CLARITY ON INCOTERM-CFR

[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 andSUN]

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

Determining Receipt Date for CFR Incoterm Deliveries at Indian Ports: Certificate of Landing vs. Shipping Line Report A query was raised regarding the determination of the receipt date for goods delivered under the CFR Incoterm at an Indian port, which is crucial for enforcing liquidated damages for late delivery. Respondents suggested obtaining a Certificate of Landing or using a tracking report from the shipping line, which may incur a fee. Additionally, port authorities can provide arrival and unloading details, and a Customs agent can assist with this information. Under CFR terms, the exporter's responsibility ends once goods are loaded onto the vessel, though they must cover transportation costs to the destination port.