I would like to see the comments from everyone!
Thanks everybody!
Crystal
Quoting from [Crystal518]:
Like in the topic, I am a novice, I would like to know "How to define FOB fee is correct?" which kinds of fee it contained?
I would like to see the comments from everyone!
Thanks everybody!
Crystal
Free On Board
F O B
Normally goods are shipped: So when we send the goods through ships,we transport the goods from our warehouse to the port and load tot he ship:
We fix the price upto the shipping is called FOB price
FOB does not have a fee as such. It is a supplier quoting a price for a product which includes the delivery of that product to the port agreed upon.
It also defines who owns the product at what point. Using FOB the Supplier OWNS the product up to the point where it p the ships rail. Once the product is over the rail of the ship ownerships p to the BUYER.
So once a container is lifted onto the ship at the port the BUYER is responsible for the goods.... the Seller is responsible for the goods up to the side of the ship only.
Hope that helps and for more terms on shipping or payment types please see this post.
http://resources.alibaba.com/topic/22753/Every_Trade_Term_FOB_CIF_L_C_etc_.htm
Free On Board (FOB) is an incoterm -- also commonly but incorrectly referred to as "Freight on Board". It means that the seller pays for transportation of the goods to the port of shipment, plus loading costs. The buyer pays freight, insurance, unloading costs and transportation from the port of destination to the factory. The passing of risks occurs when the goods pass the ship's rail at the port of shipment. Internationally the term specifies the port of loading, e.g. "FOB New York" or "FOB Vancouver".
For example, in the USA it is still used as a left-over of the long-discontinued "Foreign Trade Definitions" of 1941, with at least four different versions which can lead to confusion.
Domestically within the United states and Canada, the term is used in two common phrases, "FOB shipping point" and "FOB destination," to distinguish when the title of goods p from the seller to the buyer. Under the terms of "FOB shipping point," the title of the goods p to the buyer at the shipping point. Similarly, under the terms of "FOB destination", the title of the goods p to the buyer when the goods arrive at their destination. The distinction is important because it determines who pays for the shipping costs of the merchandise: whoever holds the title to the merchandise at the time of its shipping pays for its transportation costs unless otherwise noted (e.g., freight prepaid or freight collect). Also, it is important that if the shipment is damaged while traveling the owner must file the freight claim.good luck
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What is practiced in USA and Canada in your example should not be practiced worldwide. This is what the ICC National Committee and ICC Working Group called 'the misappropriation' of the trade term, particularly FOB. This is also one of the reasons why FCA term is revised.
Freight on board
lorry and goods cost..that's all..
whent reached board its not our responsibility anymore.
they have to check the item reach the port is good condition
Free On Board.
That is to say, the price based on FOB is the cost of the goods+freight to board of ship.
I am also new to this field, but the way you explained the term is beautiful. and it shows clearly that what it is and whats are the rights of companies, normally seller avoiding these things.