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.
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CFR – Cost and Freight (named Place)
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EXW - Ex Works (named place)
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Costs
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Risks
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Costs
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Risks
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Warehouse services
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Seller
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Seller
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Warehouse services
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Seller
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Seller
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Marking and labeling
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Seller
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Seller
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Marking and labeling
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Seller
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Seller
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Packing of Goods
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Seller
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Seller
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Packing of Goods
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Seller
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Seller
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Loading at Seller’s premises
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Seller
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Seller
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Loading at Seller’s premises
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Buyer
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Buyer
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Transportation from Seller’s premises to Load port
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Seller
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Seller
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Transportation from Seller’s premises to Load port
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Buyer
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Buyer
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Unloading at Loading Port
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Seller
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Seller
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Unloading at Loading Port
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Buyer
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Buyer
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Loading to Vessel
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Seller
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Seller
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Loading to Vessel/Aircraft
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Buyer
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Buyer
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Export documentation
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Seller
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Seller
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Export documentation
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Buyer
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Buyer
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Export Customs Clearance
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Seller
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Seller
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Export Customs Clearance
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Buyer
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Buyer
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Export Taxes and duties (if any)
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Seller
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Seller
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Export Taxes and duties (if any)
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Buyer
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Buyer
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Handling at Load Port
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Seller
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Seller
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Handling at Load Port
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Buyer
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Buyer
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Main Carriage (Ocean freight)
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Seller
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Buyer
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Main Carriage (Ocean Freight/Airfreight)
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Buyer
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Buyer
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Import Customs Clearance
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Buyer
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Buyer
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Import Customs Clearance
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Buyer
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Buyer
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Import Documentation
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Buyer
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Buyer
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Import Documentation
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Buyer
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Buyer
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Import Taxes and Duties (if any)
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Buyer
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Buyer
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Import Taxes and Duties (if any)
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Buyer
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Buyer
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Transportation from named place to final destination of buyer
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Buyer
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Buyer
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Transportation from destination port to named place
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Buyer
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Buyer
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Unloading at named place
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Buyer
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Buyer
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Unloading at named place
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Buyer
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Buyer
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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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