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Speaking of accounting and concepts related Export Import business; even if you have a bookkeeper or accountant who will take good care of your books, there are some issues and concepts that you should know. Before you start talking about terms, I want to tell you a story mt. When my husband and I just started this company, we had no experience in this field at all. We even do not have any experience in running any kind of business, so all the financial and non-financial terms were new to us. When we first went to talk to custom server I thought he was speaking in several different languages with us. Even the word freight sounded very strange to me, “Why would not you call that ships ??” I though. So, I know the pain when it comes to business slang
FOB destination
FOB destination -. Title of goods passes from the seller to the buyer destination. It means that the seller is responsible for loss or damage to goods shipment is delivered to the buyer. For example, you bought a car from Germany in terms FOB destination. In this case, if something happens to the car while it is being performed, you have no responsibility for, and you do not have to pay for any damage or loss of the car. You even do not need to buy a car when it comes, if it is not in satisfactory condition. All charges are handled by the vendor
Freight out :.
Freight out (Transportation out ) – terms to take up transport or delivery costs, the seller is responsible for the delivery (FOB destination). (Seller signing transportation costs Freight-Out, Transport Out or Delivery cost.)
FOB shipping point
FOB shipping point (FOB origin) – title goods passes from the seller to the buyer of ships doc seller. Which meant that the buyer is required to pay for delivery. Basically, if you bought a car with FOB shipping point or FOB origin terms, you are the one who is responsible for the delivery and damage or loss of the car. If the car is in poor condition due to an accident that occurred while the car was moved, you can not ask for money back.
- Destination Freight Prepaid – the seller pays and takes all freight charges and. (Almost the same as FOB destination)
- Destination freight prepaid and charged Back – Seller pays freight charges, but charges them back on the buyers account. (For example, when you buy something from Amazon.com, they are usually the price of the consignment in the lobby. It means that they pay for the shipment, but they charge you again for that.)
- Destination freight collect – The buyer pays and takes all freight charges. (However, the buyer pays all the costs, just when the car arrives at the destination.)
- Destination Freight Collect and Allowed – the buyer pays the freight charges, the seller takes fees into account. (For example, you bought a car which cost you $ 5,000 you paid for sending $ 1,000 Total: $ 6,000 .. When a car comes and you get a bill from the company that sold you the car, you see that they charge you just $ 4,000, because they make payments of $ 1000 for a cross)
Freight in :.
Freight in (Transportation in) – (. The buyer will take this costs Freight or Transportation-In) terms to file transportation or delivery cost when the buyer is responsible for delivery (FOB shipping point, FOB origin)
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