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CFR (Cost and Freight)

This information is provided by:Netherlands Chamber of Commerce, KVKNetherlands Chamber of Commerce, KVK
Incoterms CFR

CFR is an appropriate Incoterms® rule for transport of bulk and general cargo by water. The transfer of costs and risk takes place at different times.

Seller arranges and pays for:

  • All transport up to agreed port of destination.
  • Export formalities and export documents.

Buyer arranges and pays for:

  • Unloading at port of destination, if nothing else was agreed in the contract of carriage.
  • Transport from the agreed port of destination to final destination.
  • Import formalities and local import documents.

Suitable for:

  • Trade within and outside the EU.
  • Transport of bulk and general cargo by ship.
  • Payment via Letter of Credit or documentary collection.

Not or less suitable for:

  • Container transport, as the containers cannot be opened to check whether the seller has delivered correctly.
  • Transport by air, road, or rail.

Transfer of risk from seller to buyer:

  • Once seller delivers the goods on board the vessel at departure port, as with FOB. Buyer carries risk during sea transport.

Points of attention:

  • Only intended for transport by water.
  • The transfer of costs (port of arrival) and risk (port of departure) take place at different times.
  • Agree upon the exact location at the port of destination.

Read more about CFR.

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