when things are being purchased internationally what does the term F.O.B stand for?
i know it has something to do with shipping but not 100% sure.
thanks
fresh off the boat ^^.
lol, nah, it stands for free on board. as dictionary.com explains…
Without charge to the purchaser for delivery on board or into a carrier at a specified point or location.
freight on board is what I originally thought it meant. Now that I looked it up it’s…
Free on Board
“The seller fulfills his obligations to deliver when the goods have passed over the ship’s rail.” – http://www.investopedia.com/terms/f/fob.asp
In other words the seller is responsible for the goods until they are on the ship. The buyer bears all costs and risks of loss or damage to the goods from that point forward. The proper way of using it is to say FOB [port of shipment].
Say if you’re sending an R32 from an auction house in Sapporo to a shipyard in Yokohama, you’d put “F.O.B. Yokhohama” if you wanna be all fancy shmancy proper about it. It means you as the seller are responsible for delivering the car past the rail on the ship. Once it’s on there it’s out of your hands.
ok…
so if i were to buy say a sony PSP from china FOB
is he including shipping?
or is he just waiving liability when it hits the outbound port?
Sounds like as soon as that package leaves his hands, and is on the boat, you are responsible for everything. I would think this means that he will get it ON the boat, it is just your responsibility once that happens. Correct me if I am wrong…
exactly, he has full responsibility for getting it too the boat and over the ships rail, after that you have to cover duty, and are responsible for damages during shipping (insurance)
do shipping charges work differently then?
if he is getting it on the boat then i wouldnt have to pay the shipping. just insurance and duty.
dont we pay for insurance when we pay for shipping?
who has done this before?
My first GTR was shipped FOB… supplier dealt with everything UP TO the port in Osaka, then I paid/managed the rest of the way.
CIF terms is what my new one is being shipped with… Everything is covered until the port in New Westminster (BC).
If you ever hear of EX WORKS… run like a motherfucker… that means you are responsible for getting it shipped from WHEREVER IT IS in the other country, to you. The seller isnt even responsible for taking it to a shipping centre or anything.
Spell check performed by MajicMunky
Hey Justin, what does CIF stand for?
btw nice car 
www.google.ca > you
apparently not…
CIF: Cost, Freight and Insurance
basically it means the seller is responsible for paying shipping as well as well as insurance.
HOWEVER, seller only has to pay for the minimum insurance. If you want more coverage, you gotta take care of that yourself.