5) CFR : cost and freight...named port of destination

• Use: maritime transportation
• Type of sale: sale at departure

Only mode of maritime transportation

DOCUMENTS

RISKS

EXPENSES

Assumed by the seller

Main obligations of the parts

• The seller have:
  • To conduct the clearance export. if it is necessary.
  • To deliver the goods on board of the ship in the port of embarking.
  • To conclude the contract of transportation and to pay for freight until the agreed destination port.
  • To pay for the expenses of discharge as far as they are included in freight.
• The buyer have:
  • To receive the goods in the agreed destination port.
  • To support the risks from the moment where the goods passed the bulwark of the ship in the port of embarking.
  • To pay for the expenses of discharge as far as they are not included in freight.
  • To conduct the clearance import.

Other important points

• Documents demanded of the seller: commercial invoice or equivalent computer data: net carriage document (bill of lading or maritime transportation letter).
• Delicate point: the purchaser doesn't have a recourse anymore against the salesperson from the moment he accepted carriage document. However, if the delivered goods are not in conformity with the contract, he can exercise a right of recourse against the salesperson because of the failure to respect of the contract.