s premises to Load port

Seller

Seller

 

Transportation from Seller’s premises to Load port

Buyer

Buyer

Unloading at Loading Port

Seller

Seller

 

Unloading at Loading Port

Buyer

Buyer

Loading to Vessel

Seller

Seller

 

Loading to Vessel/Aircraft

Buyer

Buyer

Export documentation

Seller

Seller

 

Export documentation

Buyer

Buyer

Export Customs Clearance

Seller

Seller

 

Export Customs Clearance

Buyer

Buyer

Export Taxes and duties (if any)

Seller

Seller

 

Export Taxes and duties (if any)

Buyer

Buyer

Handling  at Load Port

Seller

Seller

 

Handling  at Load Port

Buyer

Buyer

Main Carriage (Ocean freight)

Seller

Buyer

 

Main Carriage  (Ocean Freight/Airfreight)

Buyer

Buyer

Import Customs Clearance

Buyer

Buyer

 

Import Customs Clearance

Buyer

Buyer

Import Documentation

Buyer

Buyer

 

Import Documentation

Buyer

Buyer

Import Taxes and Duties (if any)

Buyer

Buyer

 

Import Taxes and Duties (if any)

Buyer

Buyer

Transportation from named place to final destination  of buyer

Buyer

Buyer

 

Transportation from destination  port to named place

Buyer

Buyer

Unloading at named place

Buyer

Buyer

 

Unloading at named place

Buyer

Buyer

 

The term EXW and CFR are explained easily in this website separately and you may click below to read:

 

CFR  Cost and Freight

 

EXW   Ex Works

 

The above information makes you to understand the difference between EXW and CFR.  If you would like to add more information on the difference between EXW and CFR, share below your thoughts.

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