FOB
Acronym for: Free On Board
Incoterm where the seller delivers goods on board the vessel at the port of origin; buyer pays freight and insurance.
Detailed Explanation
FOB (Free On Board) is the most common Incoterm for solar module imports from China. The seller handles everything up to loading on the vessel at the origin port (e.g. Shanghai, Ningbo, Shenzhen). From that point, the buyer is responsible for ocean freight, cargo insurance, destination port handling, customs clearance, and local delivery. FOB shifts more work to the buyer but saves 5-10% vs CIF. Experienced importers with their own freight forwarder relationships typically use FOB. See also CIF, DDP.
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Related Terms
Incoterm where the seller pays cost, insurance and freight to the destination port; buyer handles customs clearance.
Incoterm where the seller handles all costs including duty, VAT, and final delivery; buyer does nothing.
Minimum quantity required to place an order; typically one 40HQ container (~430-460 kW) for Tier-1 factories.
OEM = factory makes your branded product; ODM = factory designs and builds based on your spec.
Bank-issued payment guarantee commonly used in international trade to protect both buyer and seller.