Advantages of CFR for Buyer (Importer)
Are you buying products on CFR delivery terms from your supplier? Learn pros and cons under CFR terms for an importer in international trade. Under this post, we explain about the advantages for buyer under CFR delivery terms.
Here are those 05 edges for a buyer when he contracts CFR delivery terms under Inco terms 2020:
01. One of the main advantages for importer under CFR terms is that the seller pays the cost till the named destination port. So, the importer is free from paying costs till the named place contracted with the exporter in international business.
02. The pre carriage process is on the shoulders of exporter under CFR delivery rules and importer does not want to experience either the cost or risk of pre carriage in international business. This is an advantage for buyer under CFR delivery terms.
03. Another merit for buyer under CFR is that the importer does not want to know and experience the rules and regulations of exporting country on export customs clearance, documentation, customs clearance and export taxes if any as the exporter takes care of them under CFR delivery rules in export import trade.
04. Under CFR delivery terms in export import business, once the goods arrived at importer’s country at the named place contracted, the further movement of goods to his premises is undertaken by him. So he can monitor the shipping tracking till arrival of goods to him. This is another advantage for importer when delivery terms are on CFR basis.
05. Another benefit for buyer is that under CFR deliver terms, since the seller is responsible to undertake export customs clearance and taxes if any, the buyer (importer in export import trade) is free from facing port congestion, vessel shortage, vessel cancellation etc. in exporter’s country.
Okay, hope you have enjoyed reading about this topic on advantages for importer under CFR terms of delivery.
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