FOB Terminology - Destination Point
FOB DESTINATION POINT
- Implies that the seller owns the goods in transit and is responsible for freight charges and assists with the settlement of claims and is responsible for full replacement of damaged items.
- Title passes at the time the goods reach their destination - the seller retains title and control until delivered and accepted by the buyer.
FOB Destination, Freight Prepaid and Allowed
- Title passes to buyer when goods arrive at buyer's location
- Seller pays freight charges
- Seller bears freight charges
- Seller owns goods in transit
- Seller files claims, if any
FOB Destination, Freight Prepaid and Added
- Title passes to buyer when goods arrive at buyer's location
- Seller pays freight and adds to the buyer's invoice
- Buyer bears freight charges
- Seller owns goods in transit
- Seller files claims, if any
FOB Destination, Freight Collect
FOB Destination - Freight Collect and Allowed
- Title passes to buyer when goods arrive at buyer's location
- Buyer pays freight when goods are received
- Buyer collects freight charges from supplier by deducting amount from invoice
- Seller bears freight charges
- Seller owns goods in transit
- Seller files claims, if any
