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FREE ON BOARD
(…named port of shipment)

《Free on Board》 means that the seller fulfils his obligation to deliver when the goods haw passed over the ship's .rail at the named port of shipment. This means that the buyer has to beer all costs and risks of loss of or damage to the goods from that point.
The FOB term requires the seller to clear the goods for export.
This term can only be used forsea or inland waterway transport. When the ship's rail serves no practical purpose, such as in the case of roll-on/roll-off or container traffic, the FCA term is more appropriate to use.

A1 Provision of goods in conformity with the contract

Provide the goods and the commercial invoice. or its equivalent electronic messages~ in conformity with the contract of sale and any other evidence of conformity which may be required by the contract.

A2 Licences, authorisations and formalities

Obtain at his own risk and expense any export licence or other official authorisation and carry out all customs formalities necessary for the exportation of the goods.

A3 Contract of carriage and insurance

a) Contract of carriage
NO obligation.

b) Contract of insurance
No obligation.

A4 Delivery

Deliver the goods on board the vessel named by the buyer at the named port of shipmant on the date or within the period

stipulated and in the manner customary at the port.

A5 Transfer of risks

Subject to provisions of B. 5. bear all risks of loss of or damage to the goods until such time as they have passed the ship's

rail at the named port of shipment.

A6 Division of costs

Subject to the provisions of B. 6.

pay all costs relating to the goods until such time as they have passed the ship's rail at the named port of shipment.

pay the costs of customs formalities necessary for exportation as well as all duties, taxes and other official charges payable

upon exportation.

A7 Notice to the buyer

Give the buyer sufficient notice that the goods have been delivered on board.

A8      Proof of delivery, transport document or equivalent electronic message

Provide the buyer at the_seller's expense with the usual document in proof of delivery in accordance with A. 4.

Unless the document referred to in the precedi~g paragraph is the transport document, render the buyer,at the latter's request, risk and expense, every assistance in obtaining a transport document for the contract of carriage (for example,a negotiable bill of lading, a non-negotiable sea waybill, an inland waterway document, or a multimodal transport document).

Where the seller and the buyer have agreed to communicate electronically, the document referred to in the preceding paragraph may be replaced by an equivalent electronic data interchange (ED1) message.

A9 Checking-packaging- marking

Pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) which ate necessary for the purpose of delivering the goods in accordance with A. 4.

Provide at his own expense packaging (unless it is usual for the particular trade to ship the goods of the contract description unPacked) which is required for the transport of the goods, to the extent that the circumstances relating to the transport (e. g. modalities, destination) are made known to the seller before the contract of sale is concluded. Packaging is to be marked appropriately.

A10 Other obligations

Render the buyer at the latter's request, risk and expense,every assistance in obtaining any documen , ts or equivalent electronic messages (other than those mentioned in A. 8. ) issued or transmitted in the country of shipment and/or of origin which the buyer may require for the importation of the goods and, where necessary, for their transit through another country.

Provide t he buyer,upon request,with the necessary information for procuring insurance.

 ＢTHE BUYER MUST

B1 Payment of the price

Pay the price as provided in the contract of sale.

B2 Licences, authorisations and formalities

Obtain at his own risk and expense any import licence or o,th~ er official authorisation and carry out all customs formalities for the importation of the goods and, where necessary, for their transit through another cou ntry.

B3 Contract of carriage

Contract at his own expense for the carriage of the goods frorn the narned port of shipmert.

B4 Taking delivery

Take delivery of the goods in accordance with A. 4.

B5 Transfer of risks

Bear all risks of iocs of or damage to the goods from the tirne they have passed the ship's rail at the named port of shipment.

Should he fail to give notice ~n accordance with B. 7. , or should the vessel named by him fail to arrive on time, or be unable to take the goods, or close for caigo earlier than the stipulated time, bear all risks of loss of or damage to the goods frorn the a7 greed date or the expiry date of the period stipulated for delivery provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or 6therwise identified as the contract goods.

B6 Division of costs

Pay all costs relating to the goods from the time they have passed the ship's rail at the named port of shipment.

Pay any additional costs incurred, either because the vess61 named by him has failed to arrive on time, or is unable to take the goods, or will close for cargo earlier than the stipulated date, or because the buyer has failed to give appropriate notice in accor1 dance with B. 7. provided, however, that the goods have been duly appropriated to the contract,that is to say, clearly set aside or otherwise identified as the contract goods.

Pay all duties, taxes and other official charges as well as the costs of carrying out customs formalities payable upon importation of the goods and, where necessary, for their transit through another country.

B7 Notice to the seller

Give the seller sufficient notice of the vessel name,. loading point and required delivery time.

B8     Proof of delivery, transport document or equivalent electronic messag

Accept the proof of delivery in accordance with A. 8.

B9 Inspection of goods

Pay, unless otherwise agreed, the costs of pre-shipment inspectiofi except when mandated by the authorities of the country of export.

B10     Other obligations

Pay all costs and charges incurred in obtaining the documents 16
or equivalent electronic messages mentioned in A. 10. and reimburse those incurred by the seller in rendering his assistance in accordance therewith.

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