FOB (Free On Board) contract has the following duties for the exporter:
- Supply the contracted goods in conformity with the contract of sale and deliver the goods on board vessel named by the buyer at named port of shipment;
- Bear all costs and risks of the goods until such time as they shall have effectively passed the ship’s rail; and
- Provide at his own expense the customary clean documents in proof of the delivery of goods.
Duties of the importer under FOB include:
- Reserve the necessary shipping space and give due notice of the small to the exporter; and
- Bear all costs and risks of the goods from the time they have effectively passed the ship’s rail and pay the price as provided for in the contract.