CFR

CFR

CFR | CIF | CIP | CPT | DAF | DDP | DDU | DES | DEQ | EXW | FAS | FCA | FOB

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 of or 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.

Incoterms 2000
ICC Publication no. 560 – ISBN 92.842.1199.9
Published in its official English version by the International Chamber of Commerce
Copyright © 1999 – International Chamber of Commerce (ICC)
Available from: ICC Publishing S.A., 38, Cours Albert 1er, 75008 Paris, France, or ICC
Publishing, Inc., 156 Fifth Avenue, Suite 417, New York, NY 10010, USA

Incoterms

“Incoterms” provide a set of international rules for interpreting the most commonly used trade terms in international trade.

The purpose of these terms is to avoid the confusion caused by varying interpretations in different countries. Often parties to a contract are unaware of the unique trading practices in their respective countries. This can give rise to misunderstandings, disputes and litigation, resulting in a waste of time and money.

In order to remedy these problems, the International Chamber of Commerce (ICC) first published a set of international rules for the interpretation of trade terms in 1936. Amendments and additions have been made since then to keep the rules in line with current international practices.

The following preambles neither constitute the full text of Incoterms 2000, nor a summary of them. They only present selected features of Incoterms.