What Is F O B On An Invoice
Cost insurance and freight cif and free on board fob are international shipping agreements used in the transportation of goods between a buyer and a seller.
What is f o b on an invoice. Fob is always followed by a designation to indicate when the seller s obligation ends. For eg if an exporter from mumbai and his invoice says fob mumbai then he pays all the costs like haulage customs clearance origin documentation charges demurrage if any origin port handling chargesupto the port of mumbai. An abbreviation for free on board which means that a vendor or consignor will deliver goods on a railroad car truck vessel or other conveyance without any expense to the purchaser or consignee.
Fob destination is a shipping term that means that the legal title to the goods remains as inventory with the seller until the goods reach the location of the buyer. If your invoice says fob your address it means the shipping costs were included in the price listed on the invoice. The acronym fob which stands for free on board or freight on board is a shipping term used in retail to indicate who is responsible for paying transportation charges.
For most retailers the fob type is referenced on all documents including the invoice for payment. Fob on an invoice stands for free on board or freight on board and refers to the point after which a business shipping products to a buyer is no longer responsible for the items. Free on board fob.
Free on board fob is a trade term that indicates whether the seller or the buyer has liability for goods that are damaged or destroyed during shipment between the two. Fob free on board is a term in international commercial law specifying at what point respective obligations costs and risk involved in the delivery of goods shift from the seller to the buyer under the incoterms standard published by the international chamber of commerce fob is only used in non containerized sea freight or inland waterway transport.
