1. Introduction of CFR terminology
CFR means cost and freight (...)Named port of destination)
CFR means cost and freight (...)Named port of destination)
CFR refers to the delivery of goods over the ship's rail by the seller at the port of loading, and the seller must pay the freight and charges required to transport the goods to the named port of destination。However, the risk of loss of or damage to the goods after delivery, as well as any additional costs due to various events, is passed from the seller to the buyer。
The CFR term requires the seller to clear the export customs。
The term applies only to sea or inland waterway transport。If the parties do not intend to deliver over the ship's rail, the CPT term should be used。
A Seller's obligations
B Buyer's Obligations
A1 Supply the goods in accordance with the contract
The Seller must provide the goods in conformity with the Contract of Sale and the commercial invoice or equivalent electronic message, as well as any other proof of conformity that may be required by the contract。
B1 Payment of price
The buyer must pay the price in accordance with the sales contract。
A2 Permits, other permits and procedures
The seller must, at his own risk and expense, obtain any export license or other official permission and, if necessary, complete all customs formalities necessary for the goods to be exported。
B2 Licenses, other permits and procedures
The buyer must, at his own risk and expense, obtain any import license or other official permission and, if necessary, complete all customs formalities for the import of goods and transit from other countries。
A3 Contracts of carriage and insurance
a) Contract of carriage
The Seller must, at his own expense, conclude a contract of carriage on the usual terms and conditions and transport the goods to the named port of destination via the customary route on a seagoing vessel normally available for the type of goods referred to in the contract of carriage (or such vessel suitable for inland waterway transport as the case may be)。
b) No obligation under the insurance contract。
B3 Transport Contract and insurance contract
a) No obligation under the contract of carriage。
b) No obligation under the insurance contract。
A4 delivery
The seller must deliver the goods to the ship at the port of loading within the agreed date or time limit。
B4 Take delivery of goods
The buyer must take delivery of the goods upon delivery by the Seller in accordance with A4 and receive the goods from the carrier at the named port of destination。
A5 Risk transfer
Subject to the provisions of B5, the Seller shall bear all risks of loss or damage to the goods until they have crossed the ship's rail at the port of loading。
B5 Risk transfer
The buyer must bear all risks of loss or damage to the goods after they have crossed the ship's rail at the port of loading。
If the Buyer fails to give notice to the Seller in accordance with B7, the Buyer shall bear all risks of loss of or damage to the goods from the agreed date of shipment or the expiry of the shipment period, provided that the goods have been duly assigned to the Contract, that is, clearly delineated or otherwise identified as the goods under the Contract。
A6 Cost division
Except as specified in B6，The seller must pay all expenses in connection with the goods，Until delivery has been made in accordance with A4;And freight and all other expenses incurred in accordance with A3a)，Including the loading charges of the goods and any charges paid by the seller under the contract of carriage at the agreed port of discharge;And when customs formalities are required，Customs fees required for the export of goods and all duties, taxes and other fees payable at the time of export，And if according to the contract of carriage，The cost of transit of goods from another country paid by the seller。
B6 Cost division
Except as specified in A3a)，The Buyer must pay all costs from the time of delivery in accordance with A4;And all charges incurred during transit until the arrival of the goods at the port of destination，Unless such charges shall be paid by the Seller under the contract of carriage;And discharging charges including lightering charges and dock charges，Unless such charges shall be paid by the Seller under the contract of carriage;And if the Buyer fails to give notice to the Seller in accordance with B7，From the agreed date of shipment or the expiry date of the shipment period，All additional costs incurred for the goods，However, the goods have been duly assigned to the contract，To the extent that they are clearly marked out or otherwise identified as the goods under the contract;And when customs formalities are required，All duties, taxes and other charges payable on the importation of goods，And customs fees，And the cost of transit from other countries when needed，Unless these costs have been included in the contract of carriage。
A7 Notify the buyer
The Seller must give the Buyer sufficient notice that the goods have been delivered in accordance with A4, and any other notice required, to enable the Buyer to take such measures as are normally necessary to take delivery of the goods。
B7 Notify the seller
Once the Buyer has the right to decide the time and/or port of destination for shipment of the goods, the Buyer must give the Seller adequate notice in this regard。
A8 Delivery certificate
The Seller must, at his own cost and without delay, provide the Buyer with the usual transport documents indicating the carriage to the agreed port of destination。
This document (e.g. negotiable bill of lading, non-negotiable sea waybill or inland waterway transport document) must contain the contract goods，The date shall be within the agreed period of shipment，Enable the buyer to take delivery of the goods from the carrier at the port of destination，Unless otherwise agreed，The buyer shall be enabled to transfer documents (negotiable bills of lading) or to notify the carrier，Sale of goods in transit to subsequent buyers。
Where there are several originals of the transport document, the full set of originals shall be provided to the buyer。
If the buyer and seller agree to communicate electronically, the documents referred to in the preceding paragraph may be replaced by an electronic data interchange (EDI) message that has the same function。
B8 Delivery certificate, transport document or equivalent electronic message
The Buyer must accept the transport document provided in accordance with A8 if it complies with the contract。
A9 Check, pack and mark
The Seller must pay the costs of checking (e.g. checking the quality of the goods, measuring, weighing, counting) necessary for delivery in accordance with A4.。
The Seller must, at its own cost, provide such packing as is required for the transport arranged by the Seller (unless the goods described in the Contract are shipped without packing in accordance with relevant industry practice)。Packages should be properly marked。
B9 Goods inspection
The buyer must pay the cost of any pre-shipment inspection, except for inspections mandated by the relevant authorities of the exporting country。
A10 Other obligations
At Buyer's request and at Buyer's risk and expense，The seller must render every assistance to the buyer，To assist the Buyer in obtaining any documents or equivalent electronic messages (other than those listed in A8) issued or transmitted by the country of shipment and/or the country of origin that may be required for the Buyer to import the goods and, if necessary, transit from another country。
At the request of the Buyer, the seller must provide the Buyer with the information required for insurance。
B10 Other obligations
The Buyer must pay all costs incurred in obtaining documents or equivalent electronic messages referred to in A10 and reimburse the Seller for the costs incurred in providing assistance。
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