Are FOB prices tax free and what does FOB quote mean?

Under FOB conditions, the seller bears the risks and costs, obtains an export license or other official documents, and is responsible for the export formalities.

Allocation of Costs The seller must pay all costs in connection with the goods until the goods cross the ship's side at the named port of shipment; and Customs fees for the export of goods and all duties, taxes and other charges payable at the time of export when customs formalities are required.

The buyer must pay all costs relating to the goods from the time the goods cross the ship's side at the named port of shipment; and all additional costs incurred in the event that the vessel nominated by the Buyer does not arrive on time, or fails to receive the said goods, or stops loading earlier than the time notified by B7, or if the Buyer fails to give the seller the corresponding notice in accordance with the provisions of B7, to the extent that the goods are duly assigned to the contract, that is, clearly demarcated or otherwise identified as the goods under the contract; and All duties, taxes and other charges payable for the import of goods when customs formalities are required, as well as the costs of customs formalities and the transit of goods from other countries.

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No. The full text of FOB is Free On Board

named port of shipment), i.e. free on board (offshore**), customarily referred to as free on board at the port of shipment.

Whether or not to be exempt depends on the customs regulations of both sides.

FOB** does not include customs duties imported by foreign customers, so it is not FOB**.

FOB is: Offshore.

** meaning.

Offshore**, foreign name FOB (Free on Board).

Offshore**also known as Free on Board**. It is the seller who loads the goods on the carrier designated by the buyer at the port specified in the contract, and bears all the costs and risks until the goods are loaded on the carrier. In accordance with international practice, the division of the responsibilities of the buyer and the seller is as follows:

Seller's responsibility: Hu Bi is responsible for loading the goods on the carrier designated by the buyer at the port and date or within the time limit specified in the contract, sending a loading notice to the buyer, bearing all costs and risks before the goods are loaded on the carrier, and is responsible for handling export procedures and paying export taxes.

Provide visas for the exporting country** or related parties, and be responsible for providing the relevant shipping documents.

Buyer's responsibility: responsible for chartering and booking, paying freight, and notifying the seller of the name and schedule of the ship in a timely manner, and bearing all risks and costs after the goods are loaded on the carrier; Responsible for handling insurance, paying insurance premiums, accepting relevant shipping documents provided by the seller, and paying for the goods; Responsible for receiving the goods at the port of destination, going through import procedures, and paying import taxes.

FOB Advantages:

In general, it is more advantageous to use CIF or CFR terminology than FOB in the export business. Because, under CIF conditions, the three contracts involved in the international sale of goods (sales contract.

The contract of carriage and the insurance contract) are both parties to which the seller is the party, and he can make overall arrangements for the preparation, shipment, insurance and other matters according to the situation to ensure the mutual connection of the operation process.

In addition, it is conducive to the development of the country's shipping industry and insurance industry, and increases services**.

Revenue. Of course, this is not absolute, and according to the specific situation of the commodity traded, we should first consider whether it is difficult to arrange transportation by itself, and whether it is economically cost-effective.

The risk of FOB is also that if a freight forwarder is appointed.

If you can't book space directly, but book space through freight forwarders on other professional routes, then you don't have real control over the property rights in transportation, which leads to the problem of pants collapse in transportation, which cannot be solved in time.

The above content reference: Encyclopedia - Offshore**.

Free on board, free on board.

Free on board is also known as "fob". One of the most international terms. The seller completes delivery when the goods cross the ship's side at the named port of shipment.

This means that the buyer must bear all risk of loss of or damage to the goods from that point onwards. In addition, the seller must go through the formalities related to the export of the goods. This term applies only to sea or inland waterway transport.

Free carrier is one of the most important terms in the world. The seller only needs to deliver the goods to the carrier designated by the buyer at the designated place and complete the export customs clearance procedures. The choice of the place of delivery has an impact on the obligation to load and unload goods at that place.

If the place of delivery is the seller's place, the goods are deemed to have been fulfilled when they are loaded onto a means of transport provided by a carrier or another person appointed by the buyer on behalf of the buyer; Otherwise, the goods are deemed to have fulfilled their obligation to deliver the goods when they are placed in the care of a carrier or other person appointed by the buyer on the seller's means of transport and have not yet been discharged, and the seller shall not be responsible for unloading the goods. This term is limited to maritime and inland waterway transportation.

General Principles of International Terminology.

According to the 2010 International Principles of Terminology issued by the International Chamber of Commerce, FOB is only used for late shipments of goods by sea, which means "free on board". The term is always used in conjunction with mount ports.

Indicating "FOB Port" means that the seller pays the cost of transporting the goods to the port of shipment, plus the cost of loading. The buyer pays for sea freight, insurance, unloading, and shipping from the port of arrival to the final destination.

A transfer of risk occurs when the goods are loaded onto a ship at the port of shipment. For example, "fob vancouver" means that the seller will pay for the cost of transporting the goods to the port of Vancouver, as well as the cost of loading the goods onto the cargo ship (this includes inland transportation, customs clearance, certificate of origin fees, demurrage) (if any) handling charges at the port of origin, in this case Vancouver) and the buyer will pay all costs beyond that point, including unloading.

The seller is not responsible for the goods until they are loaded onto the ship. After the goods are on board, the buyer bears the risk.

The use of "fob" originated in the era of sailing ships. When the International Chamber of Commerce first wrote guidelines for the use of the term in 1936, the railroad on which the ship was pit Lee was still important because goods were usually passed by hand by rail.

The above content refers to Encyclopedia - Free on Board Price.

International ** terminology.

FOB (acronym for Freeonboard), also known as "FOB", is one of the terms commonly used in international markets. In the case of FOB transactions, the buyer is responsible for sending the ship to pick up the goods at the spring loss, and the seller shall load the goods on the vessel designated by the buyer within the port of shipment and the specified time limit specified in the contract, and notify the buyer in a timely manner. When the goods are loaded onto the designated vessel at the port of shipment, the risk passes from the seller to the buyer.

To put it simply, if you buy equipment from abroad, the seller only needs to send the equipment to the port of their country, and you will pay for the rest of the freight and insurance costs from abroad to China.

International terms (tradetermsofinternationaltrade), also known as terms. In the international **, the obligations of the buyer and the seller will affect the ** of the goods. In the long-term international practice, a model of directly linking certain conditions that are closely related to the world has gradually formed, and several models have been formed.

Each model stipulates the obligations of the buyer and seller under certain conditions. The terminology used to describe such an obligation is called a term.

The conditions indicated by the term are mainly divided into two aspects: first, the composition of the commodity is stated, whether it includes the main ancillary expenses other than the cost, that is, freight and insurance; Second, determine the terms of delivery, that is, explain the division of responsibilities, costs and risks borne by the buyer and seller in the handover of the goods.

Terminology is an essential element of international representation. The use of ** terminology clarifies the respective responsibilities, costs and risks that both parties should bear in the handover of goods, and explains the composition of the goods. As a result, the procedures for transaction negotiation are simplified and the closing time is shortened.

Because the international practice of stipulating the terms of ** provides a complete and accurate explanation of the obligations that the buyer and seller should undertake, it avoids some disputes that may arise in the performance of the contract due to inconsistent understanding of the terms of the contract.