FAS : Free Alongside Ship

EXW |  FCA |  FAS |  FOB |  CFR |  CIF |  CPT |  CIP |  DAF |  DES |  DEQ |  DDU |  DDP




Free Alongside Ship (...named port of shipment)

In Free Alongside Ship, the seller/exporter/manufacturer clears the goods for export and then places them alongside the vessel at the "named port of shipment." [The seller's clearing the goods for export is new to Incoterms 2000.]

The parties to the transaction, however, may stipulate in their contract of sale that the buyer will clear the goods for export.

The Free Alongside Ship term is used only for ocean or inland waterway transport.

The "named place" in Free Alongside Ship and all "F" terms is domestic to the seller.

The Free Alongside Ship term is commonly used in the sale of bulk commodity cargo such as oil, grains, and ore.

Normal payment terms for Free Carrier transactions are generally cash in advance and open account, but letters of credit are also used.

Examples
FAS Free Alongside Ship Port Elizabeth South Africa
FAS Free Alongside Ship Le Havre France

Incoterm Category
FAS is an "F" Incoterm where the seller/exporter delivers the goods, non-export cleared, alongside a ship, and does not bear risk or costs once the goods have been handed over.

Modes of Transport Covered
Used only for ocean or inland waterway transport.

Seller's Responsibilities (summary)

  1. Goods - Provide the goods, commercial invoice or electronic message, and other documentation as required by the sales contract.
  2. Licenses and Customs Formalities - Obtain at own risk and cost any export licenses and authorizations and carry out all export formalities and procedures.
  3. Carriage and Insurance - The seller has no obligation to the buyer to provide carriage of goods or insurance.
  4. Delivery - Deliver the goods on the quay alongside the named vessel at the named place and at the time stipulated in the sales contract.
  5. Risk Transfer - Assume all risks of loss or damage to the goods until they have been delivered to the port at the named place and time as provided in the sales contract.
  6. Costs - Pay all costs until the goods have been delivered alongside the named vessel and all costs related to export formalities.
  7. Notice to the Buyer - Provide sufficient notice to the buyer that the goods have been delivered alongside the named vessel.
  8. Proof of Delivery, Transport Documents - Provide the buyer with a proof of delivery (to the carrier) or a transport document, or to assist the buyer in obtaining a transport document.
  9. Checking, Packing, Marking - Pay all costs associated with checking the quality and quantity of the goods to be in conformity with the sales contract. Provide appropriate packing (unless the goods are traditionally delivered unpackaged) as required for the transport of the goods, to the extent that the buyer has made transport circumstances known to the seller prior to the execution of the sales contract. Provide marking appropriate to the packaging.
  10. Other - Provide the buyer at the buyer's request, risk and expense any and all assistance in securing documentation originating in the country of export or of origin required for import and transshipment through another country. Provide the buyer at the buyer's request information necessary to obtain insurance.

Buyer's Responsibilities (summary)

  1. Payment - Pay for the goods as provided in the sales contract.
  2. Licenses and Customs Formalities - Obtain at own risk and cost any import licenses and authorizations and carry out all import formalities.
  3. Carriage and Insurance - Provide for contract of carriage from the named port of shipment. No obligation for insurance.
  4. Taking Delivery - Take delivery of the goods as provided in the sales contract.
  5. Risk Transfer - Assume all risk of loss or damage from the time the goods have been delivered alongside the ship as provided in the sales contract.
  6. Costs - Pay all costs for carriage and insurance from the time the goods have been delivered alongside the vessel in accordance with the terms of the sales contract. Pay all costs resulting from failure of the named ship to arrive on time or to be able to take the goods. Pay all costs relating import formalities including duties, taxes and other charges including transshipment.
  7. Notice to Seller - Give sufficient notice to the seller of the name of the vessel, the time or period for delivery and the place of delivery.
  8. Proof of Delivery, Transport Document - Accept the seller's proof of delivery or transport document.
  9. Inspection(s) - Pay for the costs of pre-shipment inspection except inspections required by the country of export.
  10. Other - Pay all costs associated with securing documentation originating in the country of origin or export as required for import formalities. Reimburse seller for seller's costs in providing such documentation or assistance. Also, to give the seller instructions regarding contract for carriage.
View details of other Incoterms

EXW |  FCA |  FAS |  FOB |  CFR |  CIF |  CPT |  CIP |  DAF |  DES |  DEQ |  DDU |  DDP

© World Trade Press. Reproduced with permission.