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CFR Incoterm
Cost and Freight
Group C · main carriage paidSea & inland waterway only
CFR: the seller pays freight to the destination port, but risk passes once the goods are on board. Sea only.
Seller covers
- Export clearance
- Sea freight to the destination port
Buyer covers
- Risk and insurance in transit
- Import clearance and duties
Where risk passes
Risk passes on board even though the seller pays the freight.
When to use it
When the seller books the sea freight but the buyer carries transit risk.
Common mistake
Assuming CFR includes insurance - it doesn't; arrange cover separately.