IncoTerms > CFR
COST AND FREIGHT (....named port of destination)
"Cost and Freight" means that the seller delivers when the goods pass the ship's rail in the port of shipment.
The seller must pay the costs and freight necessary to bring the goods to the named port of destination but the risk of loss or of damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer.
The CFR term requires the seller to clear the goods for export.
This term can be used only for sea and inland waterway transport. If the parties do not intend to deliver the goods across the ship's rail, the CPT term should be used.
A THE SELLER'S OBLIGATIONS
A1 Provision of goods in conformity with the contract
The seller must provide the goods and the commercial invoice or its equivalent electronic message, in conformity with the contract of sale and any other evidence of conformity which may be required by the contract.
A2 Licences, authorizations and formalities
The seller must obtain at his own risk and expense any export licence or other official authorization and effect, where applicable, all customs formalities necessary to export the goods.
A3 Contracts of carriage and insurance
a) Contract of carriage
The seller must contract on usual terms at his own expense for the carriage of the goods to the named port of destination by the usual route in a seagoing vessel or inland waterway vessel as the case may be, of the type normally used for the transport of goods of the contract description.
b) Contract of insurance
No obligation
A4 Delivery
The seller must deliver the goods on board the vessel at the port of shipment on the date or within the agreed period.
A5 Transfer of risks
The seller must, subject to the provisions of B5, bear all risks of loss of or damage to the goods until such time as they have passed the ship's rail at the port of shipment.
A6 Division of costs
The seller must, subject to the provisions of B6, pay
- all costs relating to the goods until such time as they have been delivered in accordance with A4 and
- the freight and all other costs resulting from A3 a), including the costs of loading the goods on board and any charges for unloading at he agreed port of discharge which were for the seller's account under the contract of carriage; and
- where applicable, the costs of customs formalities as well as all duties, taxes, and other charges payable upon export, and for their transit through any country if they were for the seller's account under the contract of carriage.
A7 Notice to the buyer
The seller must give the buyer sufficient notice that the goods have been delivered in accordance with A4 as well as any other notice required in order to allow the buyer to take measures which are normally necessary to enable him to take the goods.
A8 Proof of delivery, transport document or equivalent electronic message
The seller must provide the buyer without delay and at his own expense with the usual transport document for the agreed port of destination.
This document (a negotiable bill of lading, a non-negotiable sea waybill, an inland waterway document) must cover the contract goods, be dated within the period agreed for shipment, enable the buyer to claim the goods from.the carrier at the port of destination and, unless otherwise agreed, enable the buyer to sell the goods in transit by the transfer of the document to another buyer or by notification to the carrier.
When such a transport document is issued in several originals, a full set of originals must be presented to the buyer.
When the seller and the buyer have agreed to communicate electronically, the document referred to may be replaced by an equivalent electronic data interchange (EDI) message.
A9 Checking- packaging- marking
The seller must pay the costs of those checking operations such as checking quality, measuring, weighing etc., which are necessary for the purpose of delivering the goods
The seller must provide at his own expense packaging which is required for the transport of the goods arranged by him. Packaging is to be marked appropriately.
A10 Other obligations
The seller must render the buyer at the buyer's request, risk and expense, every assistance to obtain documents or equivalent electronic messages (other than those mentioned in A8) issued or transmitted in the country of shipment and/or of origin which the buyer may require for the import of the goods and, where necessary, for their transit via any country.
The seller must provide the buyer, upon request, with the necessary information for insurance purposes.
B THE BUYER'S OBLIGATIONS
B1 Payment of the price of the goods
The buyer must pay the price of the goods as agreed in the contract of sale.
B2 Licences, authorizations and formalities
The buyer must obtain at his own risk and expense any import licence or other official authorization and fulfill, where applicable, all customs formalities for the import of the goods and for their transit through any country.
B3 Contracts of carriage and insurance
a) Contract of carriage
No obligation.
b) Contract of insurance
No obligation.
B4 Taking delivery of the goods
The buyer must accept delivery of the goods when they have been delivered in accordance with A4 and receive them from the carrier at the named port of destination.
B5 Transfer of risks
The buyer must bear all risks of loss of or damage to the goods from the time they have passed the ship's rail at the port of shipment.
The buyer must, should he fail to give notice in accordance with B7, bear all risks of loss of or damage to the goods from the agreed date or the expiry date of the period fixed for shipment, provided that the goods have been duly appropriated to the contract, i. e. clearly set aside or otherwise identified as the contract goods.
B6 Division of costs
The buyer must, subject to the provisions of A3 a), pay :
-all costs related with the goods from the time they have been delivered in accordance with A4,
-all costs and charges relating to the goods whilst in transit until their arrival at the port of destination, unless such costs and charges were for the seller's account under the contract of carriage,
-unloading costs including lighterage and wharfage charges unless such costs and charges were for the seller's account under the contract of carriage,
- all additional costs incurred if he fails to give notice in accordance with B7, for the goods from the agreed date or the expiry date of the period fixed for shipment provided that the goods have been duly appropriated to the contract, i. e. clearly set aside or otherwise identified as the contract goods.
-Where applicable, all duties, taxes and any other charges as well as the costs of carrying out customs formalities payable upon import of the goods and for their transit via any country unless included within the cost of the contract of carriage..
B7 Notice to the seller
The buyer must, whenever he is entitled to determine the time for shipping the goods and/or the port of destination, give the seller sufficient notice thereof.
B8 Proof of delivery, transport document or equivalent electronic message
The buyer must accept the transport document in accordance with A8 if it is in conformity with the contract.
B9 Inspection of the goods
The buyer must pay the costs of any pre-shipment inspection, except when such inspection is mandated by the authorities of the country of export.
B10 Other obligations
The buyer must pay all costs and charges incurred in obtaining the documents or equivalent electronic messages mentioned in A10 and reimburse costs and charges paid by the seller in assisting him in accordance therewith.