In This Guide
Incoterms 2020 define the precise point where shipping responsibility, costs, and cargo damage risks transfer from the Indian exporter to the African buyer. Choosing the wrong Incoterm can lead to surprise freight surcharges or insurance coverage gaps.
What EXW, FOB, and CIF Actually Cover
| Cost Component | EXW (Ex Works) | FOB (Free on Board) | CIF (Cost, Insurance & Freight) |
|---|---|---|---|
| Factory Packaging & Loading | Buyer Pays | Seller Pays | Seller Pays |
| Inland Transit to Indian Port | Buyer Pays | Seller Pays | Seller Pays |
| Indian Port & Customs Clearance | Buyer Pays | Seller Pays | Seller Pays |
| Ocean Freight to African Port | Buyer Pays | Buyer Pays | Seller Pays |
| Marine Cargo Insurance | Buyer Pays | Buyer Pays | Seller Pays |
| Destination Port Clearance & Duty | Buyer Pays | Buyer Pays | Buyer Pays |