Incoterms 2010 |
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. |
The buyer must pay the price of the goods, as provided for in the contract of sale. |
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 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 |
a) Contract of carriage |
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. |
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. |
A.6. Division of costs |
B.6. Division of costs |
The seller must pay: |
The buyer must pay: |
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. |
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 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. |
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. |