How to Buy Food Packaging Overseas on FOB Terms
What FOB means, who pays for each step, and the US rules to check before ordering container-load packaging from overseas.
Under Incoterms® 2020 FOB (Free On Board), the seller produces the goods, packs them for export, clears export customs and loads them on board the vessel at the port of origin. Risk passes to the buyer once the goods are on board. From that point the buyer pays ocean freight, insurance, US customs entry, duties and delivery to their warehouse.
This is general information, not legal advice
SvartxLab is a packaging supplier. We do not provide legal, customs brokerage, tax or freight forwarding advice. Before ordering, confirm the tariff classification, duties and filings for your shipment with a licensed U.S. customs broker.
Why buyers use FOB
FOB lets the buyer choose their own freight forwarder and control ocean freight, insurance and customs. The seller's price covers the goods up to the moment they are loaded on board, so the quotation is easy to compare between suppliers. It suits buyers that order full container loads or work with a forwarder already.
Who pays for what under FOB
| Step / cost | Paid by (FOB) | What it covers |
|---|---|---|
| Production | Seller | Making the goods to the agreed specification |
| Export packing | Seller | Cartons and packing suitable for ocean transport |
| Transport to the port of origin | Seller | Trucking from the factory to the origin terminal |
| Export customs clearance | Seller | Export declaration and export documents |
| Loading on board | Seller | Goods placed on board the vessel nominated by the buyer — risk transfers here |
| Ocean freight | Buyer | Booked by the buyer or the buyer's freight forwarder |
| Marine insurance | Buyer | Not compulsory under FOB, but recommended |
| US customs entry, duties and fees | Buyer | Filed by the importer of record, usually through a licensed customs broker |
| Port charges and delivery in the US | Buyer | Destination terminal handling and trucking to the buyer's warehouse |
Incoterms® is a registered trademark of the International Chamber of Commerce (ICC).
FOB is meant for sea and inland waterway transport.
How an FOB order with SvartxLab works
- Quantity and specification: minimum 5,000 ProThermo™ bags or 50,000 Calix printed cups (up to 2 sizes, at least 25,000 per size). Tell us the sizes, the print and the destination.
- Quotation: we quote the unit price in USD under FOB terms, the port of loading and the production time for your order.
- Samples: samples are paid and quoted per client.
- Production: production starts once the artwork and the order are confirmed.
- Loading: your freight forwarder books the vessel. We deliver the goods to the port of loading, clear export customs and load them on board.
- Documents: commercial invoice, packing list and bill of lading for your customs broker. Confirm any other document your broker needs when you request the quotation.
US rules to check before you import
- U.S. Customs and Border Protection (CBP): commercial shipments are entered by the importer of record, usually through a licensed customs broker, and formal entries need a customs bond. For ocean cargo, an Importer Security Filing (ISF) must be submitted before the goods are loaded at the foreign port. See the CBP importing and exporting guide.
- Harmonized Tariff Schedule (HTS): the duty rate depends on the classification, which depends on the material and construction of each product. Check current rates in the USITC HTS database and confirm the classification with your broker.
- U.S. Food and Drug Administration (FDA): food-contact materials must comply with the FDA rules in Title 21 of the Code of Federal Regulations or be otherwise authorized. The FDA does not approve or certify individual packaging products, and food facility registration does not apply to food-contact materials. See the FDA food packaging information.
The test reports for our products are on the certificates page.
Container loads
Ocean freight is charged per container, so a full container usually gives the lowest freight cost per unit. How many bags or cups fit in a 20' or 40' container depends on the size mix and the export cartons; we confirm the carton count, weight and volume in each quotation.
Frequently Asked Questions
What does FOB (Free On Board) mean when importing food packaging to the United States?
Under Incoterms® 2020 FOB, the seller is responsible for production, export packing, transport to the port of origin and export customs clearance, and delivers the goods on board the vessel nominated by the buyer. Risk transfers to the buyer once the goods are on board. The buyer pays ocean freight, marine insurance, US import duties and fees, and delivery from the US port.
Does food packaging have to come from an FDA-registered facility?
No. FDA food facility registration applies to facilities that make, process, pack or hold food. Food-contact materials such as cups and bags are excluded from that requirement. What US law requires is that the packaging material complies with the FDA food-contact rules in Title 21 of the Code of Federal Regulations or is otherwise authorized. Some packaging plants register with the FDA voluntarily; registration is not an FDA approval of the product.
How do pre-production samples work under FOB sourcing?
Custom-printed packaging needs printing plates and machine setup before a sample can be made. SvartxLab samples are paid and quoted per client, based on the product, the print and the destination.
How long does an overseas packaging order take?
It depends on the product, the quantity, the print, the factory schedule and the shipping route to your destination port. SvartxLab quotes production time and the port of loading for each order rather than publishing a fixed lead time.
What is the minimum order for SvartxLab products in the US?
5,000 ProThermo™ bags or 50,000 Calix printed cups (up to 2 sizes, minimum 25,000 per size). Prices are quoted in USD under FOB terms.
Request an FOB quotation
Tell us the product, quantity and destination. We reply within 24 business hours and quote the price in USD, the port of loading and the production time for your order.