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FreightUtils.com
CFR

Cost and Freight

Sea and Inland Waterway Only

Seller pays freight to destination port. Risk transfers when goods are loaded on board at port of shipment.

CFR — Responsibilities & Risk
Seller's Responsibility
Sea freight to named destination port. Export clearance. Loading.
Buyer's Responsibility
Insurance, import clearance, duties, unloading at destination.
Risk Transfer Point
When goods are on board the vessel at port of shipment.
Cost Transfer Point
At named destination port (freight paid by seller).
Insurance Obligation
No obligation on either party.
Export Clearance
Seller.
Import Clearance
Buyer.
Best For
When seller arranges sea freight but buyer handles insurance and destination costs.
Watch Out
Like CPT, risk and cost transfer at different points. Goods are at buyer's risk during sea transit even though seller paid the freight. Buyer should arrange marine insurance.
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