B-6-18- Incoterms © 2000 fob


FOB, Free On Board, is one of the 13 Incoterms © 2000.



Incoterms 2000 ©
 CFR   CIF   CIP   CPT   DAF   DDP   DDU   DEQ   DES   EXW   FAS   FCA   FOB  

The Incoterms © FOB 2000 is an Incoterms © with the main transport "not paid" by the exporter.

The Incoterms © FOB 2000 is an "main carriage unpaid" Incoterms ©.

The Incoterms © FOB 2000 is used for maritime and fluvial transport

The Incoterms © FOB 2000 has variations.

6-18-1- Summary

The goods are placed on board the ship by the exporter. The importer chooses the ship and pays the freight. Risk and cost transfer takes place once goods enter or exit the ship, "passed the ship's rail". The exporter is obligated to carry out export customs clearance. It is similar to the FCA Incoterm ©, with the exception that the handling costs are borne by the exporter.

Rights and obligations can be amended using extension clauses. They are variations (i.e. FOB stowed). This variation provides that the stowage operation is the responsibility of the exporter. It is advisable to insert liner terms.

6-18-2- From the viewpoint of the importer.

The importer chooses the carrier for both the main and post-shipment transports. This, the importer pays freight. As indicated on the table, the costs and risks begin when the carrier obtains possession of the goods.
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6-18-3- Advantages for the importer

The importer is in charge of delivery operations within its country. The importer is not responsible for packaging, which is advantageous due to the exporter’s familiarity with companies specializing in packaging for export. This operation will be carried out in a professional manner, free of errors.

Skills and experience in international transactions, or working with an international expert such as a freight forwarder, allows the importer to assume the responsibilities of customs clearance.

6-18-4- From the viewpoint of the exporter

As indicated on the costs and risks table, the exporter is responsible for the pre-shipment routing, handling, customs clearance and packaging.

6-18-5- Advantages for the exporter

Il ne traite que les opérations de son pays, ce type d'Incoterms © est utilisé lorsque chacun connaît bien les intervenants de son pays. The exporter supports operations in its country. This Incoterm © is used when a high level of familiarity exists among the involved stakeholders. The exporter must be very familiar with all intervening stakeholders until the goods pass the ship's rail.

6-18-6- The point of ownership transfer: passed the ship's rail


Clarify Liner terms


6-18-7- Incoterms © FOB 2000: Distribution of costs and risks

 Description

 Costs

Risks
 Packaging  Exporter  Exporter
 Choice of carrier  Importer  Exporter
 Pre-transport  Exporter  Exporter
 Loading  Exporter  Exporter
 Costs of loading  Importer  Exporter
 Unloading  Importer  Importer
 Costs of unloading  Importer  Importer
 Transport payment  Importateur from the maritime freight  Importer Main carriage
 Insurance payment  Importateur "passed the ship's rail"  Importer
 Import customs fees  Importer  Importer
 Export customs fees  Exporter  Exporter
 Post-transport  Importer  Importer