Cost and Freight, also known as CFR, is an international trade term used to describe the cost of goods and transportation from the seller's location to the buyer's destination port. This term is commonly used in the Incoterms 2000, which is a set of standardized trade terms used in international contracts. CFR is an important concept to understand in the field of finance, as it determines the responsibility and cost allocation between the buyer and seller in an international trade transaction. It is crucial for businesses to be familiar with these terms to ensure efficient and cost-effective trading.
