08/11/2019
In a Nutshell
- Cost and Freight, or COF, and Free on Board, or FOB, are legal terms in international trade. These Incoterms govern shipping responsibilities for international trade.
- Free on Board means the seller is responsible for the product only until it is loaded on board a shipping vessel at main shipping origin point, after which point the buyer is responsible.
- With CFR, the seller must arrange and pay all costs to ship the product to a destination port, at which point the buyer becomes responsible.