One of the most important commercial terms related to merchandise business, which is a turning point in the business of obligations and costs that are linked to the process of delivering goods that are between the seller and the buyer by means of criteria for the chambers of commerce, but this term FOB is specific to the shipping process only and is dependent on things that have been Filling on containers or water transport operations, as this term does not specify the point of arrival of the goods.
The use of this term in domestic shipping, which is shipping within the United States, in order to describe the point at which the seller is committed and is responsible for all shipping costs, so we will get to know more about international trade terms and the method of transporting goods by sea.
Also read: Conditions for Delivery of Goods in Domestic or Local Trade
What is FOB Price?
Follows a group of basic standards and conditions related to international trade operations, as it is used on maritime shipping only, which is an abbreviation of the word Free On Board, which is one of the terms used in all places designated for downloading, which indicates this term that the seller must be obligated to pay fees for a transfer The goods to the port are subject to shipping. Also, the process of transportation, unloading, and insurance must be cleared of all customs procedures and attention to providing official documents and papers related to transportation. In the event of a delay, a fine will be paid and there will be a control fee related to the port, for this it is necessary to know all the conditions and basics to perform a successful transfer.
Also read: Payment Methods of Import and Export
The Use of the FOB Term
It has been in operation for several years and is equivalent to 30 years, and this is since the sailing ships were invented, and this is from a distant time period where sea transportation was used to transport goods from city to city, and this term is the most widespread and is used by a large group of people doing business Import and export, and due to the confusion that occurs during the transfer process, everyone must bear responsibility for the actions that he performs. From the original American words that are dealt with in America and after other countries, where each country has some of its own terms because Egypt has a set of terms And Saudi Arabia thus, but these terms must be recognized in order to facilitate dealing with them in the operations of transporting goods. It has two different terms that must be recognized as well as things that cannot be changed permanently, as it is advised to familiarize yourself with all the terms related to each of these terms according to the state on which they are based, and after that, the sales are completed so that each of the parties is aware of the details that are Submission for the purpose of this agreement and the used terms, the transportation and shipping process is one of the main factors that are taken care of and get to know all its terms.
Also read: A Comprehensive Illustration of Shipping Containers