The sun., 1919-09-24
MISUSES OF FOB.
CUT FOREIGN TRADE
National Council Points Out
Proper Practice and Urges
Compliance.
PROTEST. BY AUSTRALIA
Term Means Gree on Board
|, Overseas Vessel" Is Con-
tention Made.
PROTEST BY AUSTRALIA

In a letter addressed to all foreign
traders In the country who have at
tended any OF the foreign trade con-
ventons, the National Foreign Trade
Council calls the attention of Ameri-
can manufacturers and merchants to
existing abuses of the term "f o. b.
port" explains the correct interpre-
tation of the term according to the best
practice at home and abroad, and urges
that this Interpretation be observed.
II some merchants insist on using this
term in Seize other than that dictated
by the best usage, the council emphat-
lcally recommends they make their
meaning absolutely explicit and be-
yond the possibility OF misunderstand-
ing. Otherwise 1t is feared that the
confusion resulting from the misuse of
this term will react seriously to the
detriment of American overseas trade.
The communication reads In part:
Correspondence from Australia has
reached the National Foreign Trade
Council complaining that American
manufacturers and exporters who have
quoted prices T. o. b. New York
have interpreted that quotation to mean
merely delivery within the limits of the
port of New York, and not necessarily
actual delivery of the merchandise on
board the overseas vessel The Aus
tralian contention Is that the term f.
o. b. port has only one meaning,
namely, Free on board overseas ves-
sell, and that q quotation 4. O. b.
port means that the purchaser has no
charges to meet except those Of ocean
freight and insurance.
1T appears that some American man
ufacturers and exporters who have
quoted prices 4. o. b. New York or
other port have contented themselves
with the delivery of the goods within
the limits of the port named, instead
| OF delivering them on board the over
| seas vessels, with the result that charges
| for carriage, Hghterage, storage and other
| items have been passed on to the Aus
| tralian purchaser who had understood
that the f. o. b. port quotation COW
cred delivery Of the goods on board the
overseas vessel. The possibility of ad-
verne Effect upon American foreign trade
| in l. situation is obvious, and leads
the National Foreign Trade Council to
, urge upon American exporters generally
the wisdom of following invariably a
practice under which such complaints
cannot possibly arise.
There Is no question that the origi-
nal meaning OF f. o. b. port was free
on board ship and that that is the
| general and usual Interpretation of II
among foreigners. The National For
eign Trade Council desires to point out
that II is essential to the best practict
for American exporters and manufac-
turers in making an (. o. b. port quo
tation, to have 1t mean 4. o. b. overseas
vessel but in any event the quotation
iUhdteuer It Is, should be unmtstdkdbII
clear aud explicit. If in quoting prices
| f. o. b. port American manufacturers
or exporters have in mind any Other
delivery than on board overseas vessel
they should make perfectly clear exactl,
what they have in mind, namely, that
/ carriage. storage, or other services are
for buyers account.
ANY form OF quotation that is sus
ceptible of double Interpretation lend:
itself to the possibility OF abuse detri
mental to American trade as a whole
end the National Foreign Trade Council
urges upon American exporters anc
manufacturers that they adopt the un
varying practice OF making their quota
lions 30 explicit as to preclude the pos
sibility of misunderstanding"