Incoterm FOB 2020, responsibilities

What does the FOB Incoterm include?

On the one hand, the seller is obliged to deliver the agreed goods and all necessary documents. He is also responsible for the packing and packaging of the goods. Transport and customs clearance in the country of origin will be the responsibility of the seller. Finally, the exporter is also responsible for the costs of departure at origin.

What are the responsibilities of the importer?

Of course, he will have to pay the seller for the goods. He will also be responsible for the transport freight. On the other hand, at the place of destination, the importer must bear the costs of arrival, customs clearance at destination, the relevant taxes and duties and, finally, the inland transport of the goods in the country of destination.

Incoterm FOB 2020 example

We invent and explain a practical example of a Free On Board case.

Let’s imagine the Spanish company Zapatos de Alicante SL, which has sold a container of shoes to the Colombian company Zapatero a tus zapatos S.A.

The exporter will have to: – Make the package of shoes, take care of the transport of the shoes until they are inside the agreed ship or transport. The exporter will also be in charge of the customs clearance at origin and the departure expenses at origin.

On the other hand, the buyer or importer will be responsible for paying for the transport from Spain to Colombia. He will also be responsible for unloading the goods once the ship has arrived in Colombia and their subsequent inland transport in Colombia. And he will be responsible for the payment of customs and taxes in Colombia.

Please, if you still have any doubt about the Incoterm FOB 2020 you can fill in the form below and we will help you.

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