<P> Import fees when they reach the border of one country to enter the other country under the conditions of FOB destination are due at the customs port of the destination country . </P> <P> With the advent of e-commerce, most commercial electronic transactions occur under the terms of "FOB shipping point" or "FCA shipping point". </P> <P> Some sources claim that FOB stands for "Freight On Board". This is not the case . The term "Freight On Board" is not mentioned in any version of Incoterms, and is not defined by the Uniform Commercial Code in the USA . Further to that, it has been found in the US court system that "Freight On Board" is not a recognized industry term . Use of the term "Freight On Board" in contracts is therefore very likely to cause confusion . </P>

Who pays the freight costs when the terms are fob shipping point