CNF,C&F or CFR. Which term is correct.
What is the difference between CFR, C&F or CNF. All terms are one and no difference while operating. C&F and CFR are widely used terms of delivery in a domestic or international trade. Some use as CNF. Some of the traders use CNF instead of CFR. C&F is used instead of CFR regularly and widely used among business men. A doubt on C&F or CFR may commonly arises. Although the meaning of C&F,CFR and CNF are same, some of you may need to know which one of the terms is best suitable to use. Let us find CFR,C&F or CNF – which one is best suitable to mention in documents. Let us find out.
The terms of deliveries are followed by all business class for the purpose of domestic and international on the basis of international commercial terms issued by international chamber of commerce.
Let me provide you a brief history of international commercial terms.
The international chamber of commerce had an idea of forming international commercial terms (Inco terms) in the year 1921 at first time globally for smooth and uniform handling of international trade. However, the first set of international commercial terms rules was published in 1936 followed by second publication in 1953. Additional expansions and amendments have been in 1967, 1976, 1980, 1990, 2000 and 2010. Currently 8th version of Inco terms is commonly used which is Inco terms 2010 with effect from 1st January,2011.
Ok, let us again come back to CFR,C&F,CNF – which term is best to use. The C&F and CNF terms are modified with CFR terms in Inco terms 2000. There is no further modification on CFR in Inco terms 2010 which has been being followed by all domestic and international traders. Although C&F had been removed in Inco terms 2000, the term c&f has been being used widely even after 13 years of revision of Inco terms. As I have informed above, the term c&f or CFR is allowed to use wherever required, subjected to the mutual sale contract between buyer and seller on mentioning which Inco terms are applied in the contract.
I personally suggest to use CFR instead of C&F or CNF terms of delivery, as CFR is the latest version of publication of international commercial terms 2010.
Also read - Mode of transport under EX WORKS/FCA/CPT/CIP/DAT/DAP/DDP/FAS/FOB/CFR/CIF . I have written details articles about Inco Terms in this website. You may go through them to have a detailed knowledge about terms of delivery under International Business.
Detailed articles about Inco Terms of Delivery under export and import of International business have been mentioned in separate category – INCO TERMS – in this web site. You can click here to read.