Payment and shipment arrangements are agreed with the buyer before order confirmation and are documented in the quotation, proforma invoice or final commercial agreement.
1. FOB — Free On Board
Under FOB terms, the seller is responsible for preparing the goods for export and delivering them on board the vessel at the agreed port of shipment.
After the goods are loaded on board the vessel, the buyer generally takes responsibility for the main ocean freight, import formalities, duties and other costs applicable after the agreed transfer point.
2. CIF — Cost, Insurance & Freight
Under CIF terms, the seller arranges the goods, export formalities, freight and the agreed cargo insurance for transportation to the named destination port.
The buyer remains responsible for applicable import clearance, duties, taxes and destination charges unless otherwise agreed in the commercial contract.
Shipment Documentation
Shipping documents may include the commercial invoice, packing list, certificate of origin, bill of lading and other documents required by the buyer, bank, destination country or agreed payment terms.