Under the terms of FOB (short for “Free on Board”), the seller clears the goods for export and ensures they are delivered to and loaded onto the vessel for transport at the named port of departure. The buyer takes over risk and costs, including import clearance and duties, as soon as the goods are loaded onto the transport vessel at the port of departure. FOB only applies to ocean or inland waterway transport. As such, the named place is always a port. It does not apply if the main carriage is via air, ground or rail.

Seller pays all costs up to main carriage, then buyer takes over all cost responsibility.

Seller’s Obligations

• Goods, commercial invoice and documentation.
• Export packaging and marking / Export licenses and customs formalities.
• Pre-carriage to terminal / Delivery alongside vessel at port of shipment.
• Proof of delivery.
• Cost of pre-shipment inspection.

Buyer’s Obligations

• Pay the price of the goods as provided in the sales contract.
• Loading charges.
• Main carriage.
• Discharge and onward carriage.
• Import formalities and duties.
• Cost of pre-shipment inspection (for import clearance).