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What are the FOB seller's main obligations?


What are the FOB seller's main obligations?


FOB Seller's main obligations


A. The Seller is responsible for delivering the contracted goods to the vessel nominated by the Buyer at the named port of shipment within the date or period stipulated in the FOB contract in accordance with the usual manner at the port and giving the Buyer sufficient shipping advice.


B. Be responsible for obtaining an export license or other approval certificates (commodity inspection certificate, certificate of origin, etc.) to handle export procedures (customs declaration, export warehousing, etc.).


C. Bear all costs and risks of the goods up to the time when they pass the ship's rail at the port of shipment (actually up to the time when they reach the hold of the ship).


D. Provide commercial invoices and usual documents (on-board ocean bill of lading) evidencing delivery of goods on board.


Points to note in FOB actual business


A. Port of departure indicated in the trade contract: port of departure shall be a seaport or river port (Nantong port, Chongqing port, etc., are inland river ports)


B. In FOB trade, the seller is required to provide a clean on-board bill of lading, and the transfer point of risks and expenses is in the ship's hold designated at the port of shipment.


C. In connection with cargo, the trade contract shall specify who will pay the extra charges such as dead freight, demurrage and storage insurance.


D. Who shall bear the loading charges at the loading port, i.e., who shall pay the THC charges, and who shall pay the sea freight and who shall pay the THC charges according to international trade principles.


E. When signing trade contracts with American customers and other American customers, pay attention to the fact that the customers choose the trade practice of INCOTERMS 1990/2000, which is also the internationally accepted practice, in determining the price terms. Because two conventions interpret the same FOB term differently, the risks, costs, liabilities and obligations of both parties are quite different.


F. Negotiate with the customer that they can only appoint a shipping company or a shipping agency, that the forwarder should be arranged by us, and that the forwarder at the destination port should also be appointed by our forwarder, which can greatly reduce trade risks.


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