What is Cost and Freight in SAP SLL - Global Trade Services?

SAP Term: Cost and Freight

• Component: SLL

• Component Name: Global Trade Services

• Description: An international commercial term under which the seller exporter pays the cost of the merchandise and all shipping costs to the named port of destination. When the goods have been delivered on board the vessel, the risk of lossor damage to the goods and costs that occur after are transferred from the seller to the buyer. Cost and Freight CFR requires the seller to clear the goods for export. The CFR term can only be used for sea and inland waterway transport.

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• Key Concepts: 
  Cost and Freight (C&F) is a term used in international trade that indicates that the seller is responsible for the cost of transporting goods to a port of destination, as well as the insurance costs. It is one of the most commonly used terms in international trade and is part of the Incoterms 2020 set of rules published by the International Chamber of Commerce (ICC). C&F is often used in conjunction with other Incoterms such as FOB (Free on Board) or CIF (Cost, Insurance, and Freight). 
  
  How to use it: 
  In SAP Global Trade Services (GTS), C&F can be used to define the terms of a trade agreement between two parties. When C&F is used, the seller is responsible for all costs associated with transporting goods from their origin to the port of destination. The buyer is then responsible for any additional costs associated with getting the goods from the port to their final destination. 
  
  Tips & Tricks: 
  When using C&F, it is important to ensure that all parties involved are aware of their responsibilities and obligations. The seller should provide detailed information about the cost of transportation and insurance, as well as any other costs associated with getting the goods to their destination. The buyer should also be aware of any additional costs they may incur once the goods arrive at their destination. 
  
  Related Information: 
  For more information on Cost and Freight, please refer to the Incoterms 2020 publication from the International Chamber of Commerce (ICC). Additionally, SAP GTS provides detailed documentation on how to use C&F in international trade agreements.