1. Read the product basis first
Compare quotes for the same technical version, material, finish, quantity and packaging. Record currency, payment terms and quote validity. A low unit price is not comparable if the scope differs.
2. Identify the named port and responsibilities
FOB under Incoterms 2020 is for sea or inland waterway transport. Its delivery and risk point is on board the vessel at the named port of shipment. The buyer normally arranges the main carriage and considers insurance and destination import obligations.
For air or courier movements, discuss an appropriate term such as FCA rather than treating FOB as a general label for any export shipment.
3. Compare the full agreed scope
Ask whether samples, tooling, branding, packaging, inspection and testing are included or separate. Identify export documentation responsibilities. Confirm freight, insurance, import duties and taxes through the actual arrangements.
The trade term does not by itself set product quality, payment, title transfer or the tax treatment. Those details need their own agreed basis.
Before you proceed
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- FORMTRUTH: how we work ↗
Platform workflow reference; the actual project, quote and order define its terms.


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