Trade Terms -Group C

Cost and Freight (CFR)(...named port of destination)
Under this term, the seller must pay costs and freight necessary to bring the goods to the named destination port,but the risk of loss of or damage to the goods is transferred from the seller to the buyer when the goods pass over the ship's rail at the specified port of shipment.CFR requires the seller to clear the goods for export.That's the seller should provide and pay for the export license or other necessary governmental authorization to export the cargo.It's the seller that charters ships ,books shipping space and pays for the cargo loading. When the goods are loaded on board of the vessel,the seller should send shipping notice to the buyer.
Cargo insurance is to be effected by the buyer.The buyer receives the goods in the port of destination and funds all unloading expenses at destination port unless such costs have been include in the freight or collected by the shipowner at the time freight was paid.This term should only be used for sea and inland waterway transportation.
To specify clearly the responsibilities and cost of unloading,some derived terms can also be used.

*CFR Liner Terms
The ship is responsible for the discharge of goods.The unloading charges are included in the freigh that is paid by the seller.
*CFR Landed
The goods must be unloaded onto the dock.The seller is responsible for the discharge of the goods and pays the costs,including lighterage and wharfage charges.
*CFR Ex-Ship's Hold
The seller fulfulls his obligations when he has made the goods available to the buyer for unloading.The buyer pays the cost for dischaging the goods from the ship's hold.

Cost,Insurance and Freight (CIF)(...named port of destination)
This term is a popular cargo delivery arrangement and can be only used for sea or waterway transportation. Under CIF, in addition to CFR obligations, the seller is obliged to arrange marine insurance against the risk of loss of, or damage to, the goods in transit.That is, the seller contract with the insurer and pays the insurance premium.To stipulate clearly the responsibilities and cost of unloading, as CFR,CIF also have some derived terms:CIF Liner terms,CIF Landed and CIF Ex-ship's hold.

Carriage Paid to (CPT)(...named place of destination)
Under such a term, the seller should pay the freight for the carriage of the goods to the named destination.The buyer's risk commences when the goods have been delivered into the custody of the carrier or the first carrier if several carrier are involved.CPT requires the seller to clear the goods for export.CPT is almost as CFR except that CFR is only applied to sea and water transportation while CPT may be used for any mode of transport including multimodal transport.

Carriage and Insurance Paid to (CIP)(...named place of destination)
This term is almost identical to CPT except that under CIP,the seller has to fund the cargo insurance.The seller's liability ceased when the cargo has been accepted by the carriage or the first carrier under multimodal transport operation.Its only difference from CIF is that CIP is applied to all modes of transport.