FOB

Related terms

Incoterms

Incoterms are the International Chamber of Commerce rules that define who pays for freight, insurance, and duties, and where risk passes from seller to buyer in international trade. The current set, Incoterms 2020, has 11 rules, including EXW, FCA, FOB, CIF, DAP, and DDP.

DDP

DDP is Delivered Duty Paid, the Incoterm under which the seller delivers goods to the buyer's named place, cleared for import, with freight, duties, and taxes paid. It puts the most responsibility on the seller and gives the buyer the closest thing to a true landed price.

Landed cost

Landed cost is the total cost of a part delivered to the buyer's dock, including piece price, tooling amortization, packaging, freight, insurance, duties, tariffs, brokerage, and inventory carrying cost. Comparing offshore and domestic quotes on piece price alone understates the cost of the offshore part.