FOB— Free On Board(Giao lên tàu)
FOB (Free On Board) is the maritime rule most familiar to Vietnamese traders: the seller delivers once the goods are on board the vessel nominated by the buyer at the loading port, after export clearance. Vietnam's export customs value is set at this same price level.
Cost, risk and clearance at a glance
Delivery & risk transfer
Risk passes exactly when the goods are on board at the loading port. Before that, including the lift, the risk is the seller's; after it, including the sea voyage, discharge and inland delivery, the risk is the buyer's.
Cost split
The seller pays up to the point the goods are on board (inland haulage, origin local charges and export clearance); the buyer pays ocean freight, insurance (if bought) and all destination-side costs.
Insurance
Neither party is obliged to insure. Whichever party bears the transit risk should consider buying cover for that leg.
Watch out for
- FOB should not be used for containers: the box sits at the terminal for days before loading, and during that time the seller still bears the risk without controlling the cargo. ICC recommends FCA for containers.
- The buyer books the vessel, so the seller should agree a clear vessel-arrival window in the contract to avoid cargo waiting at port for the buyer's ship.
- For sea and inland-waterway transport only.
Converting a FOB price to Vietnamese customs value
Importing into Vietnam
- + International freight to the import gate
- + International insurance (if bought)
Exporting from Vietnam
The invoice price is already at the valuation point, so the customs value equals the invoice price.
Compute duty with this term →Legal basis: Circular 39/2015/TT-BTC, amended by 60/2019/TT-BTC.
"Incoterms" is a registered trademark of ICC. This page is HSCodeVN's own plain-language summary, for reference only; the authoritative rules are ICC's Incoterms® 2020 publication.