This article aims to provide a basic understanding of CF incoterms. It also discusses some of their variants – CIFFO and CFFO. These terms are usually used with Incoterms. Incoterms, or International Commercial Terms, are a set of standardized rules published by the International Chamber of Commerce (ICC) to facilitate international trade. These rules outline the responsibilities, costs, and risks of the parties in international trade. When parties refer to Incoterms, they incorporate the latest edition of the rules. The most recent version, Incoterms 2020, has been in effect since January 1, 2020. General meaning of CIF and CFR (CF) CIF stands for “Cost, Insurance, and Freight”. It means that the seller is responsible for arranging and paying for the cost of goods, transportation, and insurance coverage up to the destination port. The seller bears most costs until the goods arrive at the destination port. CFR (CF) stands for “Cost and Freight”. It is often used interchangeably with CF. Under CFR, the seller arranges and pays for the transportation of the goods to the destination port, similar to CIF. However, insurance coverage is not included in this term. The buyer is not obliged to insure the goods. However, they can arrange and pay for the insurance if they choose to do so. There are also other similar terms, such as CIFFO and CFFO. They are extensions of CIF and CFR, respectively, with an added “Free Out” component. Essentially, CIFFO is CIF with the added responsibility of unloading the goods at the destination port. Similarly, CFFO is CF with the same added responsibility of unloading. The “Free Out” component allocates discharging costs to the seller or buyer based on contract terms. “Free out” is not provided for in Incoterms. It is recommended to clarify its meaning in the contract to avoid doubts.