What are the shortcomings of CFR in international trade and how can it be improved?

CFR: Cost and Freight (Specified Port of Destination).

It means that the seller must deliver the goods to the ship destined for the designated port of destination at the port of shipment within the shipping period specified in the contract, bear all costs until the goods cross the side of the ship and the risk of loss or damage to the goods, and be responsible for chartering or booking the ship and paying the normal freight to the port of destination.

Seller's risk: The seller must bear all risks and costs before the goods cross the side of the designated vessel at the port of destination. If the goods cannot be delivered on time and in good quality due to a series of problems such as damage or loss before crossing the ship's side, the seller shall bear all the losses of the buyer according to the contract, of course, the breach of contract caused by force majeure is another matter.

Buyer's Risk: The buyer must bear all costs and risks after the goods have crossed the ship's side. If the cargo is accidentally dropped on the deck due to unloading after crossing the ship's side, the buyer will be responsible for the loss even if the cargo is damaged.

In terms of risk, the seller is greater than the buyer.

Regarding the unloading fee, the parties should make it clear in the contract to avoid unnecessary disputes.

Improved: Changed to CIFReason: If the goods have a problem before they cross the ship's side, the seller can ask the insurance company to compensate the buyer for the loss.

I just graduated, majoring in business English, and my graduation job is quite relevant, and I have been doing foreign trade for more than a year. Hope it helps you a little.

Nothing has been found, as the latest 2010 general rules have just been released.

CFR stands for Cost and Fright in English, which means in ChineseCost & Freight。Under the CFR, the seller is required to deliver the goods to the port of shipment specified in the contract and to a vessel arranged by the seller within the date or period agreed in the contract, or to obtain a certificate that the goods have been loaded on board. In addition, the seller is required to submit a commercial invoice and other documents required by the contract.

In CFR terms, the risk of loss of or loss of the goods passes from the seller to the buyer when the seller fulfills its delivery obligations at the port of shipment. The seller bears all costs incurred prior to delivery, including customs duties and other charges payable when export formalities are required. The seller also pays the freight and related charges from the port of shipment to the port of destination.

Considerations for using CFR terminology

CFR** terminology is used.

At the time of closing, the seller is obligated to transport the goods from the port of shipment to the port of destination. In order to ensure that the obligation to deliver goods at the port of shipment can be completed on time, the seller shall reasonably stipulate the shipment period according to the actual situation of the source of goods and the source of the vessel. Once the shipment date is determined, the seller shall charter the vessel in time to book space and prepare the goods, and ship the goods within the specified time limit.

In accordance with the United Nations Convention on Contracts for the International Sale of Goods.

The seller is a breach of contract and is liable for breach of contract if the seller delays or preships the shipment. The buyer has the right to refuse the goods or make a claim depending on the circumstances.

CFR refers to the crossing of goods at the port of shipmentShip's sideDelivery is completed by the seller and the seller must pay the freight and charges required to transport the goods to the specified port of destination.

When the transaction is closed according to CFR conditions, the seller arranges the transportation and the buyer handles the freight insurance. If the seller does not send a shipment notice in time, the buyer will not be able to apply for freight insurance in time, and may even miss the cargo insurance. This term applies to sea or inland waterway transport.

Under CFR terminology, be sure to pay attention to the issue of shipping notice. Because under CFR terms, the seller is responsible for arranging the transportation and the buyer is taking out the insurance himself, it is a crucial issue in the CFR contract for the buyer to obtain insurance from the insurance company before the goods are loaded onto the ship, i.e. before the risk is transferred to the buyer. Therefore, the IncoTerms emphasize that the seller must notify the buyer without delay that the goods have been loaded onto the vessel.

Otherwise, the seller is liable for breach of contract.

The main obligations of the seller in the CFR:

1. Responsible for delivering the goods in accordance with the contract to the ship destined for the designated port of destination at the port of shipment within the date or period specified in the contract, and giving full notice to the buyer.

2. Responsible for handling the export procedures of goods and obtaining export licenses or other approvals.

3. Responsible for chartering or booking, and paying the freight to the port of destination.

4. Bear all the costs and risks of the goods before they cross the ship's side at the port of shipment.

5. Responsible for providing commercial invoices and usual transportation documents for the goods to be shipped to the agreed port of destination. If the buyer and seller agree to use electronic communications, all documents may be replaced by electronic data interchange information with equal effect.

The differences between FOB, CIF, CFR are:

1. The included expenses are different: FOB** includes cost + freight, CIF** includes cost travel + freight + insurance, CFR** includes cost + freight;

2. The applicable transportation methods are different: FOB and CIF can only be by sea, CFR can be any mode of transportation;

3. The risk transfer object of the group splitting is different: the buyer bears all the risks after FOB and CIF cross the ship's side, and the CFR risk or transfer is the delivery to the carrier.

The CFR term means cost plus freight.

CFR, the full name is Cost and Freight, which means cost plus freight in Chinese, and specifies the port of destination. Refers to deliveries on board a vessel at the port of shipment, where the seller is required to pay the costs of transporting the goods to the port of the named destination. But the risk of the goods is transferred at the time of delivery on board the ship at the port of shipment.

The CFR rate is calculated equal to the FOB rate plus freight and is only applicable to sea or inland waterway transportation.

CFR International Terminology.

It is at the port of loading where the goods cross the side of the ship.

Delivery is completed by the seller and the seller must pay the freight and charges required to transport the goods to the specified port of destination. However, the risk of loss of or damage to the goods after delivery, as well as any other additional costs due to various events, is transferred from the seller to the buyer.

CFR is an abbreviation for Cost and Freight, which means Cost and Freight.

The use case is suitable for sea or inland waterway transportation.

CFR means that the goods are delivered on board the ship at the port of shipment, and the seller is required to pay for the delivery of the goods to the port of destination named by the seller.

When the CFR condition is closed, the buyer takes care of the freight insurance and the seller arranges the transportation. If the seller does not issue the shipment notice in time, the buyer will not be able to apply for the freight insurance in time, and may even lead to the omission of the cargo insurance.

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Notes:

1. Before the goods are loaded on the ship, that is, before the risk is transferred to the buyer, the buyer should complete the insurance with the insurance company in a timely manner, which is a crucial issue in the CFR contract. Therefore, the seller must notify the buyer exactly that the goods have been loaded onto the vessel. Otherwise, the seller is liable for breach of contract.

2. CFR Liner Term means that the cost of unloading and flushing the code shall be handled according to the conditions of the liner and shall be borne by the seller.

3、cfr ex ship'S hold means that the seller bears the cost of lifting the goods from the bilge to the moment when the hook is unloaded from the side of the ship.

4. CFR ex tackle means that the seller bears the cost of lifting and unloading the goods from the bilge to the wharf.

5. CFR LANDED means that the seller bears the cost of unloading the goods to the port of destination.

CFR** term refers to Cost and Freight (......Designated port of destination).

In the case of a CFR term, insurance premiums are not included in the composition. This means that the buyer has to take out the insurance at his own expense and pay for the insurance. The rest of the information regarding the place of delivery, the responsibilities of the buyer and the seller, and the costs are the same as the CIF terminology.

In the CFR contract, the buyer is required to insure itself, so as in the case of the FOB contract, the seller must give the buyer sufficient notice of the loading of the goods on the ship, otherwise the seller shall be responsible for the losses caused by the buyer's omission of freight insurance.

Dear, hello, I'm glad to answer for youAnswer: The four types of CFR deformation of CFR ** terms mainly include: The basic forms of common welding deformation are shrinkage deformation, angular deformation, bending deformation, twisting deformation, and wave deformation.

1) CFR Liner Terms (CFR Liner Conditions) This means that the unloading fee is handled according to the liner method, that is, the seller is responsible for unloading, and the buyer does not bear the unloading fee. (2) CFR Landed means that the seller bears the cost of unloading, including the barge charge. (3) CFR ex Tackle (CFR Delivered Under Hook) This refers to the cost at which the seller is responsible for lifting and unloading the goods from the hold to the ship's hook (on the dock or on the barge).

In the event that the vessel is unable to dock, the cost of chartering the barge and unloading the cargo from the barge to shore shall be borne by the buyer. (4)cfr ex ship'S hold (CFR bilge delivery).