When are Incoterms CRF and CIF terms used?

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The Incoterms Cost and Freight (CFR) and Cost, Insurance and Freight (CIF) mean that the seller is then responsible for loading the products and paying any fees associated with the port and shipping.  Therefore, CFR and CIF are commonly used terms in purchase and sale agreements where the buyer has slightly more negotiating power than the seller.

Because these terms require the seller to accept responsibility for arraigning and paying for the shipment of the goods, the buyer is getting a slightly better deal than if the goods were shipped under the condition FOB.  This is especially the case when goods are shipped CIF, as the seller must take responsibility for the goods up until the point that they reach the buyer’s port.

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