Cost and Freight is the name of the system which governs who is responsible for shipped goods. During export and transportation, the supplier is shackled with the costs, but once the goods successfully reach the destination port, responsibility is transferred to the buyer.
Cost and Freight are vital to shipping as it helps to prevent fraud from both parties. The cost is associated directly with whoever is in immediate control and not an anticipated control. It should also be noted Cost and Freight do not include the costs of insurance or customs.
This is, of course, unless the transport is hauling wooden boxes into arctic waters because, naturally, the rules would change for a matter of frost and crate.