“CNF GUIDE
What is CNF?
If you put the three letters CNF together, in terms of shipping, the acronym stands for “”Cost Net Freight””. This is a shipping agreement where the seller pays to ship the item to the port closest to the buyer, excluding insurance. Therefore, the buyer must pay the insurance premium from the origin to the final destination. If you see CIF, it is similar to CNF but requires the seller to purchase insurance to ship the item to the port of destination. CNF is also known as C&F and CFR. All terms have the same meaning.
Responsibilities of Buyers and Sellers in CNF Incoterm
1. In CNF (Cost Plus Freight) shipping, what is the main responsibility of the seller?
Below is a list of Seller’s mutual responsibilities under the CNG Agreement.
Goods invoices and documents
An invoice is a commercial document that includes all charges and details for the account of the goods being shipped.
It can contain information about payment terms and methods. It is the seller’s responsibility to prepare the goods invoice and all other necessary documents in accordance with the terms of the CNF
Packaging and Marking
Goods are packed and marked prior to shipment to ensure their safety and protection. In CNF (Cost and Shipping), the seller is responsible for packaging and labeling the product before shipping.
Go through customs formalities
In CNF, the seller is also responsible for handling all customs formalities before shipping the goods. International shipments require clearance of all customs formalities.
Delivery and Pre-shipment
Pre-shipment is the inland transport of goods before the container is loaded or moved to a port or terminal. In CNF, the seller is responsible for delivery and pre-shipment activation, and the seller is also responsible for all delivery and pre-shipment fees or charges.
loading fee
Loading charges refer to the cost of loading a container onto an ocean-going vessel to deliver the goods. In CNF, the seller is responsible for paying the loading fee.
Delivery in port
port delivery
The seller’s ultimate activity is to deliver the goods to the port closest to the buyer. The seller’s responsibility ends here, the buyer is responsible for the activities that follow, such as transporting the goods from the port to the buyer’s location.
2. In CNF (Cost and Shipping) transportation, what is the buyer’s main responsibility?
The following are the buyer’s responsibilities in the CNF Conditions of Carriage.
Payment for goods
The buyer needs to pay for the goods received. All payments are due and payments are due in accordance with pre-determined terms and conditions.
cash on delivery
unloading and front car
According to CNF, once the seller has shipped the goods to the nearest port, the buyer needs to start unloading and forwarding the shipment from that point.
How to calculate CNF price in export?
Unfortunately, there is no stable formula for calculating export prices.
Prices may vary by different sellers, shipping agents, freight forwarders and their quotes.
As a buyer, you must keep in mind that the initial CNF price will be lower than the final price due to additional customs and delivery charges in your country.
Frequently Asked Questions about CNF
What is the difference between CNF and CIF?
If the seller/supplier of the goods organizes insurance during transportation, the term is CIF (Cost Insurance and Freight). The supplier assumes the risk and is responsible for arranging and paying for the insurance. For CNFs, the purchaser of the product is responsible for organizing and paying for insurance during shipping.
CNF vs FOB?
Free On Board (FOB) means that the seller delivers the goods on the ship designated by the buyer. The risk of damage and loss of the goods passes to the buyer once the product is loaded onto the ship. Therefore, the buyer is responsible for the insurance of the goods.
Is CNF relevant to all forms of transport?
CNF and three other Incoterms (FOB, CIF and FAS) relate to goods transported by sea or inland waterways. Another seven Incoterms rules cover any mode of transport.
Who chooses the freight forwarder of CNF Shipping?
Since sellers are responsible for 90% of the shipping process, they naturally choose to use a forwarder.
As a buyer, you can also hire a freight forwarder to help you receive and clear your goods at the port of destination.
The agent can also organize the transportation of goods from the origin port to the destination country gate or warehouse.
A good freight forwarder will also help you with the customs clearance process.
When choosing these agents, choose an agent with a good reputation and experience in the industry. tj-chinafreight is a good choice, they have a professional team, please contact us.”
