Incoterms® 2020 Rules—FOB Free on board

The following Commercial practice note provides comprehensive and up to date legal information covering:

  • Incoterms® 2020 Rules—FOB Free on board
  • Explanatory notes for users
  • 1. Delivery and risk
  • 2. Mode of transport
  • 3. ‘or procuring the goods so delivered’
  • 4. Export/import clearance
  • The seller’s and buyer’s obligations

Incoterms® 2020 Rules—FOB Free on board

This Practice Note comprises the guidance note to the FOB Free on board Incoterm in the Incoterms® 2020 rules, produced here with the permission of ICC Publishing SA. Incoterms® 2020 rules and other ICC publications are available from ICC Publishing SA, 33-43 avenue du Président Wilson, 75116 Paris, France and from ICC United Kingdom, 1st Floor, 1-3 Staple Inn London, WC1V 7QH, United Kingdom, and www.iccwbo.org.

Incoterms® 2020 rules came into force on 1 January 2020, and updated the Incoterms® 2010 rules to reflect changes to the market over the last decade. For the FOB Incoterm valid up until that date, see Practice Note: Incoterms® 2010 Rules—FOB Free on board.

FOB (insert named port of shipment) Incoterms® 2020

Explanatory notes for users

1. Delivery and risk

‘Free on Board’ means that the seller delivers the goods to the buyer

  1. on board the vessel

  2. nominated by the buyer

  3. at the named port of shipment

  4. or procures the goods already so delivered.

The risk of loss of or damage to the goods transfers when the goods are on board the vessel, and the buyer bears all costs from that moment onwards.

2. Mode of transport

This rule is to be used only for sea or inland waterway transport where the parties intend to deliver the goods by placing the goods on board a vessel. Thus, the FOB rule

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