FOB Price: Under the FOB contract, the seller quotes a price which includes all the expenses incurred until the goods are actually delivered on board the ship at the port of shipment. It constitutes
(a) Ex-Factory price
(b) Packing charges
(c) Inland transportation cost.
(d) Wharfage and Porterage.
(e) Customs and Port dues.
(f) Export duty, if any, etc.
FOB PRICE = Cost of goods + Expenses upto Board the ship + Profit – Export Incentives
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