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free on board (FOB) definition

adj. referring to purchased goods shipped without transportation charge to a specific place. Free on board at the place of manufacture shows there is a charge for delivery. Example if an automaker in Detroit sells a car "FOB Detroit," then there will be a shipping charge if delivery is taken anywhere else. If the contract reads "FOB New Orleans," then the auto will be shipped to that city without charge, but with charge for delivery from New Orleans to somewhere else.

See also FOB

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