Sourcing glossary
FOB
Also known as: Free On Board
An Incoterm under which the seller clears goods for export and loads them on board the vessel at a named port; risk and main freight cost pass to the buyer once the goods are on board.
FOB is always followed by a port of loading, for example FOB Shenzhen or FOB Ningbo. The supplier pays inland transport to that port, export customs clearance and loading. The buyer pays ocean freight, insurance, destination charges and import duties.
FOB is meant for sea and inland waterway shipments. For air freight or containerised cargo handed over at a terminal, FCA is the more accurate term.
See the full comparison in EXW vs FOB vs DDP.
Related terms
Guides that use this term
Suppliers
How to Write an RFQ Chinese Suppliers Will Actually Answer
What to put in a request for quotation so a Chinese supplier can price it: the fields, the specs by category, a copy-paste template and a WhatsApp first message.
Updated 2026-10-19 · 7 min read
Compliance
Is Your Order Too Small to Import from China? A Break-Even Test
Why 20 units or a US$100–500 budget rarely pays to import from China: per-shipment fixed costs, a simple break-even test, and six options for small buyers.
Updated 2026-10-19 · 7 min read
Suppliers
Is My Chinese Supplier a Scam? 12 Patterns and the Checks That Catch Them
The twelve supplier scams importers meet in China, from the bank-account switch to the vanishing deposit, the check that exposes each, and what to do if you already paid.
Updated 2026-10-14 · 8 min read
Compliance
Importing from China to Peru: SUNAT Duties, IGV, Thresholds and the FTA
How a Peruvian importer clears goods from China: the US$200 and US$2,000 thresholds, ad valorem 0/6/11%, IGV and IPM, IGV perception, customs agents and the China FTA.
Updated 2026-10-14 · 6 min read
Compliance
Import Taxes from China to Mexico: Duty, IVA, DTA and the 33.5% Courier Rate
What a Mexican importer pays on goods from China in 2026: IGI by tariff line (5–50% since January), 16% IVA, DTA, antidumping quotas, the 33.5% courier rate, an example.
Updated 2026-10-14 · 7 min read
Shipping
Shipping Small Orders from China to Latin America: Brazil, Mexico, Peru
Courier, air or sea for a first order from China to Latin America, the customs thresholds and taxes in Brazil, Mexico and Peru, and how consolidation works.
Updated 2026-10-10 · 8 min read
Part of Incoterms & Payment.