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What does Free on board mean? It is one of the terms most frequently used in the field of commercial transactions. But what does it really entail? Let’s analyze it below.Free on board, as its name indicates, means according to its translation “free on board or agreed loading port”. In reality, it consists of an incoterm, a clause responsible for regulating international trade, used for all those buying and selling transactions, which take place by sea or river.If we want to refer to this term correctly, we should use the term “Free on board” followed by the loading port.In such a transaction, we find two parties, the seller on one side and the buyer on the other. Both will have different responsibilities and charges, always assumable by the corresponding party. In this way, the security of the purchase-sale is guaranteed.In Free on board, the main idea of this incoterm is that the seller must fulfill his obligation to deliver the cargo, when the goods on board cross the ship’s rail, thus the clearance of the goods being carried out on board the ship.In this way, the seller exempts himself from any responsibility for damages or incidents that the goods may suffer once he has fulfilled his obligation. In that case, the responsibility will fall on the buyer.Similarly, the buyer must also take charge of the subsequent costs once the goods have been delivered, such as customs procedures, unloading, etc.However, there are more responsibilities on the part of the buyer and the seller in this process of transaction by river or sea. If you want to be sure of all of them and fully comply with the regulations, we advise you to consult us without obligation, and we will contact you to clarify all your doubts about the operation.
