[Smertrios]

I have been looking at the costs involved with importing from china and even recieved a quote on some small mills. They look like work horses and the quoted price is right cept I don't completely understand how it would work. For example lets say the quote was $600 per mill 5 minimum FOBUSD$ <- what exactly does FOBUSD mean? I am assuming that it to the docks or "point of entry" but what other costs get added into the $600 price tag before it arrives at my door?

Has to go from point A (chine factory) to point B (my garage) but on the way I find out it also has to go through points C, D, E, F, G, H and I with each point charging upto $150 a pop? There has to be a better way because either the quoted price is very high *or* there are $ short cuts *or* the resellers here buy in extremely high quantities (which I dont believe) *or* ???.

C = Ocean Freight
D = Import BrokerFee
E = CustomsBond
F = Customs Duty
G = Freight Forwarder Document Fees
H = Freight Terminal transport and loading fee
I = Arrangement for Pickup and shipping to my garage

$600 a mill sounds great until it turns into $1000

[NC Cams]

F=freight
O=on
B=board

USD= U.S. DOllar.

Means: you pay the frieght from their door to yours PLUS tariffs, taxes,surcharges,bribes, broker fees, whatever it takes.

Usually means you provide a LOC (letter of credit) usually non refundable, meaning they get their money for the box (no matter what's in it) before it leaves their dock.

You better know what you're doing when you get invovled with international trade.

Better way: go to a store,look at what's there, buy it after you see it run.

Next best, Call Grizzly or some other place of the sort that has close to what you want. They already have the connections and the service parts need and you WILL need parts sooner or later.

Lots of stuff looks good when you see the brocure but turns into a nighmare when you finally get it home and/or go thru the broker maze.

[Al_The_Man]

If you contact a licensed Freight Forwarder, they should be able to tell you what charges are involved and the approximate cost as they generally handle all the formalities of International trade shipping, They also look after the importation and brokerage etc.
In Canada, if you are lucky enough to have a Freight company or customs that have a bonded wharehouse in your city, you can clear the customs yourself.
All the forms and Classification codes are on the Govt. website.
From experience, it would not really pay for 1 off items from places like China, but if you get a container full, it may well be.
Al.

[ViperTX]

I believe FOB means that's the cost up to the point that it's loaded and on it's way to you....from then on, it's your responsibility.

[widgitmaster]

According to Google's define:FOB

Free On Board, a bid, offer or quoted market which does not include the cost of delivery. Usually associated with a particular region or plant.

[ViperTX]

WidgitMaster...yep, that's my understanding also.

[WhiteTiger]

NC Cams had it right. It's Freight On Board, meaning the goods sitting on a pallet on the loading dock, ready to be billed and routed.

Sometimes it gets pretty funny watching online defs mangle clearcut, unambiguous old terminology


Tiger

[Geof]

From Answers.com

Legal Encyclopedia

F.O.B.

An abbreviation for free on board, which means that a vendor or consignor will deliver goods on a railroad car, truck, vessel, or other conveyance without any expense to the purchaser or consignee.

If you are going to provide a definition provide the correct one.

[Al_The_Man]

Actually I believe the legal term is the point where the goods are transfered over to the responsibility from seller to buyer. They become Free (of title to the goods).
If the goods are sold FOB shipping point, then they become the property of the buyer at the time of shipping and he is responsible for shipping cost.
If the item is shipped FOB destination, then the seller owns the goods up to delivery and he is responsible for shipping cost.
It has generally come to be used as FOB Mytown, this implies that it is shipped FOB shipping point.
I rest my case
Al.

[ZipSnipe]

Well according to Grizzly's definition of F.O.B., they( being Grizzly) will load on YOUR TRUCK. So I take it you would have to provide for the pick up from China and that they will load from thier dock onto your truck. But then again that might be the American definition, you probably need to see what the Chinese definition means....

[WhiteTiger]

If you are going to provide a definition provide the correct one.

Which leaves open the question of whose "correct one".

Personally, I'll stick with freight on board, which is what all the dock and warehouse workers I've known have used.

Free on board as defined gets pretty senseless when you see goods priced and listed as FOB point of shipping origin.


Tiger

[Al_The_Man]

Free on board as defined gets pretty senseless when you see goods priced and listed as FOB point of shipping origin.


Tiger

What it means if shipped FOB Point of origin is the shipper is free of the title and the ownership is passed to the Buyer.
Do a check with the freight companies and most use Free on Board.
A couple of examples, If I sell a machine on ebay and specify FOB My Shop Floor, and a Guy in Texas wins the bid, once I have the money it is his, it is up to him how he gets it out.
I am FREE of the title of ownership, if there is a fire or flood or it falls off the truck it is his loss.
2/ If I sell new lathes and at IMTS I advirtise show special, FOB your dock anywhere in N.America, then I have owner ship of the title until you sign for it, if it falls off the truck going into your plant, I have to replace it and I pay the freight.
Al.

[Geof]

....Free on board as defined gets pretty senseless....Tiger

I actually looked up several legal definitons of FOB and posted the shortest. You may not like a definition but when you are dealing with the legal ownership status of something that might have a value running into six figures it could be more sensible to use the definition lawyer's use.