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Information International rules and organization Incoterms 2000 [iNKOTERMS 2000] The term C Cost and Freight - CFR

CFR (Cost and Freight (... named port of destination))
Cost and Freight (... named port of destination)

The term "Cost and Freight" means that the seller delivers when the goods pass the ship's rail at 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 or damage to the goods, as well as any additional costs occurring after 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 or inland waterway. If the parties do not intend to deliver the goods across the ship's rail, the CPT term should be used.

THE SELLER

OBLIGATIONS OF THE BUYER

A.1. DELIVERY OF THE GOODS IN ACCORDANCE WITH THE TREATY

B.1. Payment of the price

The seller must, in accordance with the contract of sale provide the goods and the commercial invoice, or its equivalent electronic message, and any other evidence of conformity which may be required by the contract of sale

The buyer must pay provided in the contract of purchase and sale price of the goods.

A.2. Licences, authorizations and formalities

B.2. Licences, authorizations and formalities

The seller must at his own expense and risk any export license or other official authorization and carry out, where applicable, all customs formalities necessary for export of the goods.

The buyer shall at his own expense and risk any import license or other official authorization and carry out, where applicable, all customs formalities for the import of the goods and for their transit 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 at his own expense for the carriage of the goods to the named port of destination by the usual route to the sea (or inland waterway transport) ship of the type normally used for the transport of goods similar to the goods specified in the contract of purchase sale.
B) Contract of insurance
No obligation.

A) Contract of carriage
No obligation.
B) Contract of insurance
No obligation.

A.4. SUPPLY

B.4. Taking delivery

The seller must deliver the goods on board the vessel at the port of shipment on the date or within the agreed period.

The buyer must take delivery of the goods when they have been delivered in accordance with Article A.4. And receive them from the carrier at the named port of destination.

A.5. Transfer of risks

B.5. Transfer of risks

The seller must, subject to the provisions of Article B.5. bear all risks of loss or damage to the goods until the goods pass the ship's rail at the port of shipment.

The buyer must bear all risks of loss or damage to the goods from the moment of transfer of the goods through the ship's rail in the port of shipment. The buyer is obliged to - if he does not fulfill the obligation to give notice in accordance with Article B.7. - bear all risks of loss or damage to the goods from the expiration of the agreed date or the end date of the fixed period of shipment. The condition, however, is the proper conformity of the goods to the contract. This means that the goods must be properly identified, that is, definitely detached or otherwise identified as the commodity that is the subject of this contract.

A.6. Division of costs

B.6. Division of costs

The seller must, subject to the provisions of Article B.6 .: - bear all costs associated with the goods until the time of delivery in accordance with Article A.4., And - pay freight and all costs arising from the article A.3a) costs, including expenses Loading of goods on board the vessel and any costs of unloading the goods at the agreed port of discharge, which are assigned to the seller under the contract of carriage, and - to pay, if required, all costs associated with the performance of customs formalities for export, as well as other duties, taxes And other charges, near Payment for export of goods, as well as costs associated with its transit through third countries in cases where they are assigned to the seller under a contract of carriage.

The buyer must, subject to the provisions of A.3's clauses): - bear all costs associated with the goods from the moment of delivery in accordance with Article A.4., And - bear all costs and charges associated with the goods during its transit transportation to Arrival at the port of destination, except for cases when they are assigned to the seller under the contract of carriage, and - to pay the costs of unloading the goods, including costs for payment of lighter and mooring fees, except when they are vested in the seller under the contract of carriage, and - Carry all Additional costs due to the failure of the duty to give an appropriate notice in accordance with Article B.7. From the expiration of the agreed date or the agreed delivery date. The condition, however, is the proper conformity of the goods to the contract. This means that the goods must be properly identified, that is, definitely detached or otherwise identified as the goods that are the subject of this contract, and - pay, if required, all duties, taxes and other charges, as well as the costs of customs formalities , Payable upon importation of the goods, and, if necessary, for its transit transportation through third countries, if they are not assigned to the seller when signing the contract of carriage.

A.7. Notice to the buyer

B.7. Notice to the seller

The seller must give the buyer sufficient notice that the goods have been delivered in accordance with Article A.4., As well as the buyer to any other notice required for the discharge is usually necessary measures for the receipt of goods.

If the buyer is entitled to determine the time during which the goods have been shipped, and / or destination port - it must properly notify the seller.

A.8. Proof of delivery, transport document or equivalent electronic message

B.8. Proof of delivery, transport document or equivalent electronic message

The seller must immediately provide the buyer at his own expense with the usual transport document issued for the agreed port of destination. This document (for example, a negotiable bill of lading, a non-negotiable sea waybill, proof of carriage by inland waterway transport) should apply to the goods sold, be dated within the period agreed upon for the shipment of the goods and give the buyer the opportunity to receive the goods from the carrier at the port of destination and, Unless otherwise agreed, give the buyer the opportunity to sell the goods to a third party during transit transportation by way of a transfer inscription (negotiable bill of lading) or by notifying the carrier . If several originals of the transport document are issued, the buyer must be provided with a complete set of originals. In the event that the seller and the buyer agree on the use of electronic communications, the above documents may be replaced by equivalent electronic messages (EDI).

The buyer must accept the article A.8. the transport document if it meets the conditions of the contract of sale.

A.9. Checking - packaging - marking

B.9. Inspection of goods

The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) which are necessary for the delivery of goods in accordance with Article A.4. The seller must at his own expense packaging (unless in the particular trade to ship the usual contract goods unpacked) which is required for the transport of goods. Packaging is to be marked appropriately.

The buyer must pay the costs associated with any shipment inspection except when such inspection is mandated by the authorities of the country of export.

A.10. OTHER OBLIGATIONS

B.10. OTHER OBLIGATIONS

The seller must provide the buyer at the request of the latter's expense, risk and every assistance in obtaining any documents or equivalent electronic messages (other than those mentioned in the article A.8.) Issued or transmitted in the country of dispatch and / or country of origin, which the buyer may require for the import of the goods and, if necessary, for their transit through any country. The seller must provide the buyer, at his request with the necessary information for procuring insurance.

The buyer must pay all costs and charges incurred in obtaining the documents or equivalent electronic messages, as provided in Article A.10., And reimburse the seller incurred by the buyer in rendering his assistance.