FOB, Responsibility to bear costs to Buyer and Seller

The Exporter and Importers may use latest version of Inco Terms 2020 for movement of their goods.  Click here to read the content of Incoterms 2020, easily explained

The INCOTERM FOB (Free on Board / freight on board)  

The costs distribution to Buyer and Seller under FOB inco term

 

 Q) Under the INCOTERM FOB, who should bear all cost related with Export customs declaration?

 

Answer

 The Seller has to bear all cost related with Export customs declaration if contract is under the INCOTERM FOB.

 

Q) Who has to pay the Carriage to port of export under FOB terms?

 

Answer

The Seller is responsible for paying carriage to port of export under FOB terms.

 

Q) Who is responsible for all the cost for unloading of truck in port of export, in FOB terms?

 

Answer

All the cost for unloading of truck in port of export should be given by the Seller under the INCOTERM FOB.

 

Q) Who is obliged to bear all cost for loading the cargo on vessel/airplane in port of export under FOB terms?

 

Answer

The Seller should pay all cost for loading the cargo on vessel/airplane in port of export under FOB terms.

 

Q) In INCOTERM FOB, who should give money to Carriage (sea/air) to port of import?

 

Answer

In INCOTERM FOB, the buyer should give money to Carriage (sea/air) to port of import.

 

Q) Who should arrange Insurance for the shipment under FOB term?

 

Answer

The buyer or Selller has to arrange Insurance for the shipment under FOB term, unless othewise stated in Sale contract.

 

Q) According to the INCOTERM FOB, all the expenses for unloading the cargo in port of import are whose responsibility?

 

Answer

 The Buyer is responsible for paying all the expenses for unloading the cargo in port of import according to FOB terms of delivery.

 

Q) Under FOB INCOTERM, who should pay for Loading on truck in port of import?

 

Answer

If the contract is under FOB INCOTERM, then the buyer should pay for Loading on truck in port of import.

 

Q) Who is responsible for arranging Carriage to place of destination under FOB terms?

 

Answer

The Buyer is responsible for arranging Carriage to place of destination if the term of delivery is under FOB terms.

 

Q)Who is obliged to settle all cost for Import customs clearance in FOB terms?

 

Answer

All payment settlement for Import customs clearance in FOB terms is obliged with the Buyer.

 

Q) Import duties and taxes should be paid by whom under the FOB INCOTERM.

 

Answer

Import duties and taxes should be paid by the buyer under the FOB INCOTERM.

 

 

The Exporter and Importers may use latest version of Inco Terms 2020 for movement of their goods.  Click here to read the content of Incoterms 2020, easily explained

Learn Exports Imports Free, Click here

Click here to know GST rate of your goods or service

 

 How to differentiate BL and HBL?

 How to differentiate CPT and DAP in shipping terms

 How to divert cargo from one port to another?

 How to file bill of entry Manually. What is manual filing of Import Documents?

How to file Bill of Entry on line? What is called Noting in bill of entry

How to get exemption of Sales Tax under exports.

What happens if overseas buyer not paid export bills discounted.

What happens if proper tracking of goods not effected in export import business?

What happens if your buyer rejects cargo? What are the major problems if consignee not taken delivery of cargo?

How to get export order from foreign buyers?

How to import to India from Equatorial Guinea?

How to export from India to Equatorial Guinea?

Documents required for Export from Equatorial Guinea

Customs procedures for Equatorial Guinea Export

Registration required to export from Equatorial Guinea

How is IGST calculated under Imports?

How is IGST rate on imports treated?

GST and e-Commerce Business, FAQ

Definition of E-Commerce under GST

TDS under GST, Frequently Asked Questions

Does Interest attract on GST Tax payment delay?

Mechanism of Payment of GST tax in India

Levy of late fee for GST Tax returns filing in India

How can actual suppliers claim credit of Tax Collection at Source (TCS) under GST

Frequently Asked Questions on TCS under GST

GST Registration - Frequently Asked Questions (FAQ)

Revised GST rate on Electric Smoothing Irons

What is the GST rate on Mysore painting, Rajasthan painting, Tanjore painting?

Is GST registration required for homestays providing accommodation through an ECOs, below threshold limit


Discussion Forum

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