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

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

Only mode of maritime transportation

Transportation by sea
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.
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