Incoterms & Delivery Terms
CFR
Also known as: Cost and Freight, C&F
Cost and Freight obliges the seller to pay for the goods and the ocean freight to bring them to the named destination port, but not to arrange insurance. As with CIF, the critical point is that risk passes to the buyer at the origin port when the goods are loaded aboard the vessel, even though the seller continues to pay carriage to destination. A buyer purchasing on CFR terms is therefore strongly advised to arrange their own cargo insurance covering the ocean voyage, because any loss in transit falls on them despite the seller controlling the carriage contract.
CFR is CIF without the insurance, and the risk still passes at the origin port. A buyer on CFR terms who has not arranged cargo insurance is carrying an uninsured ocean voyage while the seller controls the carriage contract. That is the worst of both positions.
Where it matters for compliance
- Freight to the U.S. port is in the price and is deductible from customs value if separately identified.
Related terms
Reviewed by a licensed customs broker. Definitions are general information, not legal or customs advice for a particular shipment. Duty rates, tariff programs and agency requirements change frequently.