If you feel that the world of Fair Trade has its very own language – do not worry! With this glossary we would like to guide you through the specific technical terms used by FLOCERT, Fairtrade International and the World Fair Trade Organization (WFTO).
Free on board (FOB)
The term free on board means that the seller delivers their part of the contract when the goods pass the ship’s rail at the named port of shipment. This means the buyer has to bear all costs and risks of loss or damage to the goods from that point. FOB requires the seller to clear the goods for export.