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Information International rules and organization Incoterms 2010 [iNKOTERMS 2010] FOB - Free on Board - Free on board

FOB

Incoterms 2010

FREE ON BOARD [... named port of shipment]
FREE ON BOARD [... named port of shipment]

This term is to be used only for sea and inland waterway transport.
"Free on Board" ( "Free on Board") means that the seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment, or arrange for the provision of goods delivered in this way. The risk of loss or damage to the goods passes when the goods are on board the ship, and from that point the buyer bears all costs.
The seller must deliver the goods either on board, or ensure that the delivered goods in such a way for shipping. Pointing to the obligation to "provide" takes into account the numerous sales chain, which are used frequently in commodity trading.
FOB may not be appropriate when the goods are handed over to the carrier prior to its placement on board the vessel, for example goods in containers, which is typical for delivery to the terminal. In such situations, it is advisable to use the term FCA.
FOB requires the seller to perform customs formalities for export, if applicable. However, the seller is not obliged to carry out customs formalities for import, pay import duties or perform other customs formalities for import.

THE SELLER

OBLIGATIONS OF THE BUYER

A.1. General obligations of the seller

B.1. General obligations of the buyer

The seller must, in accordance with the contract of purchase and sale provide the goods and the commercial invoice, the invoice, as well as any other evidence of conformity conditions of the contract of sale, which may be required by the contract.
Any document referred to in paragraphs A1-A10 may be replaced by an equivalent electronic record or procedure if agreed by the parties or is common.

The buyer must pay the price of the goods, as provided for in the contract of sale.
Any document referred to in paragraphs B1-B10 may be an equivalent electronic record or other procedure, if agreed by the parties or is common.

A.2. Licenses, permits, security checks and formalities

B.2. Licenses, permits, security checks and formalities

Licenses, permits, security checks and formalities
If required, the seller must, at his own expense and risk, an export license or other official authorization and carry out all customs formalities necessary for the export of goods.

If required, the buyer must obtain at his own expense and risk import license or other official authorization and carry out all customs formalities for the import of goods and its transportation through any country.

A.3. carriage and insurance

B.3. carriage and insurance

a) Contract of carriage
The seller no duty to the buyer under the contract of carriage. However, at the request of the buyer or if it is commercial practice and the buyer does not give timely instructions to the contrary, the seller may be at the expense and risk of the customer contract for carriage on usual terms. In any case, the seller may refuse to conclude a contract of carriage, without delay, by notifying the buyer.
b) Contract of insurance
The seller no duty to the buyer under a contract of insurance. However, the seller must provide the buyer, at his request, at his risk and expense (if any costs), the information necessary for the buyer of insurance.

a) Contract of carriage
The buyer shall at his own expense for the carriage of the goods from the named port of shipment, except in cases where the contract of carriage is the seller, as described in paragraph A3 a);
b) Contract of insurance
The buyer has no obligation to the seller to conclude a contract of insurance.

A.4. Supply

B.4. Taking delivery

The seller must deliver the goods, or by posting on the board, nominated by the buyer at the point of loading, if any, specified by the buyer at the named port of shipment, or by ensuring the provision of such goods supplied. In this and in another case, the seller must deliver the goods on the date or within the agreed period, in accordance with the customs of the port.
If a particular point of loading is not specified by the buyer, the seller may select the named port of shipment and the item that best suits his purpose.

The buyer must take delivery of the goods as soon as they have been delivered in accordance with paragraph A4.

A.5. Transfer of risks

B.5. Transfer of risks

Seller shall bear all loss or damage to the goods until it is delivered in accordance with paragraph A4, with the exception of the risks of loss or damage in the circumstances referred to in paragraph B5. .

Buyer assumes all risks of loss or damage that may occur from the date of delivery in accordance with paragraph A4.
If:
a) the buyer does not report the name of the ship in accordance with paragraph B7 or
b) the vessel nominated by the buyer fails to arrive on time so that the seller could act in accordance with paragraph A4, unable to take the goods, or closes for cargo earlier time, which has been reported in accordance with paragraph B7;
buyer bears all risks of loss or damage to the goods:
i) the agreed date, if no agreed date,
ii) of the notification made by the seller in accordance with paragraph A7 within the agreed period, and if this was not the notified period,
iii) the expiry date within the agreed delivery period,
provided that the goods were explicitly individualized as a commodity, which is the subject of the contract.

A.6. Division of costs

B.6. Division of costs

The seller must pay:
a) all costs relating to the goods until they have been delivered in accordance with paragraph A4, except for expenses payable by the purchaser as provided in paragraph B6; and
b) if required, the costs of customs formalities payable upon export of the goods and any duties, taxes and other charges payable when exported.

The buyer must pay:
a) all costs relating to the goods upon delivery, as provided in paragraph A4, except, if necessary, the costs of customs formalities necessary for the export of goods, as well as all taxes, fees and charges to be paid by the export of goods, as provided A6 in paragraph b);
b) all additional costs incurred due to:
i) Non-directional buyer proper notice in accordance with paragraph B7 or
ii) the fact that the vessel nominated by the buyer
did not arrive in time, or was not able to
take the goods, or closes for cargo earlier set forth in paragraph B7 time
provided that the goods were explicitly individualized as a commodity, which is the subject of the contract.
c) if necessary, to pay all costs, duties, taxes and other official charges as well as on the implementation of customs formalities payable upon import of the goods, and the cost to transport it through any country.

A.7. Notice to the buyer

B.7. Notice to the seller

The seller must, at the expense and risk of the buyer to give him adequate notice or that the goods have been delivered in accordance with paragraph A4, or that the ship is not taken at the agreed time.

The buyer must give the seller adequate notice of the vessel name, loading point and, if necessary, of a favorite time of delivery within the agreed period.

A.8. Document delivery

B.8. Proof of delivery

Seller shall, at its own expense provide the buyer with the usual proof that the goods have been delivered in accordance with paragraph A4.
If such evidence is not a transport document, the seller shall at the request of the buyer's expense and risk, to assist him in obtaining a transport document.

The buyer must accept the proof of delivery provided as envisaged in paragraph A8.

A.9. Checking, packaging, labeling

B.9. Inspection of goods

The seller must pay all costs associated with checking (checking quality, measuring, weighing, counting) which are necessary for the delivery of goods in accordance with paragraph A4, as well as the costs of inspection of goods before shipment, which is prescribed by the authorities of the exporting country.
The seller must at his own expense packaging of goods, except in cases when the particular trade is usually taken to ship specified in the contract goods unpacked. The seller can pack the goods in such a way as is necessary for its transportation, unless the buyer before the contract does not notify the seller of specific packaging requirements. Marking packaged goods must be carried out properly.

The buyer must pay the costs for the mandatory inspection of goods prior to shipment, except when such inspection is carried out by order of the authorities of the exporting country.

A.10. Assistance in obtaining information and relating to this expenditure

B.10. Assistance in obtaining information and relating to this expenditure

If need be, the seller is obliged to provide the purchaser or to assist him in obtaining, at the request of the buyer, at his risk and expense, documents and information, including safety information, which may require the purchaser to import goods and / or transportation to the final destination.
Seller shall reimburse Buyer for all costs and charges incurred by the buyer upon receipt or assistance in obtaining documents and information as provided in paragraph B10.

The buyer must notify the seller in a timely manner the requirements with regard to safety information, so that the seller could act in accordance with paragraph A10.
The buyer must reimburse the seller incurred by him costs and charges for providing or rendering assistance in obtaining documents and information as provided for in paragraph A10.
If required, the buyer is obliged to provide the seller or facilitate in the seller receiving, at the request of the seller, at his risk and expense, documents and information, including important safety information, which may require the seller to transport, export of goods and for their transport through any country.