Incoterms 2020 Quick Reference

EXW · FOB · CFR · CIF — responsibility, cost and risk at a glance

The four incoterms that cover most textile trade, summarised for quick reference. S = seller's responsibility, B = buyer's responsibility.

Responsibility Matrix

Cost / task	EXW	FOB	CFR	CIF
Export packing	S	S	S	S
Inland transport to port (origin)	B	S	S	S
Export customs clearance	B	S	S	S
Origin port charges & loading	B	S	S	S
Ocean freight	B	B	S	S
Marine insurance	B	B	B	S (min. cover)
Destination port charges	B	B	B	B
Import clearance & duty	B	B	B	B
Inland delivery (destination)	B	B	B	B

Risk Transfer Points

Term	Risk passes to buyer…	Caution
EXW	At the factory gate	Buyer must handle export clearance in origin country — avoid; use FCA instead
FOB	When goods are on board the vessel	Recommended default for sea freight
CFR	On board at ORIGIN port	Seller pays freight but risk is yours at Karachi — insure it yourself
CIF	On board at ORIGIN port	Insurance included is minimum cover (ICC-C); specify ICC-A for full cover

Quick Selection Guide

Your situation	Use
You have a freight forwarder / carrier contract	FOB
First import, want one supplier invoice incl. freight + insurance	CIF (named destination port)
You carry an open marine insurance policy	FOB or CFR
Air shipment	FCA (named airport) — not FOB

Always name the port precisely: 'FOB Karachi', 'CIF Felixstowe' — never 'CIF UK'.
Normalise quotations to one term before comparing suppliers.
Destination duty, taxes and delivery are the buyer's under all four terms.

MZ Global Trading quotes FOB Karachi / Port Qasim as standard; CFR and CIF to any named port available on request with transparent freight breakdown.

Disclaimer: This document is provided for general information only and does not constitute legal, customs or compliance advice. Figures reflect common trade practice and are indicative — always verify against your buyer specification, applicable regulations and your destination market.