CNF,C& F or CFR. Which term is correct.
Wednesday, March 25, 2015     Category : Inco Terms

CNF  or CFR. Which term is correct

 

 

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.


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Comments

 
Philip Says :
Wednesday, March 27, 2013
This article is great.
Muneeb Kapadia Says :
Wednesday, February 18, 2015
i have a question regarding CNF shipment basis i have read and heard from various websites and from peoples that in CNF shipment Seller pays freight and appoint his own freight forwarder but there is a confusion regarding this bcz in company where i am working in a company we are importing one Genet generator where supplier is charging freight from us(exporter) in his proforma invoice now i want to ask from you that why we are paying freight despite of we are importing on CNF basis ]
Admin Says :
Wednesday, February 18, 2015
Muneeb Kapadia, Although freight is being paid by the seller, the buyer can nominate a shipment, if seller agrees to do so before placing purchase order
dipesh patel Says :
Wednesday, March 11, 2015
I want to know about rules about import in india.my seller dealing with CFR mundra port. What is the meaning of CFR.which type of condition includ in CFR.also know about which type of tex importer pay.
 

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