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Victor log, post: 204075 wrote:

FOB price doesn’t cover your shipping cost unless you have an special agreement with supplier there. You will need to arrange moving products from Indonesia to Melbourne. A freight forwarder can arrange clearance, delivery for you. If your supplier can provide correct FTA form, your products might be duty free but you have to pay import GST which is 10% of CIF price. Bear in mind, some products do need imports permit.




Awesome reply… Please note that FOB traditionally means FREIGHT ON BOARD.. Not covering the cost to Melbourne, be cautious and clarify EVERYTHING!

When buying from China, for example, the suppliers sometimes have an arrangement with local China based freight companies and they say ” we will provide FOB to Melbourne” although what they are really saying is “we will arrange through our mates to have it shipped to you in Melbourne and cover it to Melbourne and when it arrives in Melbourne YOU MUST USE our freight forwarders to receive the goods”.. Which in turn means, we are not paying the FOB and our mates who arranged the freight will change you like a wounded bull to receive your goods that you have agreed to pay for unconditionally. Then we will get a rebate or kick back from our mates as a bonus :)

Be careful, not saying this is what was done to you but just be very very aware of what it is you are agreeing to.. Normally, i would arrange ALL FREIGHT through my own agent and they will coordinate the collection of goods from manufacturer and have it loaded on boat and then i arrange with same freight forwarder to my door… That way i control the costs.. Furthermore, the supplier has to reimburse my freight forwarders international (china sides) costs to get the container to the boat as FOB was discussed :)

Wishing you all the best.. let us know how you go.


Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888