The term Cost and Freight, also known with the abbreviation CFR (C&F), is mainly used in maritime transport. It establishes that the seller must bear all transport expenses until the destination, including possible expenses for unloading the ship, as well as costs for obtaining licences and export documentation from the country of origin and those for export customs operations.The buyer must instead bear the insurance costs while the seller is obligated to communicate promptly all the details that are necessary for the stipulation of the policy against risks.From the moment in which the goods are unloaded in the arrival port, all expenses are to be considered borne by the buyer, including customs costs in the country of arrival.The wording of this delivery term is considered complete with the indication of the destination port (example C.F.R. Barcelona). It is often used inappropriately also when the transport takes place by road or rail, while in the latter cases other terms (CTP) would be preferable.
Categories: Incoterms 2010