Glossary
: Shipping
Terms : FOB DESTINATION
Title of the goods passes at destination,
and seller has total responsibility until shipment is
delivered. Ownership (title and control) remains with
seller until goods are delivered. It is expected that
the supplier will make all of the transportation arrangements.
This policy recognizes that the supplier may be in a
position to handle transportation more economically
than the customer or that the customer does not posses
the desire or expertise to make such arrangements. The
Seller files claims (if any).
• If the terms agreed on are FOB Origin or Destination
Freight Prepaid – The seller pays and bears
the freight charges
• If the terms agreed on are FOB Origin or Destination
Freight Prepaid and Charged Back – The seller
pays the freight charges but charges them back to the
buyer in the invoice.
• If the terms agreed on are FOB Origin or Destination
Freight Collect – The buyer pays and bears
the freight charges.
• If the terms agreed on are FOB Origin or Destination
Freight Collect and Allowed – The buyer pays
the freight charges, but the seller bears the charges
in the invoice.
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