FOB (Free on Board)




Garment & Textile · Production

FOB (Free on Board)

Factory sources everything and delivers at buyer’s export port. Higher margin for factory.

Category: Production Origin: Global Era: Modern
Pronunciation: 🇺🇸 US/fɔb fri ɔn bɔrd/ 🇬🇧 UK/fɔb fri ɔn bɔːd/

Definition

Factory sources everything and delivers at buyer’s export port. Higher margin for factory.

Industrialist View

Full-package service; buyer pays lumpsum. Preferred by retail.

Construction & Use

Incoterms 2020 definition.

Related Terms

CMT, FCA, CIF, Full-Package

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