"Cost and Freight" means that the seller must pay the costs and freight necessary to bring the goods to the named port of 

destination but the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the 

time the goods have been delivered on board the vessel is transferred from the seller to the buyer when the goods pass the 

ship's rail in the port of shipment. 

The CFR term requires the seller to clear the goods for export. 

This term can only be used for sea and inland waterway transport. When the ship's rail serves no practical purpose, such as 

in the case of roll-on/roll-off or container traffic, the CPT term is more appropriate to use. 

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