CFR vs CPT – who pays for what?
CFR is Cost and Freight and CPT is Carriage Paid To. We compare who pays for transport, customs clearance and duty, and where risk passes to the buyer.
Key differences
CFR and CPT look identical in the cost table. The two rules differ in the point at which risk passes to the buyer and in the mode of transport. CFR applies only to sea and inland waterway transport.
- Risk passes
- CFROn board the vessel at the port of loadingCPTOn handover to the carrier in the country of dispatch
- Mode of transport
- CFRSea onlyCPTAny
Full cost breakdown
| Cost | CFR | CPT |
|---|---|---|
| Export clearance | Seller | Seller |
| Transport to the port or terminal | Seller | Seller |
| Loading for main carriage | Seller | Seller |
| Main carriage (freight) | Seller | Seller |
| Insurance | No obligation | No obligation |
| Unloading at destination | Buyer | Buyer |
| Import clearance | Buyer | Buyer |
| Import duty and VAT | Buyer | Buyer |
| Risk passes | At the port of loading, when the goods are on board the vessel – even though the seller pays the freight to the port of destination. | When the seller hands the goods over to the first carrier – even though the seller pays for transport to the place of destination. |
| Mode of transport | Sea and inland waterway transport only | Any mode of transport (sea, rail, air, road) |
Notes
- CFR and CIF – the main freight ends at the port of destination. Transport from the port to the warehouse is paid by the buyer, while under the D rules (DAP, DPU, DDP) this leg is the seller’s responsibility if the place of delivery is a warehouse.
- Unloading at destination: if unloading costs are included in the contract of carriage concluded by the seller, the seller pays them and cannot charge them to the buyer afterwards.
What to watch for when importing from China
CFR Cost and Freight
The supplier pays the freight, but the risk passes to you as early as the port of loading in China. You usually pay the charges at the port of destination (e.g. for container handling at the terminal and the release of documents), and they are set by the forwarder chosen by the supplier – you do not know them in advance. Before you place the order, ask for a list of these charges.
CPT Carriage Paid To
The supplier pays for transport to the place of destination, but the risk passes to you when the goods are handed over to the first carrier in China. If the goods are lost or damaged in transit, it is you who has to pursue the claim – so it is worth insuring them.
When to use CFR and when to use CPT?
- CFR – for sea freight, when the supplier has a good freight rate to Europe, while you insure the goods yourself and handle customs clearance in Poland.
- CPT – for any mode of transport (including rail and air), when the supplier arranges carriage to Poland, while you insure the goods and handle customs clearance.
Has your supplier quoted a price including transport?
Compare it with our offer for transport from China – by rail, sea or air – with customs clearance in Poland and cargo insurance. Send us your cargo details and we will prepare a quote tailored to your shipment.
Request a quoteFAQ
What is the main difference between CFR and CPT?
CFR and CPT look identical in the cost table. The two rules differ in the point at which risk passes to the buyer and in the mode of transport. CFR applies only to sea and inland waterway transport.
Where does risk pass to the buyer under CFR?
At the port of loading, when the goods are on board the vessel – even though the seller pays the freight to the port of destination.
Where does risk pass to the buyer under CPT?
When the seller hands the goods over to the first carrier – even though the seller pays for transport to the place of destination.
Can CFR and CPT be used for rail freight from China?
Only CPT. CPT works with any mode of transport, while CFR applies only to sea and inland waterway transport. That is why CFR is not used for rail freight from China.
Compare other pairs
Incoterms® is a registered trademark of the International Chamber of Commerce (ICC). This page is an independent, simplified summary of how costs and risks are divided – it is not affiliated with or approved by the ICC. When drafting contracts, use the official text of the Incoterms® 2020 rules published by the ICC.