What is difference between CIF and CFR
CIF (Cost, Insurance, and Freight) and CFR (Cost and Freight) are both commonly used trade terms in international contracts, primarily in shipping and maritime industry. The main difference between CIF and CFR lies in the responsibilities and costs associated with the transportation and insurance of goods.
CFR (Cost and Freight) indicates that the seller is responsible for the costs and freight charges involved in delivering the goods to the named port of destination. However, the buyer is responsible for arranging and covering the costs of insurance from that port onwards.
CIF (Cost, Insurance, and Freight) indicates that the seller is responsible for the costs, freight charges, and insurance coverage necessary to deliver the goods to the named port of destination. In this case, the seller arranges and covers the insurance until the goods reach the specified port.
In summary, the key distinction between CIF and CFR is that CIF includes the cost of insurance, while CFR requires the buyer to arrange insurance coverage separately.
Reviewed by Admin team
on
December 02, 2023
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