FAS ( Free Alongside Ship )

Incoterms, also known as international commercial terms, are set to eliminate or decrease confusions and conflicts between buyers and sellers in international trade and to facilitate the trade and commerce process globally. Incoterms were created by the International Chamber of Commerce (ICC) in 1936 and since then, they are updated on a regular basis to suit changing trade trends.
EXWFCACPTCIPDAPDPUDDPFASFOBCFRCIF
Free CarrierCarriage Paid ToCarriage Insurance Paid ToDelivered at PlaceDelivered at Place UnloadedDelivered Duty PaidFree Alongside ShipFree On BoardCost & FreightCost, Insurance & Freight
Charges/FeesEx Works
At a named place, the seller transfers the goods to the buyer; the buyer is responsible for all risks.1.) when seller loads goods to buyer’s carrier or 2.) when goods are at the buyer’s disposal & ready for unloading at a named placedwhen the goods are handed over to the seller’s nominated carrier at a named placewhen the goods are handed over to the seller’s nominated carrier at a named placewhen the goods are placed at the buyer’s disposal at a named place or agreed point within that placewhen the goods are delivered and unloaded at a named place or agreed point within that placewhen the goods are placed at the buyer’s disposal at a named place or agreed point within that placewhen goods are alongside the vessel nominated by the buyer at named portwhen goods are on board the vessel nominated by the buyer at named portwhen the goods are on board the vessel nominated by the seller at originwhen the goods are on board the vessel nominated by the seller at origin
Risks Transfer
Commercial InvoiceSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSeller
Packaging & QCSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerSeller
Loading & DeliveryBuyerSellerSellerSellerSellerSellerSellerSellerSellerSellerSeller
Export Duty & TaxesBuyerSellerSellerSellerSellerSellerSellerSellerSellerSellerSeller
Origin Terminal HandlingBuyerBuyerSellerSellerSellerSellerSellerBuyerSellerSellerSeller
Cargo InsuranceNegotiableNegotiableNegotiableSellerNegotiableNegotiableNegotiableNegotiableNegotiableNegotiableSeller
Carriage ChargesBuyerBuyerSellerSellerSellerSellerSellerBuyerBuyerSellerSeller
Destination Terminal HandlingBuyerBuyerSellerSellerSellerSellerSellerBuyerBuyerBuyerBuyer
Delivery to DestinationBuyerBuyerSellerSellerSellerSellerSellerBuyerBuyerBuyerBuyer
Unloading at DestinationBuyerBuyerBuyerBuyerBuyerSellerBuyerBuyerBuyerBuyerBuyer
Import Duty & TaxesBuyerBuyerBuyerBuyerBuyerBuyerSellerBuyerBuyerBuyerBuyer
Incoterms 2020
FAS

Free alongside ship (FAS) is one of the incoterms that is exclusive to ocean freight. It is used in the worldwide export industry and requires the seller to arrange for goods to be delivered to a specified port and alongside a specific vessel for simpler shipping. The seller must bring the items alongside the ship at the port dock, and is responsible for all expenses and risks until the goods are put on the dock. From this point on, the buyer takes all risks and is liable for all shipping expenses and hazards. According to FAS, The seller is liable for customs handling fees at the country of origin.

FAS (Free alongside ship) is one of a variety of incoterms used by export and import companies across the world.

Seller’s Responsibility Under FAS

  • Goods delivery
  • Preparing all documents required
  • Packaging and marking
  • Transportation in the county of origin
  • Customs handling fees and charges in the country of origin

Buyer’s Responsibility Under FAS

  • Goods payment
  • Charges in the country of origin
  • Charges in the destination country
  • Customs handling fees and charges in the destination country
  • Transportation in the destination country
  • Payment of taxes and customs duties
  • Customs formalities
  • International freight and main carriage

Cargo Insurance in FAS

Under FAS, insurance is not a mandatory necessity. It is normal practice, however, for both the buyer and the seller to get coverage to cover the parts of the cargo’s transportation that they are each responsible for.

As a buyer or seller using the FAS Incoterm, you have the option of accepting responsibility for acquiring cargo insurance for the complete shipping procedure from beginning to end. Make sure to include insurance terms in your sales contract, no matter what you chose.

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