f.o.b.

Abbreviation for free-on-board, used in commerce to describe an export contract where the goods being shipped remain at the seller's risk until they cross the ship's rail at the docks. The term is also used to describe the value of the goods at the point of embarkation, excluding the transport and insurance costs paid for by the seller. Export values are usually expressed f.o.b. for customs and excise purposes, while imports are usually valued c.i.f.. If the goods are being sent by rail the term f.o.r. (free-on-rail) applies.