What is the meaning of FAS incoterm?
The Incoterm FAS (Free Alongside Ship) is specifically designed for ocean freight shipping.
Under FAS, the seller is obliged to deliver the goods alongside the ship at the port dock and bears all associated costs and risks until the goods are placed at the dock. Once the goods are at the dock, the buyer assumes responsibility for the costs and risks of shipping.
When using FAS, the seller is responsible for customs handling fees at the origin. This differs from the previous version of Incoterms, Incoterms 2000, where the buyer was responsible for fulfilling customs clearance obligations at the origin.
Here are the obligations of both the seller and the buyer under the FAS Incoterm:
Seller’s Responsibilities under FAS:
- Delivery of goods and necessary documents
- Packaging and wrapping
- Inland transport within the country of origin
- Payment of customs handling fees at the origin
Buyer’s Responsibilities under FAS:
- Payment for the goods
- Origin charges
- International freight
- Destination charges
- Customs handling fees at the destination
- Inland transport within the destination country
- Payment of duties and taxes
2-second definition
In the Incoterms guidelines for FAS (Free Alongside Ship), the seller is tasked with clearing the goods for export and positioning them alongside the vessel at the designated port of departure, which could be a loading dock or a barge, but not a container terminal.
The buyer bears responsibility for loading the cargo onto the vessel and managing local carriage, discharge, import procedures, duties, and onward carriage to the final destination.
FAS specifically pertains to transportation via ocean or inland waterways and is commonly utilized for bulk cargo like oil or grain.
For shipments of containerized goods destined solely for a terminal, FCA (Free Carrier) should be used instead. Under FCA, the seller covers all expenses until the freight is on the vessel, after which the buyer assumes responsibility.