Common Types of Sales

Sale F.O.B. Shipping Point

This means that the product quoted or sold is to be placed free on board the boat, truck, rail car, or other type of land transportation at shipping point, in “suitable shipping condition”, and that the buyer assumes all risk of damage and delay in transit not caused by the seller, irrespective of how the shipment is billed. The buyer shall have the right of inspection at destination before goods are paid for to determine if the product shipped complied with the terms of the contract or order at time of shipment, subject to the provisions covering suitable shipping conditions.

Delivered Sales, Shipping Point Basis

This means that the product is to be delivered by the seller on board the car, truck, or on the dock if delivered by boat, at the market in which the buyer is located, or at such other market as is agreed upon, free of any and all charges for transportation or protective service. The seller assumes all risks of loss or damage in transit not caused by the buyer.

Shipping F.O.B. Point (or Port) of Entry

Sales of imported produce on an F.O.B. shipping point basis, with the shipping point as the crossing point or port of import, with any duties, crossing charges, or import fees paid prior to the reported sale.

Prices Paid to Growers

Prices paid to growers by packers or shippers, indicating the unit of sale and point of sale, or basis of delivery most common in the territory. Examples: “Bulk per cwt: U.S. No. 1 at warehouse,” “per ton sacked and loaded,” or “per package, in field, buyer furnishing packages.”