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CFR is a term in the Incoterms 2020 that means the seller delivers the goods when they are on board and cleared for export, and pays for freight until the final port of destination. The buyer pays for import clearance, insurance, and other costs until the goods are received. Learn the details of CFR, its application, and the obligations of the seller and the buyer in this web page.
- What Is Cost and Freight (CFR)?
- Understanding Cost and Freight
- Similar Incoterms to Cost and Freight
- The Bottom Line
Cost and freight (CFR) is a legal term used in foreign trade contracts. In a contract specifying that a sale is cost and freight, the selleris required to arrange for the carriage of goods by sea to a port of destination and provide the buyer with the documents necessary to obtain them from the carrier. With a cost and freight sale, the seller is n...
Contracts involving international transportation often contain abbreviated trade terms that describe matters such as the time and place of delivery; payment; the conditions under which the risk of loss shifts from the seller to the buyer; and specifying the party responsible for the costs of freight and insurance. If a buyer and a seller agree to i...
For goods transported internationally by sea or inland waterways, there are three other Incoterms that are closely related to CFR and are frequently used in trade contracts. 1. Free alongside ship (FAS)means that the seller only has to deliver the cargo to the port next to the vessel, and responsibility for the goods shifts to the buyer at that poi...
Cost and freight (CFR), an Incoterms rule that’s applicable only tocargo transported by sea or inland waterways, puts a fair bit of responsibility on the shoulders of both the buyer and the seller. Under these agreements, which are fairly common in international trade, the seller is responsible for all the planning and costs associated with exporti...
Learn the basics of the Cost and Freight (CFR) rule, which is used for goods transported by sea or inland waterway. Find out the seller's obligations, risks and responsibilities under this rule, and how it differs from other Incoterms rules.
A 16-page guide on the Cost and Freight (CFR) Incoterms® 2020 Rule, to be used in conjunction with The International Chamber of Commerce’s (ICC) new book, INCOTERMS® 2020. This short guide provides an article by article commentary on the Cost and Freight Incoterms® Rule.
CFR Incoterm means the seller delivers the goods to the port of destination and pays the freight costs, but not the insurance. Learn when to use CFR, what are the seller and buyer's responsibilities, and why it is not suitable for containerized cargo.
People also ask
What is the difference between CFR and other Incoterms ?
What are the duties and obligations of CFR Incoterms?
What are the different types of Incoterms?
Learn the basics of CFR shipping terms, which require the seller to clear, deliver, and pay for the goods until they reach the named port of destination. Find out the obligations and risks of both seller and buyer under CFR terms, and the difference between CFR and CPT terms.
Jun 29, 2020 · CFR stands for "Cost and Freight", one of the four Incoterms® rules that specify the seller's and buyer's responsibilities for the risks and costs of a delivery. Learn how CFR works, its difference from FOB, and its updates in 2010 and 2020.
