Free on Board (FOB)

 
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Free on Board (FOB)

Free on board (FOB) is a term that specifying at what point respective obligation, risk, and cost involved in the delivery of goods move from the buyer to the seller under the Incoterms 2010, it as well means a trade term which indicates whether the buyer or the seller has liability for goods that are destroyed or damaged during shipment between the two parties. The buyer and a seller agree on a designated FOB point."FOB shipping origin" (or point) indicates that the buyer is at risk while the items are shipped, and "FOB destination" mean that the seller bears the risk of loss until the goods get to the buyer destination.

This entry was posted in dictionary on August 12, 2017 by Tanushka.