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Certain underwriters allow any party to cover and pay for shipping insurance. You may also include the transportation costs as well.
Typically the buyer did pay the insurance but that is not required any longer.
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∙ 11y ago
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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.
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 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.
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.
If buyer pays the freight cost of delivering merchandise what is the delivery term?
Free On Board Destination (FOB Destination). This means that the seller pays the the freight costs from the shipping point to the buyer's final destination.
Can you capitalize shipping costs?
Yes but only if it's fob shipping point
What does the term FOB mean export?
FOB is an abbreviation for Free On Board. The term FOB (often seen as f.o.b.) is commonly used when shipping goods, to indicate who pays loading and transportation costs, and/or the point at which the responsibility of the goods transfers from shipper to buyer. FOB shipping is the term used when the ownership/liability of goods passes from the seller to the buyer at the time the goods cross the shipping point to be delivered. FOB destination designates that the seller is responsible for the goods until the buyer takes possession. This is important in determining who is responsible for lost or damaged goods when in transit from the seller to the buyer. The buyer is responsible when shipped FOB shipping and the seller is responsible if shipped FOB destination. CAP, or customer arranged pickup, is used to denote that the buyer will arrange a carrier of their choice to pick the goods up and the liability for any damage or loss belongs to the buyer.
What is difference between Fob Cif and cfr?
In the United States FOB is used for domestic shipping and CFR for international shipping. FOB means Freight on Board or Free on Board or the shipper loads the truck or train car. The buyer is responsible for shipping fees. In the United States, the trucking line or Rail Road Company is responsible for the cost if the merchandise is destroyed in an accident. CFR means the shipper pays the expenses of getting the shipment onto the boat or airplane. Shipping fees are the responsibility of the buyer. Insuring the merchandise incase of shipwreck or piracy is also the responsibility of the purchaser. CIF means the seller pays for the expenses of getting the freight loaded, the insurance, and the freight.
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.
What is the difference between CNF and FOB?
FOB = Free On Board. It's the physical geographical point at which title (and the risk of loss) transfers to the buyer from the seller. It can be the shipping point, delivery point, or any intermediary waypoint such as an ocean port on either end. The buyer is responsible for shipping charges from the FOB point onwards as well. CNF = Cost, No Insurance & Freight. The cost of the goods plus freight charges. The buyer is responsible for any insurance costs. This is usually the best way as it allows the buyer to use a local insurance carrier of his choice. See CIF below. CIF = Cost, Insurance & Freight. As above but includes insurance purchased by the shipper. Not a wise idea on international shipments as it may be difficult to file a claim. And the shipper chooses the insurance carrier so rates are often higher.
If the buyer is to pay the transportation coats of delivering merchandise delivery terms are stated as?
FOB Shipping point
If title to merchandise purchases passes to the buyer when the goods are shipped from the selle the terms are?
FOB shipping point
