Payment terms for an FOB product in China can be from 20%-50% initial deposit/down payment to begin manufacturing/assembly of the product. Once completed and ready for delivery the supplier will load the product into the container (FCL and LCL) and export it to be loaded onto the container ship at the port.

At this point the B/L (Bill of Lading) is exchanged for the remainder of the order value. Once this has been exchanged, the product is in the custody of the purchaser or the shipping agent/freight forwarder that has been enacted.

Depending on the agreement the buyer has with the shipping agent/freight forwarder the product can be managed all the way to the buyer’s door from that point onward.

Share this Page
Tweet about this on TwitterShare on FacebookShare on LinkedInShare on Google+Share on RedditDigg thisPin on PinterestEmail this to someonePrint this pageShare on TumblrShare on StumbleUponBuffer this pageShare on VKFlattr the authorShare on Yummly

Like this post?
Please share using the icons above

The Panda also loves feedback!
Comment below and type in what object you see in the image (so we know you're a real person)

Leave a Comment

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>