What Is FOB In Shipping? – Let’s Find Out

FOB, or Free On Board, is a shipping term that determines when ownership and liability for goods shift between the buyer and seller.

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FOB Origin places the responsibility on the buyer for shipping, while FOB Destination keeps it with the seller until the goods reach their final location.

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FOB affects various aspects of product delivery, including inventory, shipping, and insurance.

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FOB pricing impacts accounting systems, and the timing of ownership transfer affects when a sale is recorded.

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The FOB law, defined by the International Chamber of Commerce, has a global reach, originating from a time when goods were transported by ships.

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