FAS INCOTERM (Free Alongside Ship)

Using FAS incoterm

FAS or “Free Alongside Ship” Incoterm is exclusive to shipping. FAS states that the seller must deliver the goods alongside the ship, at the port dock. Under FAS Incoterm, the seller is responsible for the cost and risk until the goods have been placed at the dock, including the goods being cleared for export. From this point on the buyer becomes responsible for the cost and risk of shipping.

This represents a complete change of the Incoterms previous to INCO 2000 where the buyer would have been required to complete the customs clearance obligations.

Seller’s obligations under FAS Incoterm

  • Delivery of goods and documents required
  • Packaging and wrapping
  • Inland transport in the country of origin
  • Customs at origin

Buyer’s obligations under FAS Incoterm

  • Cost of the goods
  • Exit charge
  • International freight
  • Insurance
  • Arrival expenditures
  • Customs on arrival
  • Inland transport at the destination country
  • Payment of fees

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