PL: FOB (Free on Board) | DE: FOB (Free on Board)
Definition
FOB (Free on Board) is one of the most commonly used Incoterms rules in maritime trade. Under FOB, the seller is obliged to deliver goods on board the vessel nominated by the buyer at the agreed port of shipment. At the moment of loading onto the vessel, the risk of loss or damage transfers from the seller to the buyer.
Under FOB terms, the buyer is responsible for: arranging and paying ocean freight, cargo insurance, import customs clearance, and all costs from the moment of loading. The seller is responsible for: producing/purchasing the goods, transport to the loading port, loading onto the vessel, and export customs clearance.
In the customs context, the FOB value is not equivalent to the customs value in the EU. Since customs value in the EU is determined on a CIF basis, when importing goods on FOB terms, ocean freight and insurance costs to the port of entry into the EU customs territory must be added to the goods price. FOB is used exclusively in maritime transport — the equivalent for land/air transport is FCA (Free Carrier).
Under FOB terms, the buyer is responsible for: arranging and paying ocean freight, cargo insurance, import customs clearance, and all costs from the moment of loading. The seller is responsible for: producing/purchasing the goods, transport to the loading port, loading onto the vessel, and export customs clearance.
In the customs context, the FOB value is not equivalent to the customs value in the EU. Since customs value in the EU is determined on a CIF basis, when importing goods on FOB terms, ocean freight and insurance costs to the port of entry into the EU customs territory must be added to the goods price. FOB is used exclusively in maritime transport — the equivalent for land/air transport is FCA (Free Carrier).
Legal Basis
Incoterms 2020 (ICC)