| Cost responsibility | Seller pays to port of origin | Seller pays freight + insurance to destination port | Seller pays everything to buyer's door |
| Risk transfer point | When goods are loaded onto vessel at origin port | When goods are loaded onto vessel at origin port | When goods are delivered to buyer's named place |
| Insurance | Buyer arranges own insurance | Seller provides minimum insurance (110% invoice value) | Seller bears all risk; insurance is seller's decision |
| Customs clearance (export) | Seller handles export clearance | Seller handles export clearance | Seller handles export clearance |
| Customs clearance (import) | Buyer handles import clearance + duties | Buyer handles import clearance + duties | Seller handles import clearance + duties |
| Freight booking | Buyer books freight | Seller books freight | Seller books freight and last-mile delivery |
| Documentation needed by buyer | Bill of Lading, Commercial Invoice, Packing List, Import License | Same as FOB — seller provides B/L + insurance cert | Minimal — seller handles most documentation |
| Best for | Experienced importers with freight forwarders | Buyers who want door-to-port convenience | First-time importers or buyers wanting zero logistics work |