Main carriage paid by the seller CFR - Cost and Freight (... named port of destination)
The term Cost and Freight means that the seller delivers when the goods cross the ship's rail at the port of shipment.
The seller must pay the costs and freight required to deliver the goods to the named port of destination, but the risk of loss or damage to the goods, as well as any additional costs arising after the shipment of the goods, are transferred from the seller to the buyer.
The terms of the CFR term require the seller to clear the goods for export.
This term can only be used for the transport of goods by sea or inland waterway.
The seller must:
• provide the buyer with the goods, commercial invoice or equivalent electronic message, as well as any other evidence of compliance that may be required by the terms of the contract of sale;
• at their own expense and at their own risk, obtain any export license or other official certificate, and also fulfill, if necessary, all customs formalities required for the export of the goods;
• conclude at his own expense, on his own terms, a contract for the transport of goods to the named port of destination along an ordinary navigable route at sea (or on a vessel suitable for inland waterway transport) of the type normally used to transport goods similar to the goods specified in the contract purchase and sale;
• Ship the goods on board the ship at the port of shipment on the set date or within the agreed time limit;
• subject to reservations:
a) bear all risks of loss or damage to the goods until the goods transfer through the ship's rail in the port of shipment;
b) bear all costs associated with the goods, until the moment of delivery;c) pay freight and all expenses, including the costs of loading the goods on board the vessel and any costs of unloading the goods at the agreed port of discharge, which, according to the contract of carriage, are vested in the seller;
d) pay, if required, all costs associated with the implementation of customs formalities for export, as well as other duties, taxes and other charges payable upon export of goods, as well as costs associated with its transit through third countries in cases where, under the contract of carriage, they are vested in the seller;
• notify the buyer in sufficient detail that the goods have been delivered, and also send the buyer any other notice required for him to carry out the usually necessary measures for obtaining the goods;
• Immediately provide the buyer at his own expense with the usual transport document issued for the agreed destination port.
This document (for example, a negotiable bill of lading, a non-negotiable sea waybill, proof of carriage by inland waterway transport) should extend its effect to the goods sold, be dated within the period agreed upon for the shipment of the goods, and give the buyer the opportunity to receive goods from the carrier in port of destination and, unless otherwise agreed, give the buyer the opportunity to sell the goods to a third party during transit transportation by way of a transfer inscription (negotiable bill of lading) or by notifying the carrier
If several originals of the transport document are issued, the buyer must be provided with a complete set of originals.
If the seller and the buyer have agreed on the use of electronic communications, the above documents may be replaced by equivalent electronic messages - EDI.
The seller is also required to:
• bear the costs associated with checking the goods (for example, checking the quality, size, weight, quantity) required for the delivery of the goods;
• at its own expense to provide packaging (except in cases where it is customary in a given branch of trade to ship a contracted goods without packaging), which is necessary for the goods to be transported by it. Packaging must be properly marked;
• at the buyer's request, provide the latter at his own expense and at his risk full assistance in obtaining any documents or equivalent electronic messages issued or used in the sending country and (or) in the country of origin of the goods that the buyer may need to import the goods or, if necessary, for its transit through third countries;
• provide the buyer, upon his request, with all the information necessary to carry out insurance.
The buyer is obliged:
• pay the price of the goods provided by the contract of sale;
• at their own expense and at their own risk, obtain any import license or other official certificate, and execute, if necessary, all customs formalities required for the i