FOB (valuation basis)
Also called: free on board · FOB value
As a valuation basis, FOB means the value of goods loaded on board at the port of export, without international freight and insurance. The United States values imports broadly on this basis, and many countries report export statistics at FOB value. FOB is also an Incoterms rule for sea and inland waterway transport.
In practice
Duty on US imports is usually lower than the same goods would bear on a CIF basis, and freight must be shown separately on the invoice to be excluded.
Applies to: 
USA
Related terms
- Customs value
- The value of imported goods on which ad valorem duties are calculated. Almost all countries follow the WTO Customs Valuation Agreement, under which…
- CIF (valuation basis)
- As a valuation basis, CIF means the price of the goods plus the cost of insurance and transport up to the place where goods enter the customs…
- Incoterms
- A set of standard three-letter trade terms published by the International Chamber of Commerce that allocate delivery point, risk, costs and customs…