Fob * for
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
11 August 2012
Please tell me in respect of FOB And FOR in detail regarding import and export of goods.
Thanking you
Thanking you
Hemant Kumar
(Expert)
16 August 2012
FOB: FREE ON BOARD (FOB)
Under this term, the goods are placed on board a ship by the seller at a port of shipment named in the sales contract. The risk of loss or damage to the goods is transferred to the buyer when the goods pass the ship's rail. For air shipments, goods delivered to the carrier at the airport fulfill seller's obligations, (For RO/RO and Seller shipments, see FCA.
The seller quotes a price covering all expenses up to and including delivery of goods onto an overseas vessel provided by or for the buyer.
The seller (exporter) is responsible for delivering the goods from his place of business and loading them onto the vessel of at the port of export as well as clearing customs in the country of export. As soon as the goods cross the “ships-rails” (the ship’s threshold) the risk of loss transfers to the buyer (importer). The buyer must pay for all transportation and insurance costs from that point, and must clear customs in the country of import. An FOB transaction will read “FOB, port of export”. For example, assuming the port of export is Boston, an FOB transaction would read “FOB Boston”. If CIF is the Customs valuation basis, international freight and insurance must be added to the FOB value.
FOR: FREE ON RAIL (FOR) or FREE ON TRUCK (FOT)
"F.O.R." and "F.O.T." mean "free on rail" or "free on truck." Both refer to goods being carried by rail and should only be used when the goods are carried by rail. The risk of loss or damage is transferred when the goods are loaded onto the rail.
Under this term, the goods are placed on board a ship by the seller at a port of shipment named in the sales contract. The risk of loss or damage to the goods is transferred to the buyer when the goods pass the ship's rail. For air shipments, goods delivered to the carrier at the airport fulfill seller's obligations, (For RO/RO and Seller shipments, see FCA.
The seller quotes a price covering all expenses up to and including delivery of goods onto an overseas vessel provided by or for the buyer.
The seller (exporter) is responsible for delivering the goods from his place of business and loading them onto the vessel of at the port of export as well as clearing customs in the country of export. As soon as the goods cross the “ships-rails” (the ship’s threshold) the risk of loss transfers to the buyer (importer). The buyer must pay for all transportation and insurance costs from that point, and must clear customs in the country of import. An FOB transaction will read “FOB, port of export”. For example, assuming the port of export is Boston, an FOB transaction would read “FOB Boston”. If CIF is the Customs valuation basis, international freight and insurance must be added to the FOB value.
FOR: FREE ON RAIL (FOR) or FREE ON TRUCK (FOT)
"F.O.R." and "F.O.T." mean "free on rail" or "free on truck." Both refer to goods being carried by rail and should only be used when the goods are carried by rail. The risk of loss or damage is transferred when the goods are loaded onto the rail.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- EPF ECR NEW FILE SEP 17TH 2026
- Capital Gail Exemption Certificate
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- Oct 2025 Invoices
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- TAX AUDIT ON PROFESSIONAL INCOME
- Capitalgain tax purposes for valuation report compulsory
- Under marginal scheme
- Import of Software Service.
- Utilisation Fy 25-26 TDS challans in Fy 26-27 TDS Return
- Depreciation Chart Companies Act
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
