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What Is FOB?

Free on board (FOB). This pricing term indicates that the cost of the goods, including all transportation and insurance costs from the manufacturer to the port of departure, as well as the costs of loading the vessel are read filed in the quoted price. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export.

"Cost, insurance and freight" means that the seller delivers when the goods pass the ship's rail in the port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination but the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer. However, in CIF the seller also has to procure marine insurance against the buyer's risk of loss of or damage to the goods during the carriage. "CIF Price Includes the Vehicle Price + Shipping freight + Insurance Cost".

Free on board (FOB). This pricing term indicates that the cost of the goods, including all transportation and insurance costs from the manufacturer to the port of departure, as well as the costs of loading the vessel are read filed in the quoted price. "Cost and Freight" - commercial term meaning that the stated value of a shipment of goods includes all costs and freight involved in shipping the goods to their destination. C & F Price Includes the Vehicle Price + Shipping freight to the port of your country.

Consignee is Receiver on BL. Responsible to pick up the carriage after unloaded.

B/L - Bill of Lading Official Legal document signed by the captain, agents, or owners of a vessel, furnishing written evidence of the quality and quantity of cargo for the conveyance and delivery of merchandise sent by sea to a specific destination. It represents ownership of cargo between shipper and carrier.

When goods are sent to the consignee, usually a statement showing the value of the goods is sent to the agent is known as proforma invoice. The agent is not liable to pay the amount stated in the statement since he has not purchased the goods. The statement is meant only for his information. It is drawn up in the form of an invoice, therefore, it is called proforma invoice, i.e. invoice for the sake of forma. The agent consignor as advance this may be done by cheque or by accepting a bill of exchange drawn by the consignor. Thus, a proforma invoice includes information about actual cost and expenses incurred by the consignor. It is inflated so that the consignee may not know the actual cost of goods. Hence in proforma invoices is included some percentage of profit.

Auto auctions are the most popular method to sell used vehicles in Japan. Most customers are Japanese seeking a cheap vehicle to start with or replace their older vehicle. There are many also trying to sell their vehicles. Individuals though cannot directly use auto auctions, but must go through those holding auction membership. In Japanese law, only dealerships may become members to auto auctions. The way the system is set up allows people to have access to information, but keep the auctions orderly with only professionals actually able to bid.

A small percentage of the dealers that are members of Japanese auto auctions are also used vehicle exporters that most often use the auto auctions as their primary source of used vehicles. Other than these exporters, most members are used vehicle dealership that sell in Japan and are used by Japanese people to find a car they want.