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What is the FOB Destination?
Free on board destination (FOB Destination) means the supplier transfer his ownership to the buyer once the items reached in the buyers destination only. Normally in this case supplier will arrange the freight and other related cost until the destination
FOB destination is a form of shipping terms that means the legal title to the goods remains with the seller until the goods reach the location of the buyer.
FOB destination is a contraction of the term "Free on Board Destination." The term means that the buyer takes delivery of goods being shipped to it by a supplier once the goods arrive at the buyer's receiving dock.
FOB is a Import or Export transaction word. FOB means Freight on Board.
When a seller is exported good to other country with bearing all risk ( i.e Transporting cost, insurance & Others charges) to deliver the goods to destination place of Buyers. Such Transaction is called FOB Destination.
I agree with the answers above
FOB, Free on board is the arrangement where seller needs to bear all the responsibilities (incl. freight and insurance) to bring the goods up to board for the loading them onto the specified ship.
Hence, the seller must get the goods ready for export and load them onto the specified ship.
However, FOB destination is the arrangement where seller must bear all the responsibilities up to the final destination.
The FOB, Free On Board, is an arrangement in which the Seller transfers the ownership, and therefore responsibilities, to the buyer when the goods are boarded on the ship. In case of FOB Destination, the seller bears the responsibility till the final destination of the goods.
FOB destination is a contraction of the term "Free on BoardDestination." The term means that the buyer takes delivery of goods being shipped to it by a supplier once the goods arrive at the buyer's receiving dock.
serach result from google. I heard about FOB, but i don't had knowledge of it. Thanks to learn it Sir.
FOB is a term used in international trade. The abbreviation FOB means Free On Board. FOB Destination is equivalent to CIF i.e. Cost Insurance Freight. FOB destination means, the seller or the exporter would bear the freight and insurance till the destination of importer-buyer. In the price he would quotes for sale, he would include the freight and insurance till destination.
Terms indicating that the seller will incur the delivery expense to get the goods to the destination. With terms of FOB destination the title to the goods usually passes from the seller to the buyer at the destination. This means that goods in transit should be reported as inventory by the seller, since technically the sale does not occur until the goods reach the destination.
FOB is a payment term which stands for free on board/ Freight on board. It means the supplier will arrange delivery of goods till port. All the expenses to arrange goods till port are on supplier under FOB.
