B-6-29- Incoterms © 2010 fob


FOB, Free On Board, is one of the 11 Incoterms © 2010.



Incoterms 2010 ©
 CFR   CIF   CIP   CPT   DAP   DAT   DDP   EXW   FAS   FCA   FOB  

The Incoterms © FOB 2010 is an Incoterms © with the main transport "not paid" by the exporter.

The Incoterms © FOB 2010 is an "main carriage unpaid" Incoterms ©.

The Incoterms © FOB 2010 is used for maritime transport

The Incoterms © FOB 2010 has variations.

6-29-1- Summary

The goods are placed on board the ship by the exporter. The importer chooses the ship and pays the freight. There is no longer the notion of "ship's rail". The exporter is obligated to carry out export customs clearance. This Incoterm © resembles the Incoterms © FCA.

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.

6-29-2- 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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6-29-3- 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.

6-29-4- 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.

6-29-5- 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.

6-29-6- The point of ownership transfer: on board the ship


Do not neglect to specify the liner Term(s).


6-29-7- Incoterms © FOB 2010: Distribution of costs and risks

 Description

 Costs

Risks
 Packaging  Exporter  Exporter
 Loading at the factory  Exporter  Exporter
 Pre-transport  Exporter  Exporter
 Export customs  Exporter  Exporter
 Handling on departure  Exporter  Exporter
 Main transport  Importer  Importer
 Transportation insurance  Importer  Importer
 Handling on arrival  Importer  Importer
 Import customs  Importer  Importer
 Post-transport  Importer  Importer
 Unloading at the factory  Importer  Importer