FOB structure
Seller completes agreed export delivery to the named port/airport point; buyer controls onward freight. Verify handover evidence and export completion.
Transaction models
FOB, CIF and refinery routes allocate control differently.
The right model depends on the commodity, origin, buyer capability, refinery acceptance, export route, insurance, banking and who can credibly control each execution step.
FOBCIFRefinery deliveryRisk allocation
Execution framework
Compare the execution models
Incoterms address delivery and risk allocation; they do not by themselves solve title, legality, assay, payment security or regulatory compliance.
CIF structure
Seller arranges freight and insurance to destination. Buyer must verify carrier, insurance, export documents and conditions before relying on the structure.
Refinery route
Product moves to an agreed refinery/processing point where verification and settlement may be linked to received weight and final assay.
Cameroon refinery option
Where legally and commercially available, local refining/processing may reduce transport of high-risk unverified material but still requires buyer/refinery acceptance.
Hybrid control
Escrow, documentary release, secure custody or inspection milestones can be layered onto any model where legally appropriate.
Destination acceptance
The buyer, bank and destination must accept the exact documentary and logistics structure before execution.
Choose the model by control, not by marketing preference.
A seller offering CIF is not automatically safer than FOB, and a refinery route is not automatically safer than direct export. The safest structure is the one where each critical event can be independently evidenced and reconciled.
FOB strength
Buyer controls onward logistics and can define carrier/refinery after verified export handover.
FOB risk
Handover and export completion must be genuine; title/payment timing must be separately defined.
CIF strength
Seller manages freight and insurance, potentially simplifying buyer operations.
CIF risk
Fake logistics documents, weak insurance or unverifiable carriers can create false comfort.
Refinery strength
Assay-linked settlement can connect physical receipt and value determination.
Refinery risk
Refinery appointment, intake rules, fees, settlement terms and ownership during processing must be agreed.
Model selection inputs
01
Commodity and product form
02
Origin/export point
03
Buyer logistics capability
04
Refinery acceptance
05
Assay method
06
Insurance requirements
07
Custody/security plan
08
Bank/payment structure
09
Destination law/customs
10
Title and risk-transfer event
Incoterms should be used in the current ICC form agreed by the parties and interpreted together with the sale contract, payment terms and applicable law.
Control principles
Model-selection rules
INCOTERM ≠ PAYMENT SECURITY
Delivery terms do not replace settlement controls.
REFINERY ≠ AUTOMATIC GUARANTEE
Verify refinery mandate, intake and settlement mechanics.
DOCUMENT THE HANDOVER
Every risk-transfer and release point should have objective evidence.
Need the right execution structure?
Send the proposed origin, destination, commodity, buyer/refinery, Incoterm preference and payment constraints for transaction-model review.
Open a minerals enquiry →