CFR-Cost and Freight
“Cost and Freight” is nothing moe that the case when the person who sales is obliged pay the costs and necessary taxes to bring the goods to the chosen port or point of destination but he still risks of loss of or even damage to the cargo, must even be aware of any additional costs (if such appear) according to unsuspected events occurring after the time the products have been delivered on board the vessel changes from the seller to the client when the goods pass the ship’s board in the port of shipment chosen in the contact.
Incoterm CFR obliges the seller to make sure that the products are clear and rady for export abroad.
Such a incoterm is a very specific because can tak place only for sea and inland waterway transport. Additionaly the ship’s rail serves no practical purpose, e.g. the case of roll-on/roll-off or container transport, the CPT term is more likely to be used and it makes him more safe specially for banks.