Define the incoterm CFR.

CFR - Cost and Freight  (named port of destination)

 

“Cost and Freight” means that the seller delivers the goods on board the vessel. The seller pays for freight to transport the goods until the final port of destination. The risk of loss of or damage to the goods passes when the goods are on board the vessel. The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination. Insurance of the goods is met by the buyer in case of C&F transaction.

This term can be used for Sea and Inland water transport only.

 

Obligation and expenses of seller:-

All responsibilities and charges should incur by seller include Warehouse Services, Export packing, assistance in obtaining any exports licence or other official authorisation, loading at point of Origin, Origin Inland Freight, Origin Port Charges, Export Customs clearance, Origin Forwarder Fees, Ocean/Air Freight.

The risk passes to the buyer from the seller when the goods are on board the vessel.

 

Obligation and expenses of Buyer:-

All responsibilities and charges must incurs by Buyer includes Destination Port Charges, Import Customs clearance, Import Duties and Taxes, Delivery cartage to Final Destination.


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