FOB -Meaning

EOU means Export Oriented Unit

EOU means Export oriented unit

FOB stand for Free on Board i.e.all expenses till the goods are boarded on to the ship will be borne by exporter.

CIF stands for Cost Insurance Freight which implies that all the expenses till the port of Destination should be paid by exporters.

pls give me the meaning of fob

fob

(FOB) {+ The named port of shipment} FOB contract places more responsibility on the seller than the aforementioned contracts.  The seller undertakes to place the goods on board a ship that has been named by the buyer and that is berthed at the agreed port of shipment.  All charges incurred up to and including the delivery of the goods on board ship have to be borne by the seller while the buyer has to pay all subsequent charges, such as storage of the goods, freight, insurance, unloading, import duties and the incidental charges due on arrival at destination.  The liabilities of the parties arising under a F.O.B contract are sometimes defined by usage prevailing in a particular trade or particular port.  By such a trade usage in existence, the FOB delivery is converted into FAS delivery.

      Cost, Insurance & Freight: (CIF)  {+ The named port of destination} This is the most characteristic export term which the custom of the merchants have evolved.  The term CIF is more widely and more frequently in use than any other contract used for purposes of sea borne commerce.  From the business point of view, the purpose of the CIF contract is not a sale of the goods themselves but a sale of the documents relating to the goods.  The CIF contract is a contract in which the seller discharges his obligations as regards delivery by tendering a bill of loading covering the goods.

                                       The buyer’s aim is to obtain, as early as possible the right of the disposal of the goods or to secure the bank advance and to obtain either the goods or, if they are lost, the insurance money.  The seller’s aim is to accommodate the buyer and to secure for himself profits.  The aims of both the parties are attained when the buyer effects payment in the stipulated manner against the delivery of the documents relating to the goods.