4) FOB : free on board...named port of shipment

  • Use: maritime transportation
  • Type of sale: Sale at departure

Only mode of maritime transportation

Transport by sea
DOCUMENTS
RISKS
EXPENSES
Assumed by the seller

Main obligations of the parts

  • The SELLER have:
    • To take in charge the clearance export, if it is necessary.
    • To deliver the goods on board of the ship according to the use of the port.
    • To pay for the expenses of loading.
  • The BUYER have:
    • To choose the carrier, to conclude the contract transportation and to pay for freight.
    • To support all expenses and risks from the moment where the goods passed the bulwark of the ship in the port of embarking.
    • To achieve the clearance import.

Other important points

  • Documents demanded of the seller:
    • commercial invoice or equivalent computer data; received [net on board]
  • Delicate point:
    • The FOB can have a different significance in some countries. The prudence imposes itself in case of transaction with an American operator. To the United States, there is not a FOB but of the FOB descended of the Foreign Trade Definitions or the Commercial Uniform Codes, the FOB American the more close to the FOB according to ICC being the (FOB Vessel) ;
    • The delay of the ship that imposes the handling costs and storage. According to the terms of this incoterm, it is the purchaser who will support these expenses.
  • Vary FOB Stowed . The salesperson takes in charge the totality of the expenses supported by commodity in the port of embarking.
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