Free on Board Shipping Point

Categories:

Accounting

| Contributor:

Hoang Truong

Tags:

Business Process

Definition

Free on Board Shipping Point(FOB) is the situation when buyer takes the delivery of goods of its supplier when the goods leave the supplier's shipping dock( when the goods leave the port)

Example

A company in China has a supplier in Brazil, once the goods get shipped from the Brazil port, the goods recognise as goods in transit and the situation is called Free on Board shipping point

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Free on Board Shipping Point

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