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Information International rules and organization 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 sea or inland waterway transport.
"Cost and Freight" ("Cost and Freight") means that the seller delivers the goods on board the ship or provide such goods delivered. The risk of loss or damage to the goods passes when the goods are on board. The seller must sign the contract and pay the costs and freight necessary to bring the goods to the named port of destination.
When using the term CPT, CIP, CFR or CIF the seller fulfills his obligation to deliver when it hands the goods over to the carrier, and not when the goods reached their destination.
This term has two critical points, as the risk and expense go into two different places. While the contract is always determined by the destination port, may still not be specified port of shipment when the risk passes to the buyer. If the port of shipment is of special interest to the buyer, the parties are advised to define it more clearly in the contract.
Parties are also encouraged by the possibility of more accurately determine the point at the named port of destination, as the costs to this point is the seller. Seller recommended that contracts of carriage, which accurately reflect this choice. If the seller is in his contract of carriage bears the costs of discharge to the agreed point at the port of destination, the seller is not entitled to claim compensation from the purchaser of such costs, unless otherwise agreed by the parties.
The seller must deliver the goods, or on board ship, or cause to be delivered in such a way to provide the goods at destination. In addition, the seller must either enter into a contract of carriage, or to provide such a contract. The reference to the obligation to "provide" at numerous sales for the chain, which are often used in commodity trading.
CFR may not be appropriate when the goods to the carrier prior to its placement on the board, for example goods in containers, which is typical for delivery to the terminal. In such situations, it is advisable to use the term CPT.
CFR requires the seller to customs formalities for export, if any. However, the seller is not obliged to carry out customs formalities for import, pay import duties or perform other customs formalities for the import.

THE SELLER

OBLIGATIONS OF THE BUYER

A.1. General obligations of the seller

B.1. General obligations of the buyer

The seller must, in accordance with the contract of purchase and sale provide the goods and the commercial invoice, the invoice, as well as any other evidence of conformity conditions of the contract of sale, which may be required by 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 common.

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

A.2. Licenses, permits, security checks and formalities

B.2. Licenses, permits, security checks and formalities

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

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

A.3. carriage and insurance

B.3. carriage and insurance

a) Contract of carriage
The seller must contract or procure a contract of carriage of goods from a named point of delivery, if it is defined, from the place of delivery to the named port of destination, or, if agreed, to any point in that port. The contract of carriage must be made by the seller, on the usual conditions and provide for carriage by generally accepted direction of the ship of the type normally used for the transport of goods sold.
b) Contract of insurance
The seller no duty to the buyer under a contract of insurance. However, the seller must provide the buyer, at his request, at his risk and expense (if any costs), the information necessary for the buyer of insurance.

a) Contract of carriage
The buyer has no obligation to the seller to conclude a contract of carriage.
b) Contract of insurance
The buyer has no obligation to the seller to make a contract of insurance. However, the buyer must provide the seller, upon request, provide the necessary information for insurance.

A.4. Supply

B.4. Taking delivery

The seller must deliver the goods, either by placing it on the board or by providing goods delivered that way. In this and in another case, the seller must deliver the goods on the date or within the agreed period and in a manner that is typical for this port.

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

A.5. Transfer of risks

B.5. Transfer of risks

Seller shall bear all loss or damage to the goods until it is delivered in accordance with paragraph A4, with the exception of the risks of loss or damage in the circumstances referred to in paragraph B5.

The buyer bears all risks of loss or damage to the goods from the moment of delivery in accordance with paragraph A4.
At default by the buyer obligations to provide notification in accordance with paragraph B7, he shall bear all risks of loss or damage to the goods from the agreed date or the date on which expired the agreed delivery period, provided that the goods were explicitly individualized as a commodity, which is the subject agreement.

A.6. Division of costs

B.6. Division of costs

The seller must pay:
a) all costs relating to the goods until they have been delivered in accordance with paragraph A4, except for expenses payable by the purchaser as provided in paragraph B6; and
b) Freight and other specified in paragraph A3 a), including the costs of loading the goods on board and any charges in connection with the unloading of the goods at the agreed port of discharge which the contract of carriage charged to the seller; and
c) if necessary, the costs of customs formalities necessary for the export of goods, as well as duties, taxes and charges payable on the export as well as the costs of its transport through any country if they are on the carriage charged to the seller.

The buyer must, subject to the provisions of paragraph A3 a), pay:
a) all costs relating to the goods upon delivery in accordance with paragraph A4, except if it is required, the costs of customs formalities necessary for the export of goods, as well as taxes, fees and other charges payable upon exportation, as provided in A6 paragraph c);
b) all related product costs and fees in transit until their arrival at the agreed port of destination, unless such costs and charges do not apply under the contract of carriage for the seller;
c) the discharge, including lighterage and wharfage charges, unless such costs are charged to the seller under the contract of carriage;
d) any additional costs incurred as a result of failure to give notice to the seller in accordance with paragraph B7, from the agreed date or the expiry of the agreed period for shipment, provided that the goods were explicitly individualized as a commodity, which is the subject of the contract;
e) if necessary, the cost of the payment of taxes, duties and other official charges as well as for the implementation of customs formalities payable upon import of the goods and the cost to transport it through any country unless such costs and charges do not apply under the contract of carriage on Seller.

A.7. Notice to the buyer

B.7. Notice to the seller

The seller must provide the buyer proper notice, allowing the buyer to take steps normally required in order that he may carry out acceptance of the goods.

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

A.8. Document delivery

B.8. Proof of delivery

The seller must at his own expense in a timely manner to provide the buyer with the usual transport document to the agreed port of destination.
Such transport document should cover the goods under the contract and be dated within the agreed period of shipment, to provide the buyer the right to claim the goods from the carrier at the port of destination and, unless otherwise agreed, enable the buyer to sell the goods during transit through the transfer of subsequent buyer or by notification to the carrier .
If the transport document is negotiable and issued in several originals, a buyer must be a full set of originals.

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

A.9. Checking, packaging, labeling

B.9. Inspection of goods

The seller must pay all costs associated with checking (checking quality, measuring, weighing, counting) which are necessary for the delivery of goods in accordance with paragraph A4, as well as the costs of inspection of goods before shipment, which is prescribed by the authorities of the exporting country.
The seller must at his own expense packaging of goods, except in cases when the particular trade is usually taken to ship specified in the contract goods unpacked. The seller can pack the goods in such a way as is necessary for its transportation, unless the buyer before the contract does not notify the seller of specific packaging requirements. Marking packaged goods must be carried out properly.

The buyer must pay the costs for the mandatory inspection of goods prior to shipment, except when such inspection is carried out by order of the authorities of the exporting country.

A.10. Assistance in obtaining information and relating to this expenditure

B.10. Assistance in obtaining information and relating to this expenditure

If need be, the seller is obliged to provide the purchaser or to assist him in obtaining, at the request of the buyer, at his risk and expense, documents and information, including important safety information, which may require the buyer to the goods import and / or transport it to the final destination.
The seller is obliged to compensate the buyer for all costs and charges incurred by the buyer in obtaining or assisting in obtaining documents and information as provided for in paragraph B10.

The buyer must notify the seller in a timely manner the requirements with regard to safety information, so that the seller could act in accordance with paragraph A10.
The buyer must reimburse the seller incurred by him costs and charges for providing or rendering assistance in obtaining documents and information as provided for in paragraph A10.
If required, the buyer is obliged to provide the seller or facilitate in the seller receiving, at the request of the seller, at his risk and expense, documents and information, including important safety information, which may require the seller to transport, export of goods and for their transport through any country.