Documents Required for CFR Shipments: Complete Checklist

The CFR documents required for a shipment from Bangladesh answer one question first: who pays the freight, and who carries the risk while the ship is at sea? Under CFR (Cost and Freight), the seller pays ocean freight to the named port of destination, but risk passes to the buyer when the goods are loaded on board the vessel at the port of shipment.^{1 2} The seller pays for the voyage; the buyer carries its risk.

CFR stands for Cost and Freight. Write it in full: CFR plus the named port of destination plus Incoterms 2020, for example CFR Rotterdam, Incoterms 2020. CFR applies only to sea and inland waterway transport.¹ The CFR price covers the goods, export packaging, inland transport to the port, export clearance and ocean freight to the destination port.² It excludes insurance, import clearance, duty and onward transport.² Use it at the quotation stage, before filing, and after loading.

Why this checklist matters

The bill of lading does two jobs on a CFR shipment that no other document does. It evidences the loading date and the freight position in the contract of carriage. Under CFR the freight is prepaid by the seller, and the cfr bill of lading evidences both the loading date and the prepayment.² A received-for-shipment document does not prove loading, and a freight-collect bill contradicts a CFR price.

The insurance gap is the second reason. Under CFR there is no obligation on the seller to insure the buyer's risk.³ The buyer therefore needs marine cover from loading on board, not from sailing or arrival. If the buyer wants seller-paid insurance, discuss CIF instead.¹ CFR also suits some cargo better than others. Four rules, FAS, FOB, CFR and CIF, are only intended for port-to-port bulk or break-bulk shipments, and are not suitable for container shipments in their current form.¹ For container cargo loaded away from the port, discuss CPT or CIP.³

Before you start

Agree five points before drafting: the exact term, as CFR plus the named destination port with the Incoterms 2020 version stated; the freight contract scope and destination charges included; the document list, including letter of credit wording and product certificates the destination requires; one format rule: identical names, quantities, weights, marks and numbers; and who files the Bangladesh export set, since goods must not load until the declaration is approved.⁴ The seller pays freight and its export papers; the buyer pays insurance and import papers.²

Do the documents change by destination?

The core cfr export documents stay stable, but the origin form, product certificates, import documents and credit wording change by destination, product and payment terms. Confirm each item marked where required with the forwarder, broker or bank.

The full checklist

Work through the list in freight order.

Contract and freight papers

1. Sales contract or purchase order — seller and buyer. When: at order, before booking. State CFR, the named destination port and Incoterms 2020, plus goods, quantity, price and payment terms. Common error: a bare CFR with no port or edition.

2. Contract of carriage and booking confirmation — seller. When: booked before loading. The seller contracts and pays carriage to the destination port, with freight prepaid on the bill of lading.² Name the vessel, ports, freight position and charges included. Common error: a different port, or destination handling left unstated.

Bangladesh export clearance set

3. Bill of Export (shipping bill) with supporting set — seller. When: filed and approved before loading. Goods must not load until the declaration is submitted and approved, stating the goods, value, exporter, buyer and transport operator.⁴ Common error: one enclosed document missing.

4. EXP form certified by an authorized dealer bank — seller, through the bank. When: before shipment, with the Bill of Export. It supports the realization of export proceeds.⁴ Common error: an uncertified form, or a value that does not match the invoice.

5. VAT registration and taxpayer identification documents — seller. When: enclosed with the Bill of Export, with the contract, invoice, packing list and EXP form.⁴ Common error: a certificate for a different entity, or a lapsed registration.

Goods papers

6. Commercial invoice — seller. When: drafted before filing. The invoice states the goods sold and the amount to pay, and customs uses it to determine duties and true value.⁵ Show the CFR value with freight separate from the goods value, and reflect the packing list.⁵ Common error: an FOB value, or one lump sum.

7. Packing list — seller. When: with the invoice, before filing. It lists the parties, invoice number, shipment date, carrier and mode, and itemizes contents, packages, weights, marks and dimensions.⁵ It is not a substitute for a commercial invoice.⁵ Common error: a count or weight differing from the bill of lading.

8. Certificate of origin — seller, via the Export Promotion Bureau or a chamber, where required. When: before shipment. It is issued by the Export Promotion Bureau or a chamber of commerce and industry, and enables customs, banks and businesses to authenticate origin.^{4 6} Common error: the wrong form for the preference scheme.

9. Inspection and product certificates — seller, via the issuer, where required. When: before loading. They include phytosanitary certificates for agricultural goods and quality control certificates where obligatory, for example for frozen fish.⁴ Common error: a certificate naming a different lot or destination.

Transport document and buyer papers

10. On-board bill of lading or sea waybill — carrier, on the seller's instruction. When: after loading. The cfr bill of lading must evidence loading on board and freight prepaid.² Banking practice addresses the on-board notation, shipment date and port of loading.⁷ Common error: a received-for-shipment bill with no on-board notation.

11. Insurance certificate or cover note — buyer. When: cover from loading on board. No seller insurance document exists under CFR.³ State the insured value, currency, voyage and risks covered. Common error: cover starting at sailing or arrival.

12. Import license, import declaration and duty payment papers — buyer. When: before arrival. Import formalities, clearance and duty sit with the buyer.¹ Common error: a declaration naming a different port or goods description.

13. Payment documents — seller and buyer. When: as the contract or letter of credit requires. Banking practice covers invoices, transport and insurance documents, certificates of origin, packing lists and certificates.⁷ Common error: wording differing from the credit.

14. Final consistency check and copy file — seller and buyer. When: before filing and after the bill of lading issues. One named person on each side checks names, quantities, weights, marks, ports, vessel, shipment date, freight mark and insurance start date. Common error: one check only, before loading.

Common failures and how to fix them

The bill of lading shows freight collect. Ask the carrier to correct the freight position to the contract of carriage before presentation.

The buyer sails uninsured. The buyer assumed freight payment bought cover. Buy marine cover from loading on board.³

CFR is used for a factory-loaded container. The carrier holds the container from the factory gate, but risk passes only on board. Agree CPT or CIP, or a written allocation of risk and cover, before signing.³

The destination named is a place, not a port. CFR names a port of destination, and the freight obligation runs to that port.² Amend the contract and booking to name the port before loading.

The invoice hides the freight element. Reissue the invoice with the goods value and the freight element shown separately, and make the invoice reflect the packing list.⁵

The origin form does not match the preference scheme. Confirm the form with the broker before issue.⁶

Summary table: cfr documents required by owner and timing

How Exportain helps

Exportain is a B2B marketplace connecting buyers with suppliers on Exportain, so the CFR term, destination port and document list can be agreed at enquiry. State the term in full, and ask each reply to confirm the freight-prepaid bill of lading wording, the Bill of Export set, the origin form, and the timing of buyer-side insurance. Profile document and photo checks are not factory inspections or guarantees. Exportain is not a party to the contract and does not inspect goods, book freight or clear customs.

FAQs

When should this checklist be used?

At the quotation stage, before the Bill of Export is filed, and after loading, when the bill of lading arrives. One check misses the document that arrives last.

Who should complete it?

The seller owns the contract, freight and export set; the buyer owns insurance and import papers. A forwarder or broker can prepare and file papers, but the obligations stay with the parties.

What are the most common failures?

A bill of lading marked freight collect, a buyer uninsured during the voyage, CFR used for a factory-loaded container, a place named instead of a port, a hidden freight element, and a mismatched origin form.

Can a third party do it?

Yes. A forwarder can book carriage, a broker can file the export and import sets, and a bank can check a credit set. A third party cannot create a seller insurance obligation under CFR.

Next steps on Exportain

Before confirming a CFR order, read the Incoterms guide for shipments from Bangladesh, the CIF guide if you want seller insurance, and how to buy. State the full term, port and document list in your enquiry, and ask each supplier on Exportain to confirm the freight-prepaid wording and origin form.