fob trade term-what does fob mean-fob trade term

Fob (free on board), refers to the delivery on board at the port of shipment, also known as 'offshore price', is one of the more commonly used terms in international trade. It is the buyer ’s responsibility to dispatch the ship to pick up the goods, and the seller should load the goods on the vessel specified by the buyer within the loading port and the time limit specified in the contract and notify the buyer in time. When the goods are loaded on the designated ship (over the ship's rail), the risk is transferred from the seller to the buyer (and freight and insurance fees are not included).

fob meaning

Fob (free on board), refers to the delivery on board at the port of shipment, also known as 'offshore price', is one of the more commonly used terms in international trade. It is the buyer ’s responsibility to dispatch the ship to pick up the goods, and the seller should load the goods on the vessel specified by the buyer within the loading port and the time limit specified in the contract and notify the buyer in time. When the goods are loaded on the designated ship (over the ship's rail), the risk is transferred from the seller to the buyer (and freight and insurance fees are not included).

Buyer and seller obligations

Seller's obligations

Responsible for delivering the goods conforming to the contract to the ship specified by the buyer at the designated port of shipment at the designated shipping port on the date or within the time limit specified in the contract, and giving the buyer a shipping notice within a reasonable time.

Responsible for obtaining export licenses or other approval certificates (such as commodity inspection certificates, certificates of origin, etc.), and going through export procedures for goods (such as customs declaration, export booking procedures, etc.)

Bear all the costs and risks (excluding freight and insurance) of the goods until they cross the ship's side (actually to the cabin) at the port of shipment

Responsible for providing commercial invoices and the usual documents certifying that the goods have been delivered to the ship (such as the shipping bill of lading)

Buyer Obligations

Obtain an import license or other officially approved documents at your own risk and expense. When you need to go through customs procedures, go through all customs procedures for importing goods and transiting through other countries, and pay related fees and transit fees

Responsible for charter or booking, pay the freight, and give the seller sufficient notice about the name of the ship, the place of shipment and the required delivery time;

Bear all the costs and risks of the goods after crossing the ship's rail at the port of shipment;

Accept the relevant documents provided by the seller, receive the goods, and pay for the goods according to the contract