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Gulf Cosmopolitan
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Incoterms® 2020

Who pays, who carries the risk

Choose a rule to see, step by step, which party pays each cost and who bears the risk of loss or damage.

FOB — Free On Board

SellerBuyer

Risk passes to the buyer after: Loading on board

  1. 01Loading at seller's premisesPays:SellerRisk:Seller
  2. 02Export clearancePays:SellerRisk:Seller
  3. 03Transport to port / carrierPays:SellerRisk:Seller
  4. 04Loading on boardPays:SellerRisk:Seller
  5. 05Main carriage (freight)Pays:BuyerRisk:Buyer
  6. 06Cargo insurance(optional)Pays:BuyerRisk:Buyer
  7. 07Transport to named destinationPays:BuyerRisk:Buyer
  8. 08Unloading at destinationPays:BuyerRisk:Buyer
  9. 09Import clearance and dutiesPays:BuyerRisk:Buyer

PaysRisk

Container cargo: ICC recommends FCA, CPT or CIP instead of FAS, FOB, CFR or CIF when goods are handed to the carrier at a container terminal rather than loaded directly on board.

Simplified educational overview of Incoterms® 2020 (ICC). Contracts, named places and port practice can change the split; always confirm terms with your counsel.

Discuss your contract terms