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FOB - Free on Board
FOB is one of The 11 Incoterms® rules:
RULES FOR SEA AND INLAND WATERWAY TRANSPORT
FASFree Alongside Ship
FOBFree On Board
CFRCost And Freight
CIFCost, Insurance and Freight
RULES FOR ANY MODE OR MODES OF TRANSPORT
EXW Ex Works
FCA Free Carrier
CPT Carriage Paid To
CIP Carriage And Insurance Paid To
DAT Delivered At Terminal
DAP Delivered At Place
DDP Delivered Duty Paid
Freight on Board or Free on Board.
It's about shipping and responsibility. Attached article gives a good discussion of the terms and how they differ by use/country.
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Can you capitalize shipping costs?
Yes but only if it's fob shipping point
When the terms of sale are FOB shipping point the does the buyer pay the transportation charges?
yes, FOB means - free on board-(the ship) the term you are looking for is CIF (Cost Insurance Freight) - that includes all shipping charges to land cargo in a port - from that point its the buyers responsibility - any port charges to be paid / demurrage / stevedoring / and of course inland freight like trucking.
If the buyer bears the freight costs related to a purchase the terms are said to be FOB destination. is it true or false?
It is false. FOB destination means that the shipper bears the responsibility for shipping, including costs and liability.
What is fob rmb?
FOB = Free on board. In shipping terms it means without charge to the purchaser for delivery on board or into a carrier at a specified location. RMB = Ren Min Bi, the currency of the People's Republic of China.
What is FOB source?
FOB is an initialism which pertains to the shipping of goods. Depending on specific usage, it may stand for Free On Board or Freight On Board (from Wikipedia)
The shipping term FOB stands for what?
free on board.
What is the definition of FOB shipping point and FOB destination point?
FOB Destination means that the seller owns the goods until the buyer receives them. Therefore, the seller pays the shipping costs. FOB Shipping means that the buyer owns the goods once they are shipped. Therefore, the buyer pays the shipping costs.
How do I jounal the FOB shipping point?
FOB shipping means the purchaser is paying the shipping charges. If you are the seller debit the charge to the buyer and credit the charge to the shipping company.
What is the difference between FOB destination and FOB shipping point?
FOB (Freight On Board) Destination and FOB Shipping specifies whether the buyer or seller owns the goods, and therefore, who pays for the shipping and includes the items in their inventory. FOB Destination means that the seller owns the goods until the buyer receives them. Therefore, the seller pays the shipping costs. FOB Shipping means that the buyer owns the goods once they are shipped. Therefore, the buyer pays the shipping costs.
What is Freight term FOB?
FOB means Freight on Board. It means the seller is responsible to load the freight on the truck and the buyer is responsible to pay the freight costs from the dock to the destination. Prices are sometimes followed by FOB . For example car prices are listed as FOB Detroit. This means the price without shipping added.
Meaning of fob value in shipping?
The abbreviation FOB in the shipping industry means Free on Board or Freight on Board. The invoice that has this abbreviation on it means that the seller is paying for the freight charges.
What does fob and fis and cnf mean when shipping imports?
When shipping imports, the acronym FOB stands for "Freight on Board". FIS means "Free in Store", and CNF is for "Cost and Freight".
What is FOB foshan?
Ah, FOB stands for "Free On Board," which is a common shipping term. Foshan is a city in China known for its ceramics and furniture industries. When you see "FOB Foshan," it means the seller will cover the cost of loading the goods onto the ship in Foshan, but the buyer is responsible for the shipment from there.
What is fob shanghai?
That means they will be responsible for shipping to port of Shanghai, then you are responsible for transportation from there .
How does FOB apply in a normal business transaction?
FOB literally means 'Free on Board'. So "FOB Shipping Point" means that if you buy something and pick it up yourself at the seller's shipping point, then there is no shipping cost to you. Alternatively, the common "FOB Destination" means that there is no shipping cost to get the purchased item to the destination agreed on in the contract. Example: Purchaser of a new International Harvester corn combine. Lets say a deluxe model for $600,000 dollars FOB destination. That means you pay Case/IH 600,000 bucks and they deliver a pristine new harvester to your farm with no shipping cost to you. Normally, shipping a huge piece of machinery like this across the country from their factory to your farm would be many thousands of dollars.
What does CIF mean in shipping terms?
CIF means Cost Insurance and Freight, which means the seller pays to get the load to its destination. The alternate is FOB--Free On Board--which means the buyer pays the freight and insurance.
What does FOB Ningbo mean?
According to international shipping terminology, FOB means the seller pays for transport of the goods to the city named. Ningbo is a port in the People's Republic of China, so the term means that the seller will pay transport to that city, and the buyer will pay from there onwards.
