TRANSPORT ONLY
Cost and Freight (CFR)
Seller delivers goods on board the vessel, procures goods already so delivered.
The risk of loss of or damage to goods passes when goods are on board the
vessel.
This rule has two critical points, because risk passes,costs are transferred at
different places.
This rule is unsuitable for containerized transport (the CPT rule should be
use).
Seller bears all risks of loss or damage to goods until delivered, with exception
of loss or damage in circumstances,
must pay costs relating to goods, freight, other costs (costs of loading the
goods on board, any charges for unloading at port of discharge),
pay cost of customs formalities necessary for export (all duties, taxes, other
charges payable upon export), transport through any country, those checking
operations
The seller must give buyer any notice needed .
The seller bears all risks involved in bringing the goods to name place.
The parties are well advised to specify as clearly as possible point within agreed
place of destination, as risks to that point are for account of the seller.
The seller is advised to procure contracts of carriage that match this choice
precisely.
DAP requires seller to clear the goods for export, where applicable.
However, seller has no obligation to clear the goods for import, pay any import
duty or carry out any import customs formalities.
If parties wish seller to clear the goods for import, pay any import duty ,carry
out any import customs formalities , the DDP term should be used.