What does FOB mean? What about FAS? What is CIF? and C&F? | Law Offices of David L. Leon, PC | Law Offices of David L. Leon, PC What does FOB mean? What about FAS? What is CIF? and C&F? | Law Offices of David L. Leon, PC
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What does FOB mean? What about FAS? What is CIF? and C&F?

International contracts typically contain shorthand terms (Incoterms) describing when the risk of loss transfers from a seller to a buyer. The most commonly used Incoterms are listed below:

FOB stands for “free on board”. Its use would be “FOB ” where would be the city or place where the goods would be left. This term is typically used in sales contract, and designates a location for the delivery of goods. For example, FOB Dallas means that the seller would provide the goods at the seller’s expense to Dallas. The buyer is responsible for transport of the goods beyond Dallas.

FAS stands for “free along side”. Typical usage would be FAS (Port or Vessel). This means that the seller is responsible for delivering goods to a specific port or vessel. The buyer would then assume the risk of loss once the goods were delivered to the side of the vessel. Once the loading process begins, the risk of loss shifts to the buyer.

CIF stands for “cost insured freight”. This means that the seller will bear the cost of shipping and insurance up to the designation. Common usage would be “CIF Buyer’s address”

C&F means “cost and freight” which means the seller pays for shipping, but not insurance. The buyer would be responsible for all insurance.

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6 Responses to What does FOB mean? What about FAS? What is CIF? and C&F?

  1. Mayank says:

    Thanks for providing me information.

  2. FOB > In this term, suppose we have to purchase the material from Dubai and seller has given the price $300 FOB price. After contract between buyer and seller, buyer will be responsible for good at their final destination on sellers expenses. Am i right or not??

    I mean, if buyer has to deleiver the material to India, then seller of Dubai will pay the all transport expenses or not. Please reply against it.

    FAS > This term stands for “Free along Side” which means if seller gives the FAS price to us and deliever the goods at our port destination, the time from the process start to delievery of material to port, the risk will be of Buyer, if any inconvinence observes druing that period, then buyer will pay the loss for that. Is that right or not?
    I think in this term prices will be less. What you say?

    In last > for all these terms, prices will be same or not according to the port destination.

    Please give the reply point wise from top to bottom.

    Thank You

    Regards
    Gaurav Kaushal
    Mob: +91-9855579382

  3. Is there any guidance available in your website regarding IMPORT EXPORT BUISNESS. Please tell me, if any one have.

  4. Dr Vencat says:

    So, does

    US$ 5000 CIF FOB and
    US$ 5000 C&F and
    US$ 5000 CIF xyz are not the SAME?

    • admin says:

      No.

      Let me give an example:

      FOB: Galveston means that the seller will pay for the goods to be delivered to a shipyard in Galveston, and placed on a vessel.
      CIF: Dallas means that the seller will pay for the goods to be shipped to Dallas, and the seller will pay for cost, insurance & freight.
      CF: Seller pays costs and freight, but not insurance.

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