Recently updated on April 15th, 2021 at 03:00 am
Usama Muhammad (Branch Manager at United Bank Limited, Pakistan): I have recently started trading business which mainly includes export of different products from China. Since I am new in the field, can anyone tell me what do FOB rates mean, because whenever i try to interact with any company in China & ask them to quote the prices including freight charges, most of them use this term but unable to make me understand about that.
Stephen Brown(Director at EBL Training Solutions Ltd): Hi, FOB means ‘free on board’ This means your supplier or factory in China manufactures your product and transports it to the ship rail. They are responsible for the costs to that point only( including customs clearance in China) and then you as the buyer are responsible for the shipping freight cost and insurance etc to have the product delivered to your warehouse.
FOB is an ‘Incoterm’ which outlines many terms and defines responsibilities for seller and buyer.
Peter Hu(Sales Manager at S & P International Express Co.,Ltd(DHL,UPS Pricing for on sale globally)): Hi Usama,under FOB trading terms, mean yourself need to care about the shipping from ports of China to your door. but that’s not a problem,we can help you ship it as a global forwader from China. as all we know, Pakistani brothers are our always friends in the world. Hope that we can be any of help to. If you have any problem when you buy something in China or want to know about the business practices in China, I can help you solve it. Any questions, pls feel free to let me know.
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