Guide
FOB, CMT and incoterms
The factory delivers the goods on board the ship at its own port. Freight from there is the buyer's cost.
This guide explains the words you will meet on this topic and shows which ATMA lessons teach each step. The definitions are from the ATMA glossary, in English, Arabic, French and Turkish.
Key terms
- FOB (free on board)
- The factory delivers the goods on board the ship at its own port. Freight from there is the buyer's cost. · AR تسليم على ظهر السفينة في ميناء المصنع · FR FOB (franco à bord) · TR FOB (gemide teslim)
- CMT (cut, make and trim)
- The buyer supplies the fabric; the factory is paid only for cutting, sewing and finishing. · AR تشغيل فقط: قص وخياطة على قماش المشتري · FR Façon (CMT) · TR Fason (CMT)
- Full package order
- The factory buys the fabric and trims, makes the garment and sells the finished piece. · AR طلبية كاملة (المصنع يشتري القماش) · FR Commande produit fini · TR Tam paket sipariş
- Incoterm
- A short, standardised international trade term that fixes which costs and risks the seller carries and which ones the buyer carries, at a named point in the shipment. · AR إنكوترمز · FR Incoterm · TR Incoterm
- FOB price
- The price the factory charges for the garment, delivered on board the ship at its own port. · AR سعر التسليم على ظهر السفينة · FR Prix FOB · TR FOB fiyatı
From the course
This page is for a merchandiser or shipping clerk at a garment factory, or a buyer's own merchandiser, who must know which incoterm a quotation or a purchase order is written under, and what that one term actually decides: who pays for freight, who pays for insurance, who pays import duty, and at which exact point the goods become the buyer's own risk. This is chiefly a money-flow skill: reading three letters on a purchase order and knowing, without asking anyone, which costs already sit inside the quoted price and which costs still have to be added. Without this skill…
What you will learn
These ATMA lessons cover the topic, from the basics to building a working document or checklist.
- The main incoterms a merchandiser meets and who pays for what under each oneThis page is for a merchandiser or shipping clerk at a garment factory, or a buyer's own merchandiser, who must know which incoterm a quotation or a purchase order…
- Costing a garment: fabric, trims, making charge, overhead and profitA costing sheet is the document that shows how a garment's price is built, component by component, and it is the tool a merchandiser uses every time a price is…
- Shipment and closing an order: documents, inspection and hand-overA merchandiser follows an order until the tracker's last row is marked Done.
The first lesson of every course is free. No account is needed to read it.
Quick answers
What does “FOB” mean in garment merchandising?
The factory delivers the goods on board the ship at its own port. Freight from there is the buyer's cost.
What does “CMT” mean in garment merchandising?
The buyer supplies the fabric; the factory is paid only for cutting, sewing and finishing.
What does “Full package order” mean in garment merchandising?
The factory buys the fabric and trims, makes the garment and sells the finished piece.