This Incoterm requires the seller to deliver the goods, cleared for export, on board the vessel at the named port of shipment. The seller is responsible for origin costs, including export clearance and freight costs for carriage to the named port of shipment. The risk of loss or damage to the goods is transferred to the buyer when the goods are placed on board the vessel at the port of shipment. The buyer is responsible for loading the goods onto the vessel, and all charges after loading, such as import duty, taxes, customs and on-carriage.

The Incoterms, or International Commercial Terms, is a set of rules issued by the International Chamber of Commerce (ICC) to clarify the responsibilities of exporters and importers in the international trade process. These terms define the obligations of each party in regard to the shipment of goods and transfer of liability at various points in the transaction.