CFR - COST AND FREIGHT Responsibilities


A The Seller Must B The Buyer Must
A1

Provision of Goods in Conformity with the Contract

The seller must provide the goods and the commercial invoice, or its equivalent electronic message, in conformity with the contract of sale and any other evidence of conformity, which may be required by the contract.
B1

Payment of the Price

The buyer must pay the price as provided in the contract of sale.
A2

Licenses, Authorizations and Formalities

The seller must obtain at its own risk and expense any export applicable or other official authorisation and carry out, where applicable, all customs formalities necessary for the export of the goods.
B2

Licenses, Authorizations and Formalities

The buyer must obtain at its own risk and expense any import licence or other official authorisation and carry out, where applicable, al customs formalities for the import of the goods and for their transit through any country.
A3

Contract of Carriage and Insurance
(a) Contract of carriage

The seller must contract on usual terms at its own expense for the carriage of the goods to the named port of destination by the usual route in a seagoing vessel (or inland waterway vessel as the case may be) of the type normally used for the transport of goods of the contract description.

(b) Contract of insurance

No obligation.
B3

Contract of Carriage and Insurance
(a) Contract of carriage

No obligation.

(b) Contract of insurance

No obligation.
A4

Delivery

The seller must deliver the goods on board the vessel at the port of shipment on the date or within the agreed period.
B4

Taking Delivery

The buyer must accept delivery of the goods when they have been delivered in accordance with A4 and receive them from the carrier at the named port of destination.
A5

Transfer of Risks

The seller must, subject to the provisions of B5, bear all risks of loss of or damage to the goods until such time as they have passed the shipís rail at the port of shipment.
B5

Transfer of Risks

The buyer must bear all risks of loss of or damage to the goods from the time they have passed the shipís rail at the port of shipment.
The buyer must, should he fail to give notice in accordance with B7, bear all risks of loss of or damage to the goods from the agreed date or the expiration date of the period fixed for shipment provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods.
A6

Division of Costs

The seller must, subject to the provisions of B6, pay
All costs relating to the goods until such time as they have been delivered in accordance with A4; and
The freight and all other costs resulting from A3 a), including the costs of loading the goods on board and any charges for unloading at the agreed port of discharge which were for the sellerís account under the contract of carriage; and
Where applicable, the costs of customs formalities necessary for export as well as all duties, taxes and other charges payable upon export, and for their transit through any country if they were for the sellerís account under the contract of carriage.
B6

Division of Costs

The buyer must, subject to the provisions of A3 a), pay
All costs relating to the goods from the time they have been delivered in accordance with A4; and
All costs and charges relating to the goods whilst in transit until their arrival at the port of destination, unless such costs and charges were for the sellerís account under the contract of carriage; and
Unloading costs including lighterage and wharfage charges, unless such costs and charges were for the sellerís account under the contract of carriage; and
All additional costs incurred if he fails to give notice in accordance with B7, for the goods from the agreed date or the expiry date of the period fixed for shipment, provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods; and
Where applicable, all duties, taxes and other charges as well as the costs of carrying out customs formalities payable upon import of the goods and, where necessary, for their transit through any country unless included within the cost of the contract of carriage.
A7

Notice to the Buyer

The seller must give the buyer sufficient notice that the goods have been delivered in accordance with A4 as well as any other notice required in order to take measures which are normally necessary to enable it to take the goods.
B7

Notice to the Seller

The buyer must, whenever he is entitled to determine the time for shipping the goods and/or the port of destination, give the seller sufficient notice thereof
A8

Proof of Delivery, Transport Document or Equivalent Electronic Message

The seller must at its own expense provide the buyer without delay with the usual transport document for the agreed port of destination.
This document (for example a negotiable bill of lading, a non-negotiable sea waybill or an inland waterway document) must cover the contract goods, be dated within the period agreed for shipment, enable the buyer to claim the goods from the carrier at the port of destination and, unless otherwise agreed, enable the buyer to sell the goods in transmit by the transfer of the document to a subsequent buyer (the negotiable bill of lading) or by notification to the carrier.
When such a transport document is issued in several originals, a full set of originals must be presented to the buyer.
Where the seller and the buyer have agreed to communicate electronically, the document referred to in the preceding paragraphs may be replaced by an equivalent electronic data interchange (EDI) message.
B8

Proof of Delivery, Transport Document or Equivalent Electronic Message

The buyer must accept the transport document in accordance with A8 if it is in conformity with the contract.
A9

Checking - Packaging - Marking

The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) which are necessary for the purpose of delivering the goods in accordance with A4.
The seller must provide at its own expense packaging (unless it is usual for the particular trade to ship the goods of the contract description unpacked) which is required for the transport of the goods arranged by it. Packaging is to be marked appropriately.
B9

Inspection of Goods

The buyer must pay the costs of any pre-shipment inspection except when such inspection is mandated by the authorities of the country of export.
A10

Other Obligations

The seller must render the buyer at the buyerís request, risk and expense, every assistance in obtaining any documents or equivalent electronic messages (other than those mentioned in A8) issued or transmitted in the country of shipment an/or of origin which the buyer may require for the import of the goods and, where necessary, for their transit through any country.
The seller must provide the buyer, upon request, with the necessary information for procuring insurance.
B10

Other Obligations

The buyer must pay all costs and charges incurred in obtaining the documents or equivalent electronic messages mentioned in A10 and reimburse those incurred by the seller in rendering its assistance in accordance therewith.

© 2004 John Michael Pierobon

Notes