AQVIA BATH TRADE TERMS

CFR Cost and Freight

CFR, or Cost and Freight, means Party A arranges and pays the freight cost to deliver goods to the named destination port. However, the risk usually transfers from Party A to Party B once the goods are loaded on board the vessel at the port of shipment.

Party Definition

For this CFR trade term page, the parties are defined as follows:

Party A (Manufacturer / Seller) Aqvia Bath is Party A when supplying bathroom products. Party A prepares the goods, handles export clearance, loads the goods on board and pays freight to the named destination port.
Party B (Buyer / Purchaser) Party B is the buyer, importer, distributor, dealer or project purchaser. Party B takes risk after goods are loaded on board and handles import clearance, duties, taxes and destination delivery.

Responsibility Summary

Under CFR, Party A pays for the sea freight to the named destination port, but risk transfers to Party B after the goods are loaded on board the vessel at the port of shipment.

Item Party A (Manufacturer / Seller) Party B (Buyer / Purchaser)
Goods Preparation Prepare goods according to confirmed order details. Confirm product model, quantity, finish, packing and requirements.
Export Clearance Handle export clearance under standard CFR. Provide required buyer or destination information when needed.
Loading on Vessel Arrange loading of goods on board the vessel at the port of shipment. Risk usually transfers after goods are loaded on board.
Main Freight Arrange and pay freight cost to the named destination port. Receive shipment at destination port and arrange next steps.
Insurance Not required to provide insurance under standard CFR. Arrange cargo insurance if needed.
Import Clearance Not responsible for import clearance at destination. Responsible for import clearance, duties, taxes and local charges.
Final Delivery Not responsible for delivery after destination port unless agreed. Arrange destination port handling, inland transport and final delivery.

Party A Responsibilities

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Prepare products according to confirmed quotation or written agreement.
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Provide standard packing or agreed packing before shipment.
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Handle export clearance and export documentation under standard CFR.
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Arrange loading of goods on board the vessel at the port of shipment.
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Pay sea freight cost to the named destination port.
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Provide basic shipping documents required for the confirmed shipment.
Party A pays the freight cost to the named destination port, but Party A does not cover cargo insurance under standard CFR unless both parties agree otherwise in writing.

Party B Responsibilities

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Bear cargo risk after the goods are loaded on board the vessel at the port of shipment.
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Arrange cargo insurance if insurance protection is required.
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Handle destination port unloading, port charges and local handling fees.
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Handle import customs clearance, import duties, taxes and local compliance requirements.
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Arrange inland transportation from destination port to final delivery address.

When CFR Is Suitable

CFR is usually suitable for sea freight orders when Party B wants Party A to arrange freight to the destination port, but Party B can handle insurance, import clearance and destination-side delivery.

If Party B wants insurance included, CIF may be more suitable. If Party B wants delivery to a final address instead of a destination port, DAP or DDP may be discussed depending on the destination and order type.

Need CFR Quotation for Bathroom Products?

Send your product models, quantity and destination port. Aqvia Bath can help review whether CFR is suitable for your bathroom product shipment.

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