Who is Liable for What in Shipping when Using the Free on Board (FOB) Term?
What are the four types of inventory? There are four types of inventory:
1. Raw materials
2. Work-in-progress (WIP)
3. Finished goods
4. Maintenance, repair and operations (MRO)
1. Raw materials are the unprocessed inputs used in the production of goods. Examples of raw materials include metals, oil, and grains.
2. Work-in-progress (WIP) inventory refers to goods that have been started but not yet completed. WIP inventory is also known as semi-finished goods.
3. Finished goods are completed products that are ready to be sold to customers.
4. Maintenance, repair and operations (MRO) inventory consists of the spare parts, tools and materials used to maintain and repair equipment. When the seller and buyer agree to Free on Board what does the buyer pay? The buyer pays for the goods when they are delivered to the carrier, and the seller pays for the transport of the goods to the buyer. Who is responsible for shipping in FOB? The term "FOB" stands for "Free On Board." This means that the seller is responsible for shipping the goods to the buyer, and the buyer is responsible for paying for the shipping. What does the term free on board FOB mean? The term free on board (FOB) means that the seller is responsible for delivering the goods to the buyer, and the buyer is responsible for paying for the shipping. The buyer is also responsible for any taxes or duties that may be due on the goods. How does FOB work shipping? FOB stands for "Free On Board." This term is used in international shipping to indicate who is responsible for paying the costs associated with shipping the goods. The FOB terms are typically used in contracts to specify which party is responsible for the costs of shipping. The FOB terms are also used to determine which party has the title to the goods being shipped. The FOB terms are important to understand because they can have a significant impact on the cost of shipping goods.
The most common FOB terms are "FOB origin" and "FOB destination." Under the FOB origin term, the seller is responsible for the costs of shipping the goods to the buyer. The buyer is responsible for the costs of shipping the goods from the seller's location to the buyer's location. Under the FOB destination term, the buyer is responsible for the costs of shipping the goods to the buyer's location. The seller is responsible for the costs of shipping the goods from the seller's location to the destination.
It is important to note that the FOB terms do not impact who is responsible for the costs of insurance or customs duties. The FOB terms only impact who is responsible for the costs of shipping the goods.