​Distinguish between the following terms of sales as used in international trade

​Distinguish between the following terms of sales as used in international trade. (4 mks)

(i) Free on rail (FOR)

​Price quoted includes expenses for transporting the goods up to the nearest railway station. The buyer meets railway charges and all other expenses.

​(ii) Free on board (FOB)

​Price quoted includes the movement of goods up to when they are in the ship. The buyer meets all the other expenses.

​(iii) In bond

​Price quoted includes all the expenses up to handling the goods into the exporters bonded warehouse. The buyer / importer meets all other charges such as duty and storage.

​(iv) On nearest offer (ONO)

The exporter is willing to accept the quoted price or any other nearest to the quoted one.

Read More