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Free on Board (FOB)
Free on Board (FOB) is an Incoterm that specifies the point at which the seller's responsibility for the goods ends and the buyer's responsibility begins. Under FOB terms, the seller is responsible for delivering the goods onto the ship at the designated port of shipment, including all costs and risks up to that point. Once the goods are on board, the buyer assumes responsibility for transportation, insurance, and any subsequent costs.