In a CFR Dubai transaction, the seller's responsibilities include:
- Providing the goods at the agreed point of origin, as specified in the sales contract.
- Loading the goods onto the vessel at the port of shipment.
- Paying for the costs of transporting the goods to the port of destination, including freight charges, insurance, and any other necessary expenses.
- Preparing and providing all necessary shipping documents, such as the commercial invoice, packing list, and bill of lading.
Once the goods have arrived at the port of destination, the buyer's responsibilities begin:
- Paying for any import duties, taxes, and other charges levied by the destination country.
- Arranging for the customs clearance and unloading of the goods from the vessel.
- Taking delivery of the goods at the port of destination.
It's important to note that the CFR Dubai incoterm does not include any form of insurance coverage. Therefore, the buyer is responsible for arranging their own insurance if they wish to protect the goods against potential risks during transportation.
CFR Dubai is commonly used in international trade when the seller wants to retain control over the shipping process and minimize their risks and costs, while still ensuring that the goods reach the destination in a safe and timely manner.
