Category C Incoterms: Seller Pays Main Carriage

  1. CFR: Cost And Freight (followed by the named port of destination). This code signifies that the seller bears responsibility for clearing goods exported, delivering those goods beyond the ship’s rail at the port of export, and paying all transportation costs involved in moving the goods to the named port destination. CFR applies only to waterway transport. The “named port of destination” is always domestic to the buyer. Under this code, the buyer assumes all responsibility for risk of loss or damage, and bears any additional transportation costs beyond the ship’s rail at the port of export.
  2. CIF: Cost, Insurance, and Freight (followed by the named port of destination). Under this code, the seller clears the goods for export and bears responsibility for the delivery of the goods beyond the rail at the port of export. The seller of transport to the port of destination, and is responsible for paying and procuring Marine insurance in the name of the buyer. Once the goods have passed beyond the ship’s rail and port of export, they become the buyer’s responsibility. The buyer assumes responsibility for risk of loss or damage at that point and until delivery at the final destination. The “named port destination” is always domestic to the buyer.
  3. CIP: Carriage and Insurance Paid (followed by the named port of destination). When this code is used, the seller has agreed to clear the goods for export, deliver them to the carrier, and assume responsibility for paying carriage of insurance all the way to the named port of destination. In the 2000 version of the Incoterms, the seller also bears responsibility for any cost of unloading, customs, duties, small package Courier costs, and other charges. CIP is applicable to any modality, including Intermodal. The “named port of destination” is always domestic to the buyer, but is not necessarily the final destination of the goods.
  4. CPT: carriage paid to (followed by the named port of destination). The seller bears responsibility for clearing the goods for export and delivering them to the carrier. The seller is also responsible for carriage charges up to the point of the named port destination. In the 2000 version of the Incoterms, the seller also bears responsibility for any cost of unloading, import customs, duties, and any small package courier costs. The buyer bears responsibility for all extra costs, such as insurance. CPT is applicable to any modality, including Intermodal. The “named port of destination” is always domestic the buyer, but is not necessarily the final destination of the goods.

 

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