Under this term the exporter bears the cost of carriage (freight). Risk passes from the exporter to the buyer at the port of shipment. The seller gives the notice of shipment to the buyer to enable him to arrange insurance. Until shipment, the risks however remain with the shipper. The buyer is responsible for insurance from the time he assumes the risks, that is, from the point of shipment. The transfer of risks is the same as in FOB. The seller needs to protect his interests by insuring the risks in goods from his warehouse till the goods are loaded in the overseas vessel. C&F price is inclusive of Ex-Works price, packing charges, transportation charges up to shipment & freight.