Free on Board

FOB Transport costs Custom Formalities

The seller must load the goods on board the ship designated by the buyer. Costs and risks are divided when the goods are actually on board the ship (when using ICC IncotermsĀ® 2020 this is when passing the ship's railing). FOB is a maritime condition. FOB may be less suitable if the goods are already transferred to the carrier before they are on board the ship, such as goods in containers, which are already delivered to the terminal. In such cases, it may be advisable to use FCA.

Delivery
The seller must deliver the goods placed on board the ship mentioned by the buyer in the agreed shipping port.

Transport risk
The risk of damage during transport is at the buyer's expense from delivery. Before delivery, the seller bears this risk.

Transport costs
The cost of transport is borne by the buyer from delivery.

Customs formalities
The seller must provide all customs formalities resulting from the export. His account is also the costs, duties and charges resulting from this. Customs formalities, costs, duties and charges shall be borne by the purchaser on importation into the country of destination.

Transport insurance
SN of both parties is obliged to take out insurance for the goods.

Addition place of delivery
The delivery condition should always be added where the transfer of the goods takes place. At FOB, this is indicated with: ... named port of shipment (...Ā agreed shipment port).