CLARITY ON INCOTERM-CFR

[Asked by Guest]

Dear Sir,

We have placed order on one of supplier outside india. The term agreed is CFR- XYZ port. As the Purchase order calls for Liquidated damages on late delivery, it is important to establish the date of material receipt at the discharge port. Can u please inform me which documents should be considered for confirming, when the material was delivered at discharged port.

[YAGAY and SUN]

Dear Ninad,

Either through Certificate of Landing or through tracking report you can prove your stand. You may contact your shipping line in this regard. Normally, they charge ₹ 1500/- to 3000/- per certificate. However, tracking report can be downloaded free of cost from the shipping line's website.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[Mahir S]

Sir,

All Ports have a list of arrival/departure of ships as well as details of loading and unloading of goods at the port.

You can get the details of delivery of material at the discharged port from the concerned port authorities. You need to contact a Customs agent at the discharge port.

[Kishan Barai]

You can always track the cargo container from the official website of shipping line.

Under CFR as per Latest INCOTERMS 2010, responsibility of exporter ends when the goods are safely loaded on vessel at loading port (Indian port in your case) but exporter need to pay transportation cost uptil destination port.

I hope this will help you.

Cordially yours,

Kishan Barai

AI Summary

CFR Incoterm: seller pays carriage to destination but risk transfers at loading; use carrier or port documents to prove discharge.
Under CFR, seller bears cost of carriage to the named destination port while risk passes on loading at shipment; therefore proof of delivery at the discharge port is evidentiary for contractual claims. Preferred documentary proof includes the shipping line's Certificate of Landing, container tracking reports from the carrier's website, and port arrival/unloading records; confirmations can also be obtained from the discharge port's customs or a local shipping agent.