With a Free on Board (FOB) agreement, the seller arranges for the transport of goods to a designated port or other point of origin

With a Free on Board (FOB) agreement, the seller arranges for the transport of goods to a designated port or other point of origin. Once the seller releases the goods to the buyer, when the goods are onboard the ship, the delivery is considered accomplished. Unlike CIF, however, the point at which responsibility shifts from the seller to the buyer occurs when the shipment reaches the point of origin. With a CIF agreement, the seller assumes responsibility and pays costs until the goods reach the buyer's chosen port of destination. Furthermore, unlike CIF, FOB contracts are not limited to sea freight, and may also be used for inland and air shipments.

✳️ Terms of CIF
The specific stipulations of a CIF agreement are as follows (it is important to realize that because this is a legal term, its exact definition is much more complicated and differs by country; contact an international trade lawyer before using any trade term):

Under the terms of CIF, the seller's responsibilities include the provision of the goods and commercial invoice in conformity with the contract of sale, the acquisition and cost of any and all export licenses and other official authorizations, as well as the contracts and costs of the carriage of goods and insurance coverage. The seller is also responsible for the delivery of goods aboard the ship at the port of destination and during the stipulated timeframe, as well as the risk of lost or damaged goods up until the point of delivery, and the division of freight, customs and other associated costs. Further, the seller must give sufficient notice of delivery to the buyer, provide the buyer proof of delivery, cover checking, packaging and marking costs, and fulfill any other stipulated obligations.

✳️ Meanwhile, the buyer is responsible for the payment of the price agreed upon in the contract, the acquisition of necessary licenses and other authorizations, the reception of goods at the point of delivery and the transfer of risk at that juncture, assuming responsibility at that point for any and all losses or damages of the goods. The buyer is further responsible for the division of costs relating to the goods including duties, taxes, customs and other official charges, as well as for payment of the pre-shipment inspection of goods. The buyer must give notice for timing of delivery to the seller, provide proof of delivery and fulfill and other necessary obligations, including providing the seller with the necessary information for procuring insurance. The buyer has no contractual obligations for the carriage of goods.


◀️ آموزش جامع در مورد واردات کالا و خدمات در کانال "مدیریت و تامین"

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