Define the shipping term FOB in detail.

FOB - Free On Board (Port of Shipment)

 

If terms of delivery of a transaction are on FOB means, the cost of movement of goods on board of ship nominated by the buyer at the named port of shipment is borne by the seller. Rest of all expenses to arrive the goods at buyer's premise must be met by the buyer. If both parties do not consent to have goods delivered on board, then FCA is the term to be used.

FOB suits better for bulk cargo and not containerized cargo. For containerized cargo use FCA is the most prescribed term to use.

This term can be used for Sea and Inland water transport only.

 

Obligation and expenses of seller:-

All responsibilities and charges should incur by seller include Warehouse Services, Export packing, assistance in obtaining any exports licence or other official authorisation, loading at point of Origin, Origin Inland Freight, Origin Port Charges, Export Customs clearance, Origin Forwarder Fees.

The risk passes to the buyer from the seller when the goods are on board the vessel.

 

Obligation and expenses of Buyer:-

All responsibilities and charges must incurs by Buyer includes Ocean/Air Freight, Destination Port Charges, Import Customs clearance , Import Duties and Taxes, Delivery cartage to Final Destination.

 

 

 

Learn Exports Imports Free, Click here

Click here to know GST rate of your goods or service

 

 Offices to obtain RCMC

Who can inspect import cargo in US

Who decides shipping carrier on FOB shipments

Who gets benefited with my articles in this website

Options under central excise clearance

Packing of export goods - How important in International business?

Parties in LC

 Payment procedures in Triangular exports

How to Import to Benin?

How to export from Belize?

How to import to India from Belize?

How to export from India to Belize?

How to export from Rwanda?

How to Import to Rwanda?

How to import to India from Rwanda?

How to export from India to Rwanda?

Applicable import duty after GST implantation

How to calculate IGST under imports?

Changes in IEC after GST

Linking IEC with GSTIN in customs

Import under EPCG after GST

GST on imports by EOUs and SEZs

Unique Transaction Reference number (UTR) Means

Term Treatment for Zero Rated Supplies under GST

Transportation of goods without issue of invoice under GST

Meaning of Transitional arrangements for ITC under GST

Transition provisions under GST

 



Comments


Sankar : How do i import cashews kernals from Vietnam? Can any body help us to import cashew nuts from vietnam or costarika in small quantities. WhatsApp no. 09440775286

Discussion Forum

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