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INCOTERMS5 MIN READ

Fix the "FOB Factory" Clause

Repair a common invalid or misleading FOB-origin clause.

A PO says "FOB Supplier Factory, Incoterms 2020" for goods collected by truck and later consolidated into an ocean container. Everyone knows what they meant until a cargo claim appears. SIPOC process boundary + ICC Incoterms 2020 The common trap is to read the three-letter rule as a full logistics plan. Incoterms allocate selected seller and buyer obligations, but they do not automatically solve customs readiness, payment terms, title transfer, sanctions checks, product conformity, or every document a carrier or bank may require. Before PO line: FOB Seller Warehouse, Incoterms 2020. No port, carrier handoff, export-clearance owner, or container loading…

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