a term of pricing which shows the mentioned price on documents covers all the costs including the transfer of products on the overseas ship provided or for the customer.

What is FOB (Free on board) 1 a term of pricing which shows the mentioned price on documents covers all the costs including the transfer of products on the overseas ship provided or for the customer.FOB or “Free On Board,” is a term in international commercial law indicating at what point the relative obligations, costs, and risk involved in the shipping of products, shift from the seller to the customer under the Incoterms standard published by the International Chamber of Commerce.

This is a trade term that indicates whether the seller or the customer is responsible for products that are damaged during transport. “FOB shipping point” or “FOB origin” means that the buyer is at risk when the seller ships the merchandise. “FOB destination” means the seller retains the risk of loss until the products get to the purchaser.

Leave a Reply