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When the terms of sale are FOB shipping point the does the buyer pay the transportation charges?
Wiki User
∙ 14y ago
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.
Wiki User
∙ 14y ago
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What is the definition of free domicile?
"Free Domicile" is still a widely used pricing term to describe when the shipper pays all the applicable duties and all the transportation and other charges until delivered to the buyer's premises. The term is being replaced by Incoterm "DDP - Delivered Duty Paid ... named point of destination." "Free Domicile" is still a widely used pricing term to describe when the shipper pays all the applicable duties and all the transportation and other charges until delivered to the buyer's premises. The term is being replaced by Incoterm "DDP - Delivered Duty Paid ... named point of destination."
Can you capitalize shipping costs?
Yes but only if it's fob shipping point
What does a train symbolize?
it can symbolize transportation. from one point to another
Define freight costs plus handling?
"Whatever we think we can get away with charging." Freight costs is simple: it's whatever the shipping company charges to deliver the package from point A to point B. Handling is a lot more complicated. At one place I worked, "order fulfillment" was its own division of the company, and it charged other divisions a flat fee per order plus a line item fee for each different item on that order. This was done to take advantage of economies of scale but still have each division be responsible for its own shipping costs instead of "sponging" off the rest of the company.
Why use incoterms?
Inco terms is an abbreviation of International Commercial Terms. The goal of the Inco terms 2010 is to alleviate or reduce confusion over interpretations of shipping terms, by outlining exactly who is obligated to take control of and/or insure goods at a particular point in the shipping process.
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 the buyer is to pay the transportation coats of delivering merchandise delivery terms are stated as?
FOB Shipping point
Prepay and add mean?
Prepay and add refers to the shipping charges on an invoice. The Seller pays freight charges and adds to invoice. Title and control of the goods passes to the buyer when the carrier signs for the goods at the shipping point (origin) So, the Seller pays freight and bills them to the Buyer who bears the freight charges, the Buyer owns the goods in transit, and the Buyer files any necessary claims.
Who pays shipping insurance for FOB shipping point?
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.
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 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 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.
If title to merchandise purchases passes to the buyer when the goods are shipped from the selle the terms are?
FOB shipping point
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.
What is the definition of free domicile?
"Free Domicile" is still a widely used pricing term to describe when the shipper pays all the applicable duties and all the transportation and other charges until delivered to the buyer's premises. The term is being replaced by Incoterm "DDP - Delivered Duty Paid ... named point of destination." "Free Domicile" is still a widely used pricing term to describe when the shipper pays all the applicable duties and all the transportation and other charges until delivered to the buyer's premises. The term is being replaced by Incoterm "DDP - Delivered Duty Paid ... named point of destination."
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.
What factor must the exporter consider when marketing a decision on price quotation?
The single factor would be point of delivery. If your point of delivery leaves all export and import to the buyer there is no need to investigate; shipping, restrictions, taxes and fees, shipping costs, etc.
