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Free On Board
In maritime international commerce, an agreement between a seller and a buyer indicating that the seller has fulfilled his/her obligation to deliver a good when he/she has transferred it to the ship on which it will be transported. All cost and risk transfers to the buyer when the good crosses the ship's rail. The buyer designates the ship onto which the seller must deliver the good. See also: United Nations Convention on Contracts for the International Sale of Goods, Incoterm.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
f.o.b.abbrev. for free-onboard. In BALANCE OF PAYMENTS terms, f.o.b. means that only the basic prices of imports and exports of goods (plus loading charges) are counted while the ‘cost-insurance-freight’ (c.i.f.) charges incurred in transporting the goods from one country to another are excluded.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005