What does FOB (Free On Board) mean?

FOB (Free On Board) is an Incoterm used in international trade. FOB is one of the three Incoterms commonly used in Timor-Leste, and means, “When shipping on FOB terms the seller is responsible for all origin charges. This includes loading onto the named vessel. The risks and costs are then transferred to the buyer. The buyer is then responsible for the freight, any insurance required and all charges to final destination.”