Glossary FOB (Free on Board)

FOB (Free on Board) is a trade term used in international commerce, which means that the seller assumes responsibility for the goods until they are loaded onto the shipping vessel and cleared for export, while the buyer assumes responsibility for the transportation and delivery costs and risks from that point onward, including to the final destination. FOB is used in conjunction with a named port of shipment, and the seller is responsible for loading the goods onto the shipping vessel and for clearing the goods for export. It is one of the trade terms and conditions.