FOB Contract of Exports


FOB Contract of Exports


Free on Board(FOB) is the most frequently used price quotation in the international market. Under this quotation, the exporter undertakes to pay all expenditure till loading of goods on board the ship, including documentation charges. All expenditure thereafter, such as ocean freight, marine insurance, unloading charges, etc., are borne by the importer.

 

Seller’s Obligations:

(a) To provide goods and commercial invoice, or its equivalent electronic message, in conformity with the contract of sale.

(b) To obtain any export licence or other official authorization and carry out all the customs formalities necessary for the exportation of goods.

(c) To deliver goods on board the vessel at the port of shipment on the date, or within the period stipulated.

(d) To give buyer sufficient notice that the goods have been delivered on board the vessel.

(e) To pay the costs of checking quality, measuring, weighing, counting, packing and marking of the goods.

 

Buyer's Obligations:

(a) To pay the price as provided in the contract of sale.

(b) To obtain import licence or other official authorisation and carry out all customs formalities for the importation of goods.

(c) To take the delivery of goods when the goods have been delivered in accordance with the terms of the contract.

(d) To reserve necessary shipping space and give due notice of the same to the exporter; and

(e) To bear all costs and risks of goods from the time when they shall have effectively been passed the ship’s rail.

 

 

What is SGS Inspection in Exports and Imports?

What is shipment Advice and what are the contents of shipping advice

What is Shipper Load, stow and count in Bill of Lading

What is Test Report in Import clearance
What is Shut out in export trade
What is swift transfer in import and export trade.
What is Tail Gate exam hold in US import clearance
How to make DA mode of payment safe
How to make delay in delivery of Shipment?
How to obtain a duplicate BL, if original bill of lading lost.
How to obtain GSP - Certificate of Origin?

 


How to obtain Phyto sanitary certificate. What is phytosanitary certification
What is THC - Terminal Handling Charges
What is the difference between BAF and CAF
What is the difference between High sea sales and imports
What is the difference between re-exports and re-imports
Transhipment - A redefinition
Types of Insurance Documents

Travelers to India under import duty exemption, Frequently Asked Questions Part 2

Triangular export

Triangular shipment

Types of Insurance Documents.

 

 


Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers