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WHAT does FOB mean????

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Old 04-19-2001, 10:16 PM
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WHAT does FOB mean????

going to order a set of AFR heads tomorrow but I first need to know what FOB means. In the catalog, under shipping and freight, it says 'All pricing is FOB Airflow Research, Pacoima,CA 91331'. What does FOB mean?
Old 04-19-2001, 10:50 PM
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please hurry-i need to know within 45 minutes!!!
Old 04-20-2001, 12:06 AM
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FOB Destination
A term relating to transportation charges meaning that the supplier bears the transportation costs to the destination.

FOB Shipping Point
A term relating to transportation charges meaning that the buyer bears the transportation costs from the point of origin.

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Old 04-20-2001, 12:07 AM
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Oops..looks like its too late sorry
Old 04-20-2001, 07:35 AM
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It means freight on board. It's an industry term for the point at which delivery takes place.

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Old 04-20-2001, 08:05 AM
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Yes, both the posts are correct. It also implies the point where "title to the goods transfers and the risk of loss".

If the term is FOB Destination, the seller pays for the shipping costs, the title to the goods transfers when the goods arrive and should the goods get lost or damaged in transit, it is the seller's problem.

If the term is FOB Origin, the purchaser pays for shipping costs, the title to the goods transfer at the origin and should the goods get lost or damaged in transit, it is the purchaser's problem. At FOB Origin, all the seller has to do is have the goods "segregated from his regular stock and ready for shipping" to make the goods technically the purchasers.

Lastly, if no FOB point is mentioned or included in the terms of the contract (either the Purchase Order or Sales Invoice in absense of a PO), then FOB Origin is the implied term.

I deal with the stuff all the time.
Old 04-20-2001, 02:53 PM
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Gawd I hate Incoterms (FOB, FCA, FAS, CIF, DDU...)

Now on top of that I'm having to learn NAFT trade shipping/duty requirements.

Now work is bleeding over into my hobbies too!

yuk

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Old 04-20-2001, 08:47 PM
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out here it means Fresh Off the Boat


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[This message has been edited by Mo (edited April 20, 2001).]
Old 04-21-2001, 12:34 AM
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so in other words if its FOB origin, its a lose-lose for me-i pay the shipping and im responsible for transit problems?
Old 04-21-2001, 12:38 AM
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Not necessarily. Where I live, if the item you are shipping is OWNED by you, the shipping costs are not subject to taxes (FOB origin is exempt since you own it).

But if the item being shipped is NOT owned by you, then the shipping costs are subject to tax (i.e. FOB Destination).

So there are advantages to FOB Origin, but it depends on your local State/Province's tax laws.

Offer void in the State of Tennessee.
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