Incoterms Cost And Freight

 Since an entirely different set of Terms is used in

INTERNATIONAL TRADE , the buyer and the seller must have the common understanding of the terms of SALE.  Based upon the quoted terms of sale,sellers responsibility will be clarified in erms called INCOTERMS.  These incoterms are used universally to determine who pays for what and when the responsibilty for goods tranfers from the seller to the buyer.

 In a C & F Price i.e Cost & freight method of

quotation , Seller must pay the costs and freight to bring the goods to the port of destination.  However, risk is transferred to the buyer once the

goods have crossed the ship's rail. (Applicable to Maritime transport only.)

 Seller quotes a price for the cost of goods, which

includes the cost of inland and overseas transportation from the point of origin to port of landing.  Additional charges outside of the agreed freight

charges fall to the account of buyer.  Insurance is the responsibility of the buyer.