Sourcing & Product Marketing
Procurement & Logistics
C-Terms
C-terms: (main carriage paid)
CFR (Cost and Freight - named port of destination):
The seller pays the costs and freight necessary to bring the goods to the named port of destination.
The buyer bears the risk of damage or loss to the goods as well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel, from the moment the goods pass the ships rail in port of shipment. So in the price paid by the buyer to the seller are included:
CIF (Cost, Insurance and Freight - named port of destination):
The seller pays the cost and freight necessary to bring the goods to the named port of destination and has to procure marine insurance against the buyers risk of loss or damage to the goods during the carriage.
The buyer bears any additional costs due to events occurring after the time the goods have been delivered on board the vessel; from the moment the goods pass the ships rail in port of shipment. So in the price paid by the buyer to the seller are included:
CPT (Carriage Paid To - named place of destination):
The seller pays the freight for the carriage of the goods to the named place of destination.
The buyer bears the risk of damage or loss to the goods from the moment those goods have been delivered into the custody of the carrier. So in the price paid by the buyer to the seller are included:
CIP (Carriage and Insurance Paid to - named place of destination):
The seller pays the freight for the carriage of the goods to the named place of destination and has to procure marine insurance against the buyers risk of loss or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. So in the price paid by the buyer to the seller are included:
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