FOB Incoterm for olive oil: the standard for a first export

Q: When to choose FOB?

Buyer side (importer) — Choose FOB if you have a reliable freight forwarder and agent : you negotiate your own freight and insurance yourself, often at the best total cost. It is the incoterm that gives you the most control over the transport part. Seller side (exporter) — FOB is ideal for a first customer or a risky market : your exposur

Q: What does FOB mean for olive oil?

FOB (Free On Board) means that the seller delivers the oil loaded on board the vessel at the port of departure (Radès or Sfax). As soon as it is loaded on board, costs and risks pass to the buyer, who organizes transport and insurance.

Q: Where does risk transfer occur under FOB?

At loading on board the vessel at the port of departure. After this point, the buyer bears the risk, even if they have already paid part of the costs.

Q: Who pays the sea freight under FOB?

The buyer . Under FOB, the seller stops at loading on board; the main sea freight and insurance are the importer's responsibility.

Q: Who pays clearance under FOB?

The seller handles the Tunisian export clearance ; the buyer handles the import clearance (duties, VAT) in their country.

Q: Is insurance needed under FOB?

Neither party is contractually obliged, but the buyer has every interest in insuring : their risk begins at loading on board. Never assume that insurance is included under FOB.

Q: Why is FOB recommended for a first export?

Because it limits the seller's exposure to the port of departure and offers a clear and balanced framework. It is the standard of the bulk olive oil sector.

Q: Do I need to specify the port under FOB?

Yes, always. A "FOB" alone is ambiguous: write " FOB Radès " or " FOB Sfax ", specifying the Incoterms® version (2020).

In brief

FOB (Free On Board), in Incoterms® 2020, means that the seller delivers the goods loaded on board the vessel at the agreed port of departure (for example FOB Radès or FOB Sfax). From loading on board, costs and risks pass to the buyer, who organizes and pays for the main sea transport, insurance and import clearance. FOB is used only for sea or inland waterway transport. It is the standard incoterm for a first export of bulk Tunisian olive oil: balanced, clear, it limits the seller's exposure while leaving the buyer in control of their freight.

What does FOB mean for olive oil?

Under FOB, the seller (the Tunisian exporter) takes charge of the entire chain until the oil is on board the vessel at the port of loading: factory-to-port (inland) haulage, port formalities and export fees, export clearance, loading on board. Once the goods are loaded, the baton is passed.

The buyer (the importer) then takes charge of: the sea freight, the transport insurance, the import clearance (duties, VAT), and final delivery to their warehouse.

FOB is used only for transport by sea — which is the case for bulk olive oil exported in flexitank, IBC or drums out of Radès or Sfax. For containerized transport handed over to a terminal before loading, the technically appropriate incoterm is FCA, but FOB remains the dominant and accepted practice in the sector.

Cost / risk transfer under FOB

Item	Borne by…	Tipping point
Factory → port (inland) haulage	Seller	—
Export formalities and fees (ONH, port)	Seller	—
Tunisian export clearance	Seller	—
Loading on board the vessel	Seller	—
Transfer of risk	Passes to the buyer	Loading on board at the port of departure
Main sea freight	Buyer	—
Transport insurance	Buyer	—
Import clearance (duties + VAT)	Buyer	—
Final delivery to destination	Buyer	—

The risk transfer under FOB occurs at loading on board, even if the buyer pays the freight. This is a frequent and costly confusion: the seller is no longer responsible for the goods once they are loaded. Compare the real cost with the export cost calculator.

Key insurance point: under FOB, neither party has a contractual obligation to insure the goods. The buyer, whose risk begins at loading on board, has every interest in taking out their own transport insurance.

Documents required under FOB

Whatever the incoterm, the basic customs documents remain necessary. Under FOB, the seller typically provides:

Commercial invoice and packing list
Bill of lading (B/L) — "shipped on board"
EUR.1 certificate of origin (essential for the 0% duty within the EU quota)
Certificate of analysis (COA) from an IOC-accredited laboratory (Tunisian ONH requirement)
Phytosanitary / sanitary certificate depending on the market

The buyer manages the documents and costs related to import (customs declaration, payment of duties and VAT). See the export documentation.

When to choose FOB?

Buyer side (importer) — Choose FOB if you have a reliable freight forwarder and agent: you negotiate your own freight and insurance yourself, often at the best total cost. It is the incoterm that gives you the most control over the transport part.

Seller side (exporter) — FOB is ideal for a first customer or a risky market: your exposure stops at the port of departure. You bear neither the freight, nor the import clearance, nor the taxation of a country you do not master.

Drafting rule: a FOB is worth nothing without its reference port. Always write "FOB Radès (Incoterms® 2020)".

FAQ — FOB Incoterm olive oil

What does FOB mean for olive oil?

FOB (Free On Board) means that the seller delivers the oil loaded on board the vessel at the port of departure (Radès or Sfax). As soon as it is loaded on board, costs and risks pass to the buyer, who organizes transport and insurance.

Where does risk transfer occur under FOB?

At loading on board the vessel at the port of departure. After this point, the buyer bears the risk, even if they have already paid part of the costs.

Who pays the sea freight under FOB?

The buyer. Under FOB, the seller stops at loading on board; the main sea freight and insurance are the importer's responsibility.

Who pays clearance under FOB?

The seller handles the Tunisian export clearance; the buyer handles the import clearance (duties, VAT) in their country.

Is insurance needed under FOB?

Neither party is contractually obliged, but the buyer has every interest in insuring: their risk begins at loading on board. Never assume that insurance is included under FOB.

FOB or CIF: which to choose?

FOB if you (the buyer) want to negotiate your freight and insurance and keep control. CIF if you prefer a "delivered-to-port" price where the seller organizes freight and insurance.

Why is FOB recommended for a first export?

Because it limits the seller's exposure to the port of departure and offers a clear and balanced framework. It is the standard of the bulk olive oil sector.

Do I need to specify the port under FOB?

Yes, always. A "FOB" alone is ambiguous: write "FOB Radès" or "FOB Sfax", specifying the Incoterms® version (2020).

Does FOB apply to road or air transport?

No. FOB is reserved for sea or inland waterway transport. For other modes or a container handed over to a terminal, the appropriate incoterm is FCA, even if FOB remains common practice in bulk.

What documents does the seller provide under FOB?

Commercial invoice, packing list, bill of lading (B/L) marked "shipped on board", EUR.1 certificate of origin, COA from an IOC-accredited lab, and phyto/sanitary certificates depending on the market.

What is the price of Tunisian olive oil under FOB?

The bulk price at origin starts at around €3.80/kg FOB, depending on the variety, volume, crop year and format. Request a dated quotation.

How do I calculate my total cost from a FOB price?

Add to the FOB price: the sea freight, insurance, then customs duties, VAT and destination fees. Use the export cost calculator to compare FOB and CIF delivered.

Request your FOB quotation

Do you want to control your freight and insurance? We quote FOB Radès (or Sfax), with a COA per lot and complete export documents.

Request a free quote — dated "FOB Radès" quotation, drawer pre-filled "Incoterm FOB".

Undecided between incoterms? Compare FOB, CIF, EXW and DDP on the incoterms guide, or use the incoterm selector.

July 2026 data, indicative and to be re-verified before any commitment. Sources: Incoterms® 2020 (international rules), IOC/T.15/NC trade standard, EU regulation.