What is the main difference between CIF and EXW?

They split 5 cost blocks differently. export clearance falls to the seller under CIF and the buyer under EXW; carriage to port / terminal falls to the seller under CIF and the buyer under EXW; loading onto main carriage falls to the seller under CIF and the buyer under EXW; main carriage (freight) falls to the seller under CIF and the buyer under EXW; insurance falls to the seller under CIF and the none under EXW.

Where does risk pass under CIF?

When the goods are loaded on board at origin — same as CFR.

Where does risk pass under EXW?

When the goods are placed at the buyer’s disposal at the seller’s premises — before anything is loaded.

Can CIF and EXW both be used for container shipments?

EXW works for any mode of transport. CIF is written for sea and inland waterway transport only.

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CIF vs EXW: who pays what

CIF is Cost, Insurance and Freight. EXW is Ex Works. Incoterms 2020.

The difference that matters

Export clearance:CIFSeller·EXWBuyer
Carriage to port / terminal:CIFSeller·EXWBuyer
Loading onto main carriage:CIFSeller·EXWBuyer
Main carriage (freight):CIFSeller·EXWBuyer
Insurance:CIFSeller·EXWNeither obliged

Full cost split

Cost block	CIF	EXW
Export clearance	Seller	Buyer
Carriage to port / terminal	Seller	Buyer
Loading onto main carriage	Seller	Buyer
Main carriage (freight)	Seller	Buyer
Insurance	Seller	Neither obliged
Unloading at destination	Buyer	Buyer
Import clearance	Buyer	Buyer
Duties and import taxes	Buyer	Buyer
Risk passes	When the goods are loaded on board at origin — same as CFR.	When the goods are placed at the buyer’s disposal at the seller’s premises — before anything is loaded.
Transport mode	Sea / inland waterway	Any mode

What people get wrong

CIF

The required cover is the minimum level, not all-risks. Buyers who assume they are fully covered find out at claim time.

EXW

The buyer is formally responsible for export clearance in their supplier’s country, which they often cannot legally do. FCA usually fixes this.

Questions

What is the main difference between CIF and EXW?: They split 5 cost blocks differently. export clearance falls to the seller under CIF and the buyer under EXW; carriage to port / terminal falls to the seller under CIF and the buyer under EXW; loading onto main carriage falls to the seller under CIF and the buyer under EXW; main carriage (freight) falls to the seller under CIF and the buyer under EXW; insurance falls to the seller under CIF and the none under EXW.
Where does risk pass under CIF?: When the goods are loaded on board at origin — same as CFR.
Where does risk pass under EXW?: When the goods are placed at the buyer’s disposal at the seller’s premises — before anything is loaded.
Can CIF and EXW both be used for container shipments?: EXW works for any mode of transport. CIF is written for sea and inland waterway transport only.

Whichever term you agree, the paperwork has to say so

The Incoterm and named place belong on the commercial invoice, the packing list and the shipper's instructions — spelled the same way on each. ovrseas generates the set from one entry so they cannot disagree with each other.

Commercial invoice template

Compare other pairs

CFR vs CIF CFR vs EXW CIF vs CIP CIF vs CPT CIF vs DAP CIF vs DDP CIF vs DPU CIF vs FAS

Incoterms® is a registered trademark of the International Chamber of Commerce. This page is an independent summary of how costs and risk are allocated and is not affiliated with or endorsed by ICC. For contract drafting, use the official Incoterms® 2020 rules published by ICC.