B-6-6- Incoterms © 2000 cfr


CFR: Cost and Freight is one of 13 Incoterms © 2000



Incoterms 2000 ©
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The Incoterms © CFR 2000 is an Incoterm © where the main transport is paid by the exporter.

The Incoterms © CFR 2000 is a category "main carriage unpaid" Incoterm ©

The Incoterms © CFR 2000 is used for the maritime transportation.

6-6-1- Summary

The risks of goods loss or damage (and other costs) are transfered from the exporter to the importer at the port of embarkation.

The two parties can agree to consider the goods as delivered once they have passed the ship's rail.

Maritime insurance is not required by the importer nor exporter, in contrast to the 2000 Incoterms © CIF.

6-6-2- From the viewpoint of the importer

This Incoterms © is an Incoterms © used for both maritime and inland waterway transportation. The transportation costs are borne by the importer. The importer is responsible for the physical unloading, but not the associated fees. Risk transfer for maritime transport: as soon as goods are loaded onboard the ship when they passe the ship's rail. The import customs must be paid by the importer. For maritime transport, risk is transferred as soon as the goods are loaded to the ship. The importer is not obligated to have insurance.
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6-6-3- Advantages for the importer

The importer handles the unloading and customs clearance in its own country. The importer does not, however, pay the associated costs of unloading. Extensive knowledge of the stakeholders leads to higher-quality services and beneficial prices.

6-6-4- From the viewpoint of exporter

The exporter is responsible for packaging. He also takes in charge the transport payment up until the named destination port, when the goods passe the ship's rail. It is the main transport. The exporter is responsible for loading the goods on to the ship and the dispatch formalities. The importer receives the goods at the identified port, with no obligation to take out insurance. The exporter is responsible for goods clearance.

6-6-5- Advantages for the exporter

This Incoterm © is of interest to the exporter that lacks logistical capabilities in its own country.

6-6-6- The point of ownership transfer: on board the ship.


The risk transfer takes place "passing the ship's rail". As soon as the transport document is accepted.


6-6-7- Incoterms © CFR 2000 : Distribution of costs and risks

 Description

 Costs

Risks
 Packaging  Exporter  Exporter
 Choice of carrier  Exporter up until the ship  Exporter
 Pre-transport  Exporter  Exporter
 Loading  Exporter  Exporter
 Costs of loading  Exporter  Exporter
 Unloading  Importer  Importer
 Costs of unloading  Exporter if included in the freight  Importer
 Transport payment  Exporter up until the destination port  Importer Main carriage
 Insurance payment  Importer  "passing the ship's rail", (no maritime insurance)  
 Import customs fees  Importer   Importer
 Export customs fees  Exporter  Exporter
 Post-transport  Importer  Importer