Important Considerations in FOB Incoterms

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In this section, we will discuss some of the crucial elements that one should look at when dealing with FOB Intercoms-

Passing of Risk and Accountability
It is vital to understand about shifting of risk and responsibility from the seller to the buyer in the aspect of FOB Incoterms. As per FOB Origin, the buyer holds the responsibility for the goods once they leave the seller’s slovenia phone number list location. It will be the buyer who will bear all the costs and risks associated with transportation from that point forward. On the contrary, as per the FOB Destination, it will be the seller’s responsibility of the goods until they reach the buyer’s destination.

Carriage and Insurance
As per the FOB Incoterms, freight insurance is not a requirement, but it is the buyer’s decision if they would like to opt for an insurance policy for their goods. It is not the seller’s responsibility to contract for carriage, but if the buyer demands it, the seller should provide all the required information to make arrangements for carriage at the buyer’s risk and expense.

Allocation of Costs
This is yet another important aspect that both parties should decide on before shipping. Therefore, until the shipment is delivered, the seller should bear all the costs, such as proof of delivery, record filing, taxes, etc.