A company is sending a shipment to its customer in Italy. It elects to pay the freight and be responsible for any liability and damage claims. Which of the following free on board (FOB) terms is the company using?
A company is sending a shipment to its customer in Italy. It elects to pay the freight and be responsible for any liability and damage claims. Which of the following free on board (FOB) terms is the company using?
When a company elects to pay the freight and be responsible for any liability and damage claims until the goods reach the destination, the appropriate Free On Board (FOB) term is 'FOB destination, freight prepaid'. This means the seller pays the shipping costs in advance and retains risk and responsibility for the goods until they are delivered to the buyer's location.
FOB Destination, Freight Prepaid