FOB
For maritime use only. The seller bears the risk upon loading onto the ship, and the risk of risk transfers to the buyer at the time of loading onto the ship.
Incoterms Responsibility Quick Reference/Comparison
Cost burden / Risk transfer / Compare documents graphically (Incoterms® 2020)
By simply selecting the transport mode, packaging style, and comparison terms, you can sort out easily misunderstood points on a single screen.
Comparison tool (condition selection)
① Select conditions
Place of departure
Place of arrival
② Results
quick reference map
Seller buyerCost burden table
Required documents
copy paste
Incoterms® are ICC rules, and the provisions of individual contracts take precedence.
Incoterms® do not specify ownership transfer or payment terms (mainly to organize risk sharing and cost sharing).
Differences between FOB / CIF / DDP (Summary of key points)
How to use 3 conditions
CIF
For maritime use only. The seller arranges freight and insurance, but the risk is transferred to the port of departure, similar to FOB.
DDP
Compatible with all transport modes. The condition is that the seller is responsible for import customs clearance and duties/taxes.
Static comparison table (initial display)
| item | FOB | CIF | DDP |
|---|---|---|---|
| Cost burden (main freight) | buyer | Seller | Seller |
| Transfer of risk | When loading onto the ship at the departure port | When loading onto the ship at the departure port | When ready for unloading at destination |
| Import customs clearance | buyer | buyer | Seller |
| Insurance arrangement | buyer | Seller (minimum compensation guideline) | Adjusted by contract |
Which one should you choose? (Card by purpose)
Frequently noted points (mode/container/insurance)
- FAS/FOB/CFR/CIF is for marine and inland waterways only. Consider FCA/CPT/CIP/DAP/DPU/DDP for air and intermodal transportation.
- When handling container cargo at a port, FOB/CFR/CIF may differ from practice. Also compare FCA/CPT (CIP if insurance is included).
- CIF/CIP is a condition where the seller is responsible for arranging insurance. In general, CIP provides broader coverage, while CIF provides the lowest coverage.
FAQ
Which one should you choose?
First, press the objective card to set the candidates, and make a decision by viewing the difference in the cost burden table.
What changes between ships and aviation?
Maritime-only conditions such as FOB/CIF are not applicable to aviation. If a mode alert is displayed, please switch to all transport compatible conditions.
Can you create explanatory notes for business partners?
You can switch the writing style between Japanese/English on the copy and paste tab and copy with a shared URL.
Detailed attention (disclaimer)
- Practices vary depending on country/item/regulations/settlement conditions (L/C, etc.).
- This page is for general information and does not constitute legal or tax advice.
- Incoterms® are trademarks and copyright protected, please refer to ICC publications for official interpretations.