Difference between revisions of "Free on Board"
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FOB values also serve as a reference for import and export valuation shipment, all costs of inland transportation and loading being included in the price of the products. The buyer has to bear all costs and risks of loss of or damage to the products from that point. | FOB values also serve as a reference for import and export valuation shipment, all costs of inland transportation and loading being included in the price of the products. The buyer has to bear all costs and risks of loss of or damage to the products from that point. | ||
| + | The market value at the customs frontier of a country’s exports of merchandise, including all costs of transporting the goods to the customs frontier, export duties, and the cost of loading the goods onto the carrier unless the latter cost is borne by the carrier.<ref>Concepts and Methods of the US Input-Output Accounts. K.J.Horowitz, M.A.Planting, 2009</ref> | ||
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| + | == References == | ||
| + | <references/> | ||
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| + | [[Category:EEIO]] | ||
[[Category:Supply Chain Finance]] | [[Category:Supply Chain Finance]] | ||
Latest revision as of 22:45, 13 November 2023
Definition
Free on Board. (FOB) It is, under this term, the price of the products quoted by a vendor including transport,insurance, and loading costs incurred until the merchandize is loaded on board the vessel.
The vendor fulfills its obligations when the products are boarded at the named port of shipment. The buyer has to bear all costs and risks of loss or damage arising from the point of loading.
The term FOB can only be used for sea or inland waterway transport. When the ship's rail serves no practical purpose, such as in the case of roll-on/roll-off container traffic, the term free carrier is more appropriate.
FOB values also serve as a reference for import and export valuation shipment, all costs of inland transportation and loading being included in the price of the products. The buyer has to bear all costs and risks of loss of or damage to the products from that point.
The market value at the customs frontier of a country’s exports of merchandise, including all costs of transporting the goods to the customs frontier, export duties, and the cost of loading the goods onto the carrier unless the latter cost is borne by the carrier.[1]
References
- ↑ Concepts and Methods of the US Input-Output Accounts. K.J.Horowitz, M.A.Planting, 2009
