«Free on Board» means that the seller delivers when the goods pass the ship’s rail at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export. This term can be used only for sea or inland waterway transport. If the parties do not intend to deliver the goods across the ship’s rail, the FCA term should be used.
THE SELLER’S OBLIGATIONS | THE BUYER’S OBLIGATIONS |
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A1 Provision of goods in conformity with the contract
The seller must provide the goods and the commercial invoice, or its equivalent electronic message, in conformity with the contract of sale and any other evidence of conformity which may be required by the contract. |
B1 Payment of the price
The buyer must pay the price as provided in the contract of sale. |
A2 Licences, authorizations and formalities
The seller must obtain at his own risk and expense any export licence or other official authorization and carry out, where applicable (Refer to Introduction paragraph 14) , all customs formalities necessary for the export of the goods. |
B2 Licences, authorizations and formalities
The buyer must obtain at his own risk and expense any import licence or other official authorization and carry out, where applicable (Refer to Introduction paragraph 14), all customs formalities for the import of the goods and, where necessary, for their transit through any country. |
A3 Contracts of carriage and insurance
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B3 Contracts of carriage and insurance
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A4 Delivery
The seller must deliver the goods on the date or within the agreed period at the named port of shipment and in the manner customary at the port on board the vessel nominated by the buyer. |
B4 Taking delivery
The buyer must take delivery of the goods when they have been delivered in accordance with A4. |
A5 Transfer of risks
The seller must, subject to the provisions of B5, bear all risks of loss of or damage to the goods until such time as they have passed the ship’s rail at the named port of shipment. |
B5 Transfer of risks
The buyer must bear all risks of loss of or damage to the goods
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A6 Division of costs
The seller must, subject to the provisions of B6, pay
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B6 Division of costs
The buyer must pay
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A7 Notice to the buyer
The seller must give the buyer sufficient notice that the goods have been delivered in accordance with A4. |
B7 Notice to the seller
The buyer must give the seller sufficient notice of the vessel name, loading point and required delivery time. |
A8 Proof of delivery, transport document or equivalent electronic message
The seller must provide the buyer at the seller’s expense with the usual proof of delivery in accordance with A4. |
B8 Proof of delivery, transport document or equivalent electronic message
The buyer must accept the proof of delivery in accordance with A8. |
A9 Checking – packaging – marking
The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) which are necessary for the purpose of delivering the goods in accordance with A4. |
B9 Inspection of goods
The buyer must pay the costs of any pre-shipment inspection except when such inspection is mandated by the authorities of the country of export. |
A10 Other obligations
The seller must render the buyer at the latter’s request, risk and expense, every assistance in obtaining any documents or equivalent electronic messages (other than those mentioned in A8) issued or transmitted in the country of shipment and/or of origin which the buyer may require for the import of the goods and, where necessary, for their transit through any country. |
B10 Other obligations
The buyer must pay all costs and charges incurred in obtaining the documents or equivalent electronic messages mentioned in A10 and reimburse those incurred by the seller in rendering his assistance in accordance therewith. |