'In CIF/CFR contracts, the seller bears risk of variation in freight rates'

'As long as you expect to realise the CIF/CFR value of the goods and declare it correctly in your shipping bill/EDF, there is no violation under FEMA'

We export machinery and equipment under CIF/CFR delivery terms. Quite often, the freight is less than what we estimated when we entered into the contract. So, we end up making some more profit. Are we violating any Customs or FEMA laws? What are the relevant provisions?

In a CIF/CFR contract, the buyer agrees to pay the contracted price that includes the freight element, regardless of the actual freight costs that the seller bears. The risk of variation in actual freight falls on the seller. If the actual freight is higher, the seller gets less money for the goods and if