| CFR, cost and
freight "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. |
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| A |
The seller’s obligations |
B |
The buyer’s obligations |
|
| A1 |
Provision of goods in
conformity with the contract |
B1 |
Payment of the price |
|
| |
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. |
|
The buyer must pay the price as
provided in the contract of sale. |
|
| A2 |
Licences, authorisations and
formalities |
B2 |
Licences, authorisations and
formalities |
|
| |
The seller must obtain at his
own risk and expense any export applicable or other official authorisation and carry out,
where applicable, all customs formalities necessary for the export of the goods. |
|
The buyer must obtain at his
own risk and expense any import licence or other official authorisation and carry out,
where applicable, al customs formalities for the import of the goods and for their transit
through any country. |
|
| A3 |
Contracts of carriage and
insurance |
B3 |
Contracts of carriage and
insurance |
|
| |
- 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.
- Contract of
insurance.
No
obligation. |
|
- contract of
carriage
No
obligation.
- Contract of
insurance.
No
obligation. |
|
| A4 |
Delivery |
B4 |
Taking delivery |
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| |
The seller must deliver the
goods on board the vessel at the port of shipment on the date or within the agreed period. |
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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 |
B5 |
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. |
|
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 |
B6 |
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. |
|
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 |
B7 |
Notice to the seller |
|
| |
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 take measures which are normally necessary to enable him
to take the goods. |
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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. |
B8 |
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 transmit 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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The buyer must accept the
transport document in accordance with A8 if it is in conformity with the contract. |
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| A9 |
Checking – packaging
– marking |
B9 |
Inspection of goods |
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| |
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. |
|
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 |
B10 |
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 an/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. |
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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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