FOB price

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Rahul

Rahul (Querist)
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07 April 2017 Hi friends.. Can you please give me brief about FOB??

CA Gopal Somani

CA Gopal Somani (Expert)
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07 April 2017 FOB - free on board. This basically means that the cost of delivering the goods to the nearest port (of seller) is included but the buyer is responsible for the shipping from there and all other fees associated with getting the goods to his/her country/address.

CIF – Cost, Insurance and Freight. In this case, the price also includes sea freight charges and insurance to deliver the goods to Buyers' nearest port. But only to the port – from that point onwards, buyer takes the shipment into his/her hands.

Rahul

Rahul (Querist)
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07 April 2017 Thanks Gopal.. However, i got confused with CIF.. WOULD this be added to FOB price..

CA Gopal Somani

CA Gopal Somani (Expert)
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07 April 2017 In FOB price when you add Freight (Total cost of the main transport by air, sea or land) and Insurance cost (Cost of insurance for the main transport), it becomes CIF price.

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