1. whati is FOB ?
2. One of the exporter has quoted the FOB price to us. now want to know whether this price is inclusive of taxes(Custom duty, additional duty,VAT,etc) or is it without inclusive. ?
FOB means Free On Board. This is only a cost Amount . If the value included Insurance & frieght then it will be CIF (Cost Insurance Frieght) and for Cost and Freight the term used is CFR.
For more details please go through with https://www.caclubindia.com/forum/know-international-commercial-terms-used-in-export-import-39662.asp
>> Rajesh
RAMESH KUMAR VERMA
( CS PURSUING )
(43853 Points)
Replied 04 February 2010
mr. dilip,
FOB = COST OF GOODS SOLD IN INDIAN RUPEES .
CIF= COST OF GOODS SOLD WITH INSURANCE AND FREIGHT
SUPPOSE,
IF YOU SOLD THE GOODS IN USA OF 4000.00 USD
AND 1 USD RATE IS RS. 45.00
YOUR FOB IN INDIAN RS. IS:- 4000*45 = RS. 1,80,000.00
AND IF FREIGHT IS 400 .00USD
AND INSURANCE IS 600.00 USD
NOW, YOUR FOB IN USD =4000(-)1000= 3000.00 IN USD
AND IN INR FOB WILL :- 3000*45= RS. 1,35,000.00
AND ACCORDING EXPERT YOU GO TO PATH:-
https://www.caclubindia.com/forum/know-international-commercial-terms-used-in-export-import-39662.asp
RAMESH KUMAR VERMA
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
