Incoterms 2020 FOB Spotlight on Free On Board

>> YOUR LINK HERE: ___ http://youtube.com/watch?v=yhM4zmvwM94

There are 11 Incoterms 2020 rules. These globally-recognized trade terms, published by the International Chamber of Commerce, determine how costs and risks are split between buyers and sellers conducting international transactions, and when the risk or liability for the goods transfer from the seller to the buyer. This video takes a closer look at the Incoterms rule FOB, also known as Free On Board. • ************* • Incoterms Chart of Responsibilities and Transfer of Risk: https://www.shippingsolutions.com/inc... • An Introduction to Incoterms eBook: https://www.shippingsolutions.com/int... • Find 100s of articles about various aspects of exporting on Passages: The International Trade Blog: • https://www.shippingsolutions.com/blog • ************** • Free On Board Responsibilities and Risk • Under FOB, the seller has fulfilled its obligation when the goods are loaded on the vessel nominated by the buyer at the named port of shipment. With FOB, the seller is responsible for loading the goods on the transport. The buyer is responsible for everything else necessary to get the goods to the final destination. • The risk or liability for the goods transfers from the seller to the buyer when the goods are on board the vessel, and the buyer bears costs from that point forward. • FOB should only be used for sea and inland waterway transport. • Using Free On Board • Since most goods are now delivered to container yards rather than right to a particular vessel, FOB is usually only used in a few instances with containers at smaller ports. • Under past versions of Incoterms, loading typically was fulfilled when goods crossed a ship's rail. Now, loading means when goods are loaded onboard the vessel. For container transport that means when the cables go slack and are no longer holding the container. • The buyer and seller should agree on exactly what “loaded on board” means in the sales contract, because it can vary for different types of vessels and commodities. • Incoterms 2020 vs. Uniform Commercial Code • Companies in the United States that are new to exporting and importing often get tripped up using Incoterms for international transactions. They may be used to using domestic terms of sale that include some variation of FOB, like FOB Origin or FOB Destination. Those terms are derived partially from the Uniform Commercial Code. • When it comes to international trade, companies using best practices will switch to Incoterms 2020 rules, in which case it's not common, and frequently not appropriate, to use FOB for international shipments. • *************** • Chapters • 00:00 Introduction • 00:49 FOB Responsibilities and Risk • 01:26 Using FOB • 02:05 Incoterms 2020 vs. Uniform Commercial Code • 02:44 Incoterms Chart of Responsibilities • ************** • #exportdocumentationsoftware #exportdocuments #usexportinghelp #incoterms2020 #incoterms #FOB #FreeOnBoard #Incoterms2024 • *************** • Make sure you subscribe to this channel for more practical advice for exporters and importers. • / @shippingsolutions • *************** • Incoterms® and the Incoterms® 2020 logo are trademarks of ICC. Use of these trademarks does not imply association with, approval of or sponsorship by ICC unless specifically stated above. The Incoterms® Rules are protected by copyright owned by ICC.

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