FOB(Free On Board), also known as "free on board", is one of the commonly used trade terms in international trade. For trading on FOB basis, the buyer is responsible for sending a ship to pick up the goods, and the seller shall load the goods on the ship designated by the buyer at the port of shipment stipulated in the contract and within the specified time limit, and notify the buyer in time. When the goods are loaded on the named ship at the port of shipment, the risk is transferred from the seller to the buyer.

the buyer shall be responsible for chartering and booking the shipping space, paying the freight, and notifying the seller of the shipping date and name in time. After the goods have crossed the ship's rail at the port of shipment, other responsibilities and expenses shall also be borne by the buyer, including obtaining import licenses or other official documents, and handling the entry formalities and expenses of the goods.

Extended information

The basic obligations of the buyer and the seller are divided according to the interpretation of FOB by the International Chamber of Commerce. To sum up, it can be divided as follows:

Seller's obligations

1. Deliver the goods to the ship designated by the buyer in the customary way at the port of shipment within the time or period stipulated in the contract, and notify the buyer in time.

2. Obtain an export license or other official approval documents at your own risk and expense. When it is necessary to go through customs formalities, go through all customs formalities required for the export of goods.

3. bear all expenses and risks until the goods cross the ship's rail at the port of shipment;

4. provide the usual documents to prove that the goods have been delivered to the ship at your own expense. If the buyer and seller agree to use electronic communication, all documents can be replaced by EDI information with the same effect.

Buyer's obligations

1. Obtain an import license or other officially approved documents at its own risk and expense. When necessary, go through all customs formalities for the import of goods and transit through other countries, and pay relevant fees and transit fees;

2. Be responsible for chartering or booking shipping space, paying freight, and giving the seller sufficient notice about the name of the ship, the loading place and the required delivery time;

3. bear all expenses and risks after the goods cross the ship's rail at the port of shipment;

4. accept the relevant documents provided by the seller, accept the goods and pay the payment according to the contract.

Baidu Encyclopedia -FOB price at the port of shipment

Baidu Encyclopedia-FOB