Figure 2. Spot export prices of HR sheet (fob Europe, US tonne)

Domestic and export (fob) prices for HR (hotrolled) sheets, US tonne, 1974 1999

A bad' year is when world steel export prices, FOB the foreign port, sell at less than 75 per cent of the US price.

A good' year is a period when world steel export prices, FOB the foreign port, are selling at about 80 per cent of the US price.

The problem is viewed as a practical one and it is noted that the relation between the FOB seller and the carrier is not very clear.

However, a majority of the delegations have expressed a preference for including a regulation on the liability of the FOB seller, who very often will be the actual shipper.

The Ministry of Commerce and Industry states that an importer has to pay taxes of 35.81 per ton based on applicable rates of custom duty and goods and services tax at the FOB cost of 249 per ton.

The reasons for this are that the chapter should only regulate the liability between the carrier and the shipper and that the question of the position of the free on board , or FOB seller does not belong in a convention on carriage of goods, but rather in a convention on sale of goods.