Information International rules and organizations Incoterms 2010 [iNKOTERMS 2010] CFR - Cost and Freight - Cost and Freight

CFR

INCOTERMS 2010

COST AND FREIGHT [... named port of destination]
COST AND FREIGHT [... named port of destination]

This term is to be used only for maritime or inland waterway transport.
"Cost and Freight" means that the seller delivers the goods on board or delivers the goods so delivered. The risk of loss or damage to the goods passes when the goods are on board. The seller must contract and pay all costs and freight necessary to bring the goods to the named port of destination.
When using the terms CPT, CIP, CFR or CIF, the seller fulfills his obligation to deliver when he hands over the goods to the carrier and not when the goods have reached their destination.
This term contains two critical points, as risk and cost are transferred in two different places. While the contract always specifies the port of destination, it may not specify the port of shipment when the risk passes to the buyer. If the port of shipment is of particular interest to the buyer, the parties are advised to specify it as clearly as possible in the contract.
The parties are also encouraged to identify as precisely as possible the point at the agreed port of destination, as the costs up to that point are borne by the seller. The seller is advised to provide contracts of carriage that accurately reflect this choice. If the seller, under his contract of carriage, bears the costs of unloading at the agreed point at the port of destination, the seller is not entitled to claim from the buyer reimbursement of such costs, unless otherwise agreed by the parties.
The seller must either deliver the goods on board the ship or ensure that the goods so delivered are made available at the place of destination. In addition, the seller must either conclude a contract of carriage or secure such a contract. The reference to the obligation to "provide" takes into account the many chain sales that are often used in the trading of commodities.
CFR may not be appropriate when the goods are handed over to the carrier prior to being placed on board the vessel, such as goods in containers, as is typical for delivery to a terminal. In such situations, it is appropriate to use the term CPT.
CFR requires the seller to complete customs formalities for export, if applicable. However, the seller is not required to carry out import customs formalities, pay import duties or carry out other import customs formalities.

RESPONSIBILITIES OF THE SELLER

BUYER'S RESPONSIBILITIES

A.1. General obligations of the seller

B.1. General obligations of the buyer

The seller is obliged, in accordance with the contract of sale, to provide the buyer with the goods, the commercial invoice, as well as any other evidence of compliance of the goods with the terms of the contract of sale, which may be required by the terms of the contract.
Any document referred to in paragraphs A1-A10 may be replaced by an equivalent electronic record or procedure if agreed by the parties or is customary.

The buyer is obliged to pay the price of the goods, as stipulated in the contract of sale.
Any document referred to in paragraphs B1-B10 may be in the form of an equivalent electronic record or other procedure if agreed by the parties or is customary.

A.2. Licenses, permits, security controls and other formalities

B.2. Licenses, permits, security controls and other formalities

If required, the seller must, at his own expense and risk, obtain an export license or other official authorization and carry out all customs formalities necessary for the export of the goods.

If required, the buyer must obtain at his own risk and expense an import license or other official authorization and carry out all customs formalities necessary for the importation of the goods and their transportation through any country.

A.3. Contracts of carriage and insurance

B.3. Contracts of carriage and insurance

a) Contract of carriage
The seller must contract or cause to be contracted for the carriage of the goods from the named point of delivery, if any, from the place of delivery to the named port of destination or, if agreed, to any point in such port. The contract of carriage must be at the seller's expense, under normal terms and conditions, and provide for carriage in the usual direction on a vessel of the type normally used for the carriage of the goods sold.
b) Insurance contract
The seller has no obligation to the buyer to conclude an insurance contract. However, the seller must provide the buyer, at his request, at his own risk and expense (if any), with the information necessary for the buyer to obtain insurance.

a) Contract of carriage
The buyer has no obligation to the seller to conclude a contract of carriage.
b) Insurance contract
The buyer has no obligation to the seller to conclude an insurance contract. However, the buyer is obliged to provide the seller, at his request, with the necessary information to secure insurance.

A.4. Supply

B.4. Delivery Acceptance

The seller is obliged to deliver the goods either by placing them on board the vessel or by providing the goods so delivered. In either case, the seller must deliver the goods on the agreed date or within the agreed period and in the manner customary for the port concerned.

The buyer must take delivery of the goods as soon as they have been delivered in accordance with A4 and take delivery of the goods from the carrier at the named port of destination.

A.5. Transfer of risk

B.5. Transfer of risk

The seller bears all risks of loss or damage to the goods until they have been delivered in accordance with paragraph A4, except for the risks of loss or damage in the circumstances specified in paragraph B5.

The buyer bears all risks of loss of or damage to the goods from the moment of delivery in accordance with paragraph A4.
If the buyer fails to comply with the obligation to give notice in accordance with paragraph B7, he shall bear all risks of loss of or damage to the goods from the date agreed or from the date on which the agreed delivery period has expired, provided that the goods have been clearly identified as the goods that are the subject of contracts.

A.6. Cost allocation

B.6. Cost allocation

The seller must pay:
(a) all costs relating to the goods up to the time of delivery in accordance with paragraph A4, with the exception of costs payable by the buyer, as provided in paragraph B6; And
b) freight and other costs referred to in paragraph A3 a), including the costs of loading the goods on board the ship and any charges in connection with the unloading of the goods at the agreed port of discharge, which are borne by the seller under the contract of carriage; And
c) if required, the costs of carrying out customs formalities necessary for the export of the goods, as well as duties, taxes and fees payable upon export, as well as the costs of its transportation through any country, if they are assigned to the seller under the terms of the contract of carriage.

The buyer must, subject to the provisions of paragraph A3 a), pay:
a) all costs relating to the goods from the moment they are delivered in accordance with paragraph A4, except, if required, the costs of carrying out customs formalities for the exportation of the goods, as well as taxes, duties and other expenses payable upon exportation, as provided in paragraph A6 c);
b) all costs and charges relating to the goods during transit until their arrival at the agreed port of destination, unless such costs and charges are charged under the contract of carriage to the seller;
c) unloading costs, including lightering and mooring dues, unless such costs are attributable to the seller under the contract of carriage;
d) any additional costs incurred as a result of the seller's failure to give notice in accordance with paragraph B7, from the agreed date or from the date of expiration of the agreed period for shipment, provided that the goods have been clearly identified as the goods that are the subject of the contract;
e) if required, the costs of paying taxes, duties and other official charges, as well as the performance of customs formalities payable upon importation of the goods, and the costs of transporting them through any country, unless such costs and charges are charged under the contract of carriage to seller.

A.7. Buyer Notices

B.7. Seller notices

The seller must give the buyer adequate notice enabling the buyer to take the steps normally necessary to enable him to take delivery of the goods.

If the buyer is entitled to determine the time for shipment of the goods and/or the place of receipt of the goods at the named port of destination, he must give the seller due notice of this.

A.8. Delivery Document

B.8. Proof of delivery

The seller must, at his own expense, promptly provide the buyer with the usual transport document to the agreed port of destination.
Such a transport document must cover the goods under the contract and be dated within the agreed shipping period, give the buyer the right to claim the goods from the carrier at the port of destination and, unless otherwise agreed, allow the buyer to sell the goods during the period in transit by delivering the document to a subsequent buyer or by notifying the carrier. .
If the transport document is negotiable and issued in several originals, the full set of originals must be handed over to the buyer.

The buyer must accept the transport document issued in accordance with paragraph A8 if it is in accordance with the contract.

A.9. Inspection, packaging, labeling

B.9. Goods Inspection

The seller must bear all costs associated with the verification of the goods (quality control, measurement, weighing, counting) necessary for the delivery of the goods in accordance with paragraph A4, as well as the costs of pre-shipment inspection of the goods, which is prescribed by the authorities of the country of export.
The seller is obliged at his own expense to ensure the packaging of the goods, except in cases where it is customary in the given branch of trade to ship the goods specified in the contract without packaging. The seller may pack the goods in such a way as is necessary for their carriage, unless the buyer notifies the seller of specific packaging requirements prior to the conclusion of the contract. The labeling of the packaged goods must be carried out properly.

The buyer is obliged to bear the costs of mandatory inspection of the goods before shipment, unless such inspection is carried out under the instructions of the authorities of the country of export.

A.10. Assistance in obtaining information and related costs

B.10. Assistance in obtaining information and related costs

If required, the seller must promptly provide the buyer or assist the buyer in obtaining, at the buyer's request, at his risk and expense, documents and information, including security information, that the buyer may need to import the goods and / or transport them to the final destination. destination.
The seller must reimburse the buyer for all costs and fees incurred by the buyer in obtaining or assisting in obtaining documents and information as provided in paragraph B10.

The buyer must notify the seller of the security information requirements in a timely manner so that the seller can act in accordance with paragraph A10.
The buyer must reimburse the seller for the costs and fees incurred by him in providing or facilitating the receipt of documents and information, as provided in paragraph A10.
If required, the buyer must promptly provide the seller or assist the seller in obtaining, at the seller's request, at his own risk and expense, documents and information, including security information, that the seller may need to transport, export the goods and for their transportation through any country.

 
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