What does the FAS Incoterm mean?
The FAS Incoterm or “Free Alongside Ship” is exclusive to shipping. Under the FAS Incoterm, the seller must deliver the goods alongside the ship, at the port dock. Under the FAS Incoterm, the seller is responsible for all costs and risks until the goods have been placed at the dock, including the goods being cleared for export. From this point on, the buyer takes over the risks and becomes responsible for the costs and risks of shipping.
This represents a complete change of the Incoterms previous to INCO 2000, where the buyer would have been required to complete customs clearance obligations.
Seller’s obligations under the 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 the FAS Incoterm
- Cost of the goods
- Exit charge
- International freight
- Arrival expenditures
- Customs on arrival
- Inland transport at the destination country
- Payment of fees