Question 20
Foreign Trade DocumentsWhen a price is quoted at F.O.B., it means that the price
- A.excludes loading charges incurred in bringing the goods to the dock
- B.excludes all necessary shipping charges payable for insurance
- C.includes all charges payable on shipping a consignment to the port of destination
- D.includes charges payable for loading goods onto the ship.
Show the answer and explanation
Answer: D (includes charges payable for loading goods onto the ship.)
Explanation
Free on board means the seller pays all costs until the goods are loaded on the ship; freight and insurance after that are the buyer's.