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Guidelines to using Incoterms:
Always specify which terms are applicable - i.e. FAS in Incoterms 2000 as apposed to Incoterms 1990
When completing documents, ensure that you are using the correct format of a term. The term C+F has never existed. Urge your trading partners to confirm their acceptance to the specified term in writing. Draw up a check list of your duties and rights under the selected term and check that every intended or completed transaction conforms to this list and that nothing is omitted. Request that your trading partner do the same and exchange this information with them. Change or add nothing but in any event as little as possible to the selected term. In case of any inevitable change or addition, inform your trading partner and request them to accept it in writing. Never instruct carriers or any third party to do or omit anything on the basis of the Incoterms which do not apply to them at all. Cost and Freight
CFR { + the named port of destination } Cost and Freight The delivery of the goods to the named port of destination (discharge) at the sellers expense. The buyer is responsible for the cargo insurance, import Customs clearance and other costs and risks. The term CFR is persistently misused/replaced with C&F or C+F. The term C+F has never existed. C&F did exist but was replaced with CFR in 1980. If C&F is used by mistake a court of law will use the pre 1980 meaning of the term which is very different from the current meaning of CFR as in Incoterms 1990 and Incoterms 2000. Under the rules of the Incoterms 2000 the term CFR is used for ocean freight only. However in practice, many importers and exporters still use the term C&F for air freight. |
