Free on Board

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The following article is from The Great Soviet Encyclopedia (1979). It might be outdated or ideologically biased.

Free on Board

 

(f.o.b.), a commercial expression used to describe certain sales of goods that are shipped by sea. When goods are sold on an f.o.b. basis, the seller is responsible for transporting the goods to the port and loading them on board ship; the expenses incurred are included in the selling price. In certain ports, however, the buyer pays the loading expenses even when the goods are purchased f.o.b. Responsibility for damage and spoilage is borne by the seller until the goods are on board ship, after which it passes to the buyer. Under the General Conditions of the Council for Mutual Economic Assistance, both ownership and responsibility for damage and spoilage pass from the seller to the buyer simultaneously.

The Great Soviet Encyclopedia, 3rd Edition (1970-1979). © 2010 The Gale Group, Inc. All rights reserved.