WHAT IS CFR












                                          WHAT IS CFR


CFR is “Cost and Freight”. This incoterm is only for the maritime shipping. In this incoterm the seller does not only delivers the goods to the buyer but he or she is also responsible for goods to be transported to the destination port and their transportation costs. It is commonly used where where the seller has direct access to the vessel for loading. For example bulk cargos and non containerised goods.

The seller under CFR undertakes the responsibility of delivering the goods to the port mentioned in the contract, get a customs clearance from the origin and pays for the international freight. All the rules of the previously mentioned incoterms apply to CFR also. The seller however is not responsible for the insurance of the goods

The insurance of the goods is a responsibility of the buyer. Other obligations include payment of goods, customs clearance on arrival and payment of fees. The buyer is also responsible for any other arrival expenditures.

The risk transfers from the seller to the buyer once the goods get loaded on board before the main carriage takes place.
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