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    Incoterms 2020 Explainer

    Understand all 11 Incoterms with interactive comparison. See who pays what, where risk transfers, and calculate landed costs.

    FOB
    Free On Board

    Group F Β· Sea only transport

    Seller delivers goods on board the vessel. Risk passes once goods are loaded. Most popular term for India exports.

    Seller's Responsibility

    • Deliver on board vessel
    • Export clearance
    • Loading costs

    Buyer's Responsibility

    • Main carriage (freight)
    • Import clearance
    • Insurance

    Risk Transfer Point

    On board the vessel at port of shipment

    Best For

    Most common for India sea shipments

    Quick Comparison

    TermExportFreightInsuranceImportMode
    EXWπŸ”΄ BuyerπŸ”΄ BuyerπŸ”΄ BuyerπŸ”΄ BuyerAny
    FCA🟒 SellerπŸ”΄ BuyerπŸ”΄ BuyerπŸ”΄ BuyerAny
    FAS🟒 SellerπŸ”΄ BuyerπŸ”΄ BuyerπŸ”΄ BuyerSea only
    FOB🟒 SellerπŸ”΄ BuyerπŸ”΄ BuyerπŸ”΄ BuyerSea only
    CFR🟒 Seller🟒 SellerπŸ”΄ BuyerπŸ”΄ BuyerSea only
    CIF🟒 Seller🟒 Seller🟒 SellerπŸ”΄ BuyerSea only
    CPT🟒 Seller🟒 SellerπŸ”΄ BuyerπŸ”΄ BuyerAny
    CIP🟒 Seller🟒 Seller🟒 SellerπŸ”΄ BuyerAny
    DAP🟒 Seller🟒 SellerπŸ”΄ BuyerπŸ”΄ BuyerAny
    DPU🟒 Seller🟒 SellerπŸ”΄ BuyerπŸ”΄ BuyerAny
    DDP🟒 Seller🟒 SellerπŸ”΄ Buyer🟒 SellerAny

    Landed Cost Calculator

    India Trade Tip

    FOB and CIF are the most common Incoterms for India exports. FOB gives the buyer more control over freight costs; CIF is simpler for first-time importers.

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