CFR (Cost and Freight)
Also called: Cost and Freight · C& F
An Incoterms rule for sea and inland waterway transport under which the seller delivers the goods on board the vessel and pays the freight to the named port of destination, but risk passes to the buyer once the goods are on board at the port of shipment. Unlike CIF, the seller does not have to insure the goods.
In practice
Under CFR the buyer bears the transit risk without the seller's insurance, so the buyer should arrange its own cover; for EU and Turkish customs value, freight is included in the price.
EU
Türkiye
UK
USARelated terms
- Incoterms
- A set of standard three-letter trade terms published by the International Chamber of Commerce that allocate delivery point, risk, costs and customs…
- CIF (valuation basis)
- As a valuation basis, CIF means the price of the goods plus the cost of insurance and transport up to the place where goods enter the customs…
- FOB (valuation basis)
- As a valuation basis, FOB means the value of goods loaded on board at the port of export, without international freight and insurance. The United…
- Customs value
- The value of imported goods on which ad valorem duties are calculated. Almost all countries follow the WTO Customs Valuation Agreement, under which…