Incoterms CFR

Cost and Freight (named port of destination)

Applies to:       Sea and inland waterway  Sea and inland waterway only

Incoterms CFR Shipping
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Cost and Freight requires the seller to clear the goods for export, deliver them onboard the ship at the port of departure and pay for the transport of the goods to the named port of destination. The risk passes from seller to buyer when the goods are delivered onboard the ship.

The buyer is responsible for paying all additional transport costs from the port of destination as well as import clearance and duties.

CFR is used for ocean or inland waterway transport only.

If the freight is containerized and delivered only to the terminal, the use of CPT is recommended.

   The transfer of risk from seller to buyer occurs at a different point than the transfer of cost.


CFR Shipping Obligations

Seller’s Obligations

  • Goods, commercial invoice and documentation
  • Export packaging and marking
  • Export licenses and customs formalities
  • Pre-carriage and delivery
  • Loading charges
  • Delivery at named port of destination
  • Proof of delivery

Buyer’s Obligations

  • Risk starting onboard ship
  • Discharge and onward carriage
  • Import formalities and duties
  • Cost of pre-shipment inspection

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