What do the Incoterms CFR and CIF mean?

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Goods shipped under the condition Cost and Freight (CFR) must be loaded onto the method of transport by the seller.  The seller is then responsible for paying any fees associated with the port of loading as well as paying the shipping cost to deliver the goods to the buyer.  However, the cost of insurance (if necessary) and all fees associated with the port of call are borne by the buyer.

The term Cost Insurance and Freight (CIF) is substantially the same as CFR but the seller is also responsible for purchasing insurance for the goods until they reach the destination port.  Both CFR and CIF can only be used for land or sea based transport.

If you have any questions about transfer of property in Japan, please contact our office to set up a legal consultation.