FOB — Free On Board, explained for China imports
FOB is the Incoterm you will see most often on a China sea-freight quote. It means the supplier delivers the goods, cleared for export, on board the vessel at the origin port. Once the goods are loaded, the cost and risk pass to you.
Quick answer
Who pays what under FOB
Supplier covers (up to the ship)
- Goods at the agreed price and quality
- Inland transport to the origin port in China
- Export customs clearance and documents
- Loading the goods on board the vessel
You cover (after it is on board)
- Ocean (or air) freight to your country
- Cargo insurance (optional, recommended)
- Destination port and terminal charges
- Import customs clearance + duty and VAT/GST
- Final delivery to your warehouse or 3PL
Import duty and VAT/GST are yours under FOB, but the amount depends on the destination country’s official tariff and your product’s classification — never a fixed rate.
Next decision
Turn the FOB price into a real total
Questions
FOB: common questions
What does FOB mean in simple terms?
FOB (Free On Board) means the supplier delivers the goods, cleared for export, on board the vessel at the origin port in China. From that point the cost and risk are yours: ocean freight, destination charges, import clearance, and duty.
Why do 1688 agents quote FOB?
FOB is the cleanest split for sea freight: the China side handles the factory, inland trucking, export paperwork, and loading, and you control the international freight and import. It usually gives better visibility and price than a bundled door-to-door rate.
What is the difference between FOB and EXW?
Under EXW (ex-works), you take over at the factory door and even arrange export clearance and inland China transport. Under FOB, the supplier handles everything up to and including loading on the vessel. FOB removes the China-side hassle that EXW leaves on you.
Does FOB include import duty?
No. Under FOB you are the importer of record, so you pay import duty and VAT/GST. The amount depends on your destination country's official tariff and your product's HS classification — it is never fixed by the Incoterm.
How do I estimate my total cost from an FOB price?
Add ocean/air freight, destination charges, import duty + VAT/GST, and final delivery to the FOB price. Use the shipping and landed-cost tools to estimate each leg before you commit to a 1688 supplier.
Sourcing on FOB terms from 1688?
Send the product, quantity, destination, and supplier terms. Supplymo prepares a before-payment check with the full cost stack after FOB — freight, duty, VAT, and the risks.