US · guidance
BOP Program Statement 8531.14 § 5
FOB DESTINATION
This method recognizes revenue when the merchandise is delivered to the customer or
designated location (i.e., dock), unless the contract provides otherwise. The price is fixed, but
dependent upon delivery.
a. Pricing. The pricing for FOB Destination represents the FOB Origin price plus freight. See
the Program Statement Pricing Procedures, FPI.
b. Delivery. The seller is responsible for the cost of shipping and risk of loss. In addition, the
title of the goods does not pass to the buyer until they are received by the buyer or arrive at the
destination (received at an installer’s warehouse does not constitute “received” in most cases).
c. System Accountability. The pricing structure within the financial information system allows
factoring freight charges for FOB Destination. This is done by combining the FOB Destination
cost plus freight charges. In addition, the system-generated bill does not list the sale price and
freight charges as separate line items.
History
PS 8531.14 dated 2015-03-20
Provenance
- Source
- bop.gov
- Retrieved
- 2026-09-20
- Edition
- bop-ps-2026-09-20
- Content hash
99bfa061f1cdad5c78225ff43a3ad185be536a4077cd92d7b6cc850f42e5aea0
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