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ERP ReferenceIncoterms® rules

CFR vs FOB

Where CFR and FOB differ in who pays, where risk passes and who insures — two Incoterms® 2020 rules compared from the same data as the cost matrix.

Key differences

Side by side

ItemCFRFOB
Transport modeSea and inland waterway onlySea and inland waterway only
Risk passesOn board the ship at the port of shipmentOn board the ship at the port of shipment
PackagingSellerSeller
Loading at originSellerSeller
Export clearanceSellerSeller
Pre-carriageSellerSeller
Main carriage (differs)SellerBuyer
InsuranceDependsDepends
Unloading at destination (differs)DependsBuyer
Import clearanceBuyerBuyer
Import dutiesBuyerBuyer
On-carriageBuyerBuyer

2 of 10 cost items differ (rows in bold).

Which one fits your shipment?

Open the rule pages for the full cost table and notes: CFR and FOB. Or answer five questions in the rule chooser, which explains why each rule fits or does not.

Sources

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