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| Effect of Freight Terms on a Transaction |
Policy No.: |
P-050 |
| Supercedes No.: |
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| Effective Date: July 1, 2002 |
Page No.: |
1 of 1 |
I. PURPOSE
To show the effect of freight terms on a transaction.
II. SCOPE
Town personnel authorized to enter into purchase agreements must know the effect of freight terms on a transaction.
III. GENERAL
FOB Origin, Freight Collect |
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Title passes at origin.
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BUYER |
Pays freight charges |
BUYER |
Bears freight charges |
BUYER |
Owns goods in transit |
BUYER |
Files claims, if any |
|
|
|
FOB Origin, Freight Prepaid |
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|
Title passes at origin
|
SELLER |
Pays freight charges |
SELLER |
Bears freight charges |
BUYER |
Owns goods in transit |
BUYER |
Files claims, if any |
|
|
|
FOB Origin, Freight Prepaid and Charged Back |
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Title passes at origin Seller collects charges from buyer adding freight amount to invoice. |
SELLER |
Pays freight charges |
BUYER |
Bears freight charges |
BUYER |
Owns goods in transit |
BUYER |
Files claims, if any |
|
|
|
FOB Destination, Freight Collect |
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|
Title passes at destination
|
BUYER |
Pays freight charges |
BUYER |
Bears freight charges |
SELLER |
Owns goods in transit |
SELLER |
Files claims, if any |
|
|
|
FOB Destination, Freight Prepaid |
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(PREFERRED METHOD) |
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Title passes at destination
|
SELLER |
Pays freight charges |
SELLER |
Bears freight charges |
SELLER |
Owns goods in transit |
SELLER |
Files claims, if any |
|
|
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FOB Destination, Freight Collect and Allowed |
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Title passes at destination.
Freight charges paid by buyer and then charged to seller by invoice deduction. |
BUYER |
Pays freight charges |
SELLER |
Bears freight charges |
SELLER |
Owns goods in transit |
SELLER |
Files claims, if any |
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The
Town of Collierville does not discriminate on the basis
of race, color, national origin, age, sex, or disability in
its hiring
and employment practices, or in admission to, access to,
or operation of its programs, services, and activities pursuant
to Title VI
of the Civil Rights Act of 1964 (42 U.S.C. 200d) and the
Americans with Disabilities Act of 1990, Pub. L 101-336.
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