FAS – Free Alongside Ship (Port of Shipment) - Incoterms 2020

Explained

In FAS the seller clears the goods for export and delivers them alongside side the vessel nominated by the buyer at port of origin. This means that the seller is responsible for all costs and risks to the goods up to point of delivery. This term applies only for ocean or inland waterway ports. If the goods are handed to the carrier in a container terminal, FCA is a more appropriate term.

Doing Business

The seller must deliver goods next to the vessel with export customs clearance paperwork completed. FAS is commonly used for out of gauge (OOG) cargo, which is cargo that cannot fit into internal container dimensions (i.e boats, tractors). FAS can only be used for ocean cargo and loading cost into vessel must be under sellers account.

Because of restricted times available on wharf, time and location are extremely important when negotiating under FAS. This term is also common when buying liquids and ships must deploy hoses for transfer goods (i.e. chemicals).

It is recommended to use this term with the precise location in the port, especially in large ports with multiple locations. FAS term is frequently used in the term of sale of bulk commodities like grains or oil. In case the cargo is containerized, it is common to deliver the goods at the carrier container yard or terminal (FCA term will fit best in this case).

Examples

Buying a boat with pick up on 10th March before noon - Incoterms® 2020

FAS - Pier 10 Port of Miami Florida - Incoterms® 2020

Buying a machine to corrugated boxes in different sets and parts, non-containerised:

FAS - Bremen Pier 2 - Incoterms® 2020

Seller and Buyer obligations

THE SELLER’S OBLIGATIONS	THE BUYER’S OBLIGATIONS
1. General The seller must deliver the goods, commercial invoice, and evidence of conformity.	1. General The buyer must pay the price of goods as agreed.
2. Delivery Deliver the goods at the agreed point alongside the vessel nominated by the buyer, in the agreed date or period. If no time is notified, when goods have been loaded or placed at the disposal of the carrier	2. Taking Delivery The buyer takes the goods after delivered.
3. Risks All risk of loss/damage until goods have been delivered	3. Risks All risk of loss/damage from the time or end of the period agreed for delivery. If the buyer fails to nominate a carrier, or if the carrier doesn’t arrive, the risk is under the buyer.
4. Carriage No obligation to make a contract of carriage. Provide at buyers risk and cost, information for arranging carriage. If agreed, the seller must contract the carrier.	4. Carriage Contract the carriage from the place of delivery unless agreed the seller will contract the carrier.
5. Insurance No obligation. Provide at buyers risk and cost, any required information.	5. Insurance No obligation to insure the goods.
6. Delivery/transport document Proof of delivery at sellers cost and a transport document if arranged by seller	6. Delivery/transport document Accepts the proof of delivery
7. Export/Import clearance All export clearance expenses (license, security, inspection, etc). Assist with import clearance	7. Export/Import clearance Assist with export clearance. Pay for import clearance and formalities (licenses, security, official documentation).
8. Checking The seller must check, count, weight, mark, and package goods	8. Checking No obligation.
9. Allocation of cost Pay all the cost until delivery. Cost of proof of delivery. Duties and taxes for export. All costs related to providing assistance in obtaining documents to the buyer	9. Allocation of cost Pay from the time goods delivered. All costs for assistance on get carriage, insurance, delivery, and customs documentation. Pay duties and taxes for import or transit. Any additional cost if the carrier is not nominated or carrier fails to collect goods.
10. Notices Give notice that goods have been delivered or the vessel failed to collect the goods.	10. Notices Notify the vessel name, loading point and time or period.

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