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 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. | |
THE SELLER'S OBLIGATIONS |
THE BUYER'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.
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B1 Payment of the price
The buyer must pay the price as provided in the contract of sale.
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A2 Licences, authorisations and formalities
The seller must obtain at his own risk and expense any export licence
or other official authorisation and carry out, where applicable, all customs formalities necessary for the export of
the goods. |
B2 Licences, authorisations and formalities
The buyer must obtain at his own risk and expense any import licence
or other official authorisation and carry out, where applicable, all customs formalities for the import of the goods
and for their transit through any country. |
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 |
B3 Contracts of carriage and insurance
a) Contract of carriage
No obligation
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. |
B4 Taking delivery
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. |
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. |
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, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods. |
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 the
agreed port of discharge which were for the seller's account under the
contract of carriage; and
• where applicable, the costs of customs formalities necessary for export
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. |
B6 Division of costs
The buyer must, subject to the provisions of A3 a), pay
• all costs relating to the goods from the time they have been
delivered in accordance with A4; and
• 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; and
• unloading costs including lighterage and wharfage charges, unless
such costs and charges were for the seller's account under the contract of
carriage; and • 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, however, that the goods
have been duly appropriated to the contract, that is to say, clearly set
aside or otherwise identified as the contract goods; and
• where applicable, all duties, taxes and other charges as well as the
costs of carrying out customs formalities payable upon import of the goods
and, where necessary, for their transit through any country unless
included within the cost of 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. |
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. |
A8 Proof of delivery, transport document or equivalent
electronic message
The seller must at his own expense provide the buyer without delay
with the usual transport document for the agreed port of destination.
This document (for example a negotiable bill of lading, a
non-negotiable sea waybill or 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 a subsequent buyer (the negotiable bill of
lading) 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.
Where the seller and the buyer have agreed to communicate
electronically, the document referred to in the preceding paragraphs may
be replaced by an equivalent electronic data interchange (EDI) message.
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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. |
A9 Checking - packaging - marking
The seller must pay the costs of those checking operations (such as
checking quality, measuring, weighing, counting) which are necessary for
the purpose of delivering the goods in accordance with A4.
The seller must provide at his own expense packaging (unless it
is usual for the particular trade to ship the goods of the contract
description unpacked) which is required for the transport of the goods
arranged by him. Packaging is to be marked appropriately. |
B9 Inspection of 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. |
A10 Other obligations
The seller must render the buyer at the latter's request, risk and
expense, every assistance in obtaining any 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 through any country.
The seller must provide the buyer, upon request, with the
necessary information for procuring insurance. |
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
those incurred by the seller in rendering his assistance in accordance
therewith. |
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