FOB Contract of Exports

FOB Contract of Exports

Free on Board(FOB) is the most frequently used price quotation in the international market. Under this quotation, the exporter undertakes to pay all expenditure till loading of goods on board the ship, including documentation charges. All expenditure thereafter, such as ocean freight, marine insurance, unloading charges, etc., are borne by the importer.


Seller’s Obligations:

(a) To provide goods and commercial invoice, or its equivalent electronic message, in conformity with the contract of sale.

(b) To obtain any export licence or other official authorization and carry out all the customs formalities necessary for the exportation of goods.

(c) To deliver goods on board the vessel at the port of shipment on the date, or within the period stipulated.

(d) To give buyer sufficient notice that the goods have been delivered on board the vessel.

(e) To pay the costs of checking quality, measuring, weighing, counting, packing and marking of the goods.


Buyer's Obligations:

(a) To pay the price as provided in the contract of sale.

(b) To obtain import licence or other official authorisation and carry out all customs formalities for the importation of goods.

(c) To take the delivery of goods when the goods have been delivered in accordance with the terms of the contract.

(d) To reserve necessary shipping space and give due notice of the same to the exporter; and

(e) To bear all costs and risks of goods from the time when they shall have effectively been passed the ship’s rail.



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