FOB price

FOB means Free On Board. This is only a cost Amount . If the value included Insurance & frieght then it will be CIF (Cost Insurance Frieght) and for Cost and Freight the  term used is CFR.

For more details please go through with https://www.caclubindia.com/forum/know-international-commercial-terms-used-in-export-import-39662.asp

>> Rajesh

mr. dilip,

FOB = COST OF GOODS SOLD IN INDIAN RUPEES .

CIF= COST OF GOODS SOLD WITH INSURANCE AND FREIGHT

SUPPOSE,

IF YOU SOLD THE GOODS IN USA OF 4000.00 USD

AND 1 USD RATE IS RS. 45.00

YOUR FOB IN INDIAN RS. IS:- 4000*45 = RS. 1,80,000.00

AND IF FREIGHT IS 400 .00USD

AND INSURANCE IS 600.00 USD

NOW, YOUR FOB IN USD =4000(-)1000= 3000.00 IN USD

AND IN INR FOB  WILL :- 3000*45=  RS. 1,35,000.00

AND ACCORDING EXPERT YOU GO TO PATH:-

 https://www.caclubindia.com/forum/know-international-commercial-terms-used-in-export-import-39662.asp

RAMESH KUMAR VERMA