B-6-19- Incoterms © 2010 cfr


CFR: Cost and Freight is one of 11 Incoterms © 2010



Incoterms 2010 ©
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The Incoterms © 2010 CFR is an Incoterm © where the main transport is paid by the exporter.

The Incoterm © CFR 2010 is a category "main carriage unpaid" Incoterm ©

The Incoterm © CFR is used for the maritime transportation.

6-19-1- Summary

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

In contrast to the Incoterms © 2000, there are no longer rail concepts, therefore the transfer of ownership is now on board the ship, i.e. maritime transport.

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

6-19-2- 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. 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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6-19-3- 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.

6-19-4- From the viewpoint of exporter

The exporter is responsible for packaging. The transport fees are charged to the exporter until arrival at the destination port. 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.

6-19-5- Advantages for the exporter

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

6-19-6- The point of ownership transfer: on board the ship.


The risk transfer point is no longer "passing the rail" as in the Incoterms © 2000 CFR version.


6-19-7- Incoterms © CFR 2010 : Distribution of costs and risks

 Description

 Costs

Risks
 Packaging  Exporter  Exporter
 Loading at the factory  Exporter  Exporter
 Pre-transport  Exporter  Exporter
 Export customs  Exporter  Exporter
 Handling on departure  Exporter  Exporter
 Main transport  Exporter  Importer
 Transportation insurance  Exporter  
 Handling on arrival  Importer  Importer
 Import customs  Importer   Importer
 Post-transport  Importer  Importer
 Unloading at the factory  Importer  Importer