by Tekle Sebhatu
Question:
Hello, I was wondering, with FOB, when does the responsibility for the shipment pass from seller to buyer? Thank you.
Answer:
FOB - Free on board (named port of shipment) is the most preferred pricing term by exporters. FOB indicates that the price quoted includes the cost of loading the goods into the ship. The responsibility from the seller to the buyer passes once the goods are on board the ship (loaded). Remember, the exporter is responsible to obtain export clearance, including license to export if required. According to Incoterms 2000, FOB is only used when the mode of transportation is sea or inland waterway transportation.
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Related Comments
Re: FOB - Responsibilities of buyers and sellers
by Deepali on 20 Nov 2006 21:37
Replying to [Resources]: In case of FOB prices who is responsible for the floating policy I mean transit insurance. ![[em9]](http://img.alibaba.com/images/eng/style/icon/emoticons_dizzy.gif){kind=icon}
Re: FOB - Responsibilities of buyers and sellers
by RichardCao on 23 Jan 2007 22:57
Replying to [Resources]:
Yes, the google.com is a very good teacher for us.
Re: FOB - Responsibilities of buyers and sellers
by PAFoods on 06 Feb 2007 00:55
Replying to [Resources]:FOB means Free On Board. Responsibilities of seller transfer to buyer when goods on board and all documents dispatched to buyer and Responsibilities of buyer transfer to seller when buyer pay complete payment.
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