Who will pay for the bill of lading under FOB in INCOTERMS 2020? (2024)

Article A6 under FOB in Incoterms 2020 mentions that: “The seller must provide buyer, at the seller’s cost, with the usual proof that the goods have been delivered in accordance with A2”. It further says : “ Unless such proof is a transport document, the seller must provide assistance to the buyer, at the buyer’s request, risk and cost, in obtaining a transport document”.

Based on what mentioned above , we can conclude that , on occasions like particular kinds of trade, in specific ports or practices with shipping companies or agreement between parties, usual proof of delivery can be the transport document (mostly , an onboard bill of lading) and the seller is supposed to pay for it. When the usual proof of delivery is a receipt, then buyer is responsible for paying the cost for bill of lading.

At the same time, A4 provides that : “ If agreed, the seller must contract for carriage on the usual terms at the buyer’s risk and cost” . In this case, ICC suggests that reference to costs only include the cost of freight and seller is responsible for cost of the bill of lading which plays the role of proof of delivery in this situation.