FOB

INCOTERMS 2000 Breakdown dividing responsibility and charges between BUYER (importer) and SELLER (exporter)	FOB Free on Board ...Named Port of Shipment
Applicable Modes of Transportation	Sea or inland waterway only
Warehouse Storage & Labor at Origin	SELLER
Export Packing	SELLER
Loading on Carrier at Point of Origin	SELLER
Domestic Pre-carriage /Local Cartage	SELLER
Contract for Main Mode of Carriage	BUYER
Export Documentation	BUYER (1)
Export Customs Clearance/License	SELLER
Port Receiving Fees	SELLER
Forwarder's Fees	SELLER (4)
Transportation Equipment & Accessories	SELLER (5)
Loading at Carrier's Terminal	SELLER (5)
International Main Carriage Charges	BUYER
Cargo Insurance	***
Charges in Foreign Port/Airport	BUYER
Unloading at Terminal	BUYER
Customs Clearance in Importing Country	BUYER
Customs Duties and Taxes Abroad	BUYER
Delivery Charges to Final Destination	BUYER
Unloading at Buyer's Premises	BUYER
RISK TRANSFER	Goods have been delivered on board named vessel at named port of shipment

Notes:

***No obligation by either Buyer or Seller. Must be defined in contract.

1. Seller renders assistance/makes arrangements at Buyer's request and expense and as per sales contract.
2. Negotiable based upon mode of transportation and terms of contract. Needs to be clearly defined in sales contract.
3. FAS requires Buyer to clear goods for export. Term should not be used if Buyer cannot carry out directly or indirectly the export formalities.
4. The payment of the forwarder's fees is somewhat controversial depending on the contract of sale.
5. Risk of loss or damage to the goods is transferred from the Seller to the Buyer when the goods pass over the ship's rail in the port of shipment. Not appropriate for Ro/Ro or container shipments where ship's rail serves no practical purpose.
6. Place of Destination stated determines who will pay costs.