The Incoterm FOB stands for ‘Free On Board’. It applies exclusively to sea transport and/or inland waterway transport. It belongs to the so-called dispatch clauses where the seller does not assume the costs of the main transport (group F).
Free on Board means that the seller fulfils their delivery obligation when they place the goods on board the ship at the named port of shipment. They pack the goods at their own expense and clear them for export.
- Particularly suitable for bulk goods. This clause is not suitable if the goods are handed over to the carrier before they are on board the ship. In general cargo or container transport, the FCA clause may therefore be preferable.
- Remember that when calculating the statistical value, the associated costs up to the EU external border must be added to the value of the goods.
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