Mr. Liu: As you know, Mr. Smith. Since this transaction is concluded under FOB terms, you as the buyer are to charter a ship or book the shipping space.

Mr. Smith: That’s understood.

Mr. Liu: You should also inform us of your ship’s name and its sailing date by fax or e-mail 15 days before the date of loading.

Mr. Smith: Certainly we’ll do that. Now could you tell me your responsibility?

Mr. Liu: We’ll deliver the goods on board and there our responsibility ends.

Mr. Smith: As far as I understand, you are to bear all the charges up to the time the goods are on board, such as customs duties and any other service charges on the exported goods.

Mr. Liu: Exactly.

Mr. Smith: You should also inform us of the loading port 30 days before shipment and the estimated date when the goods will reach the port of loading.

Mr. Liu: We certainly will.