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FAS (Free Alongside Ship)

is one of the 11 Incoterms defined in the Incoterms 2020, published by the International Chamber of Commerce (ICC). It is an Incoterm that is commonly used in international trade when the buyer and seller are located in different countries and the buyer is responsible for arranging and paying for the transportation of the goods.
Under FAS, the seller is responsible for delivering the goods alongside a vessel at a named port of shipment. The buyer is responsible for the loading of the goods on the vessel, the transportation costs and risks from that point on, including arranging and paying for the transportation, obtaining any necessary export or import licenses and permits, and paying any applicable duties or taxes.

Responsibilities and Obligations of Buyer and Seller

The seller's responsibilities under FAS include:

  • Delivering the goods alongside a vessel at a named port of shipment
  • Loading the goods onto the transport vehicle (if agreed upon)
    • Obtaining any necessary export licenses or permits
The buyer's responsibilities under FAS include:
  • Arranging and paying for the loading of the goods on the vessel
  • Arranging and paying for transportation of the goods
    • Obtaining any necessary import licenses or permits
    • Paying any applicable duties or taxes
    • Bearing the risk of loss or damage to the goods once they are loaded onto the vessel

Advantages of using FAS include:

  • The buyer has more control over the transportation arrangements as they can choose the carrier and mode of transportation
  • The seller is not responsible for loading the goods onto the vessel

Disadvantages of using FAS include:

  • The buyer bears all the risks and costs associated with the transportation of the goods
  • The buyer is also responsible for obtaining any necessary licenses or permits and paying any applicable duties or taxes
  • The buyer is also responsible for arranging and paying for the loading of the goods onto the vessel, which can be a costly and complex process.

Examples of when to use FAS include:

  • When the buyer is located near a port and has the capability to arrange for the loading of the goods onto the vessel
  • When the buyer has established relationships with carriers and can obtain favorable transportation rates
  • When the goods are bulky or heavy and require special handling or equipment to load or unload
  • When the buyer is importing goods into a country with a well-established customs clearance process and minimal import restrictions.
It’s important to note that FAS is a more advanced Incoterm than EXW and FCA and it shifts some of the responsibilities and risks from the seller to the buyer. It’s important for the buyer to carefully consider their capabilities and resources before choosing to use FAS in a trade agreement, and to consult with legal and logistics experts to ensure compliance with laws and regulations. Additionally, it’s important to agree and specify the exact place of delivery and any other relevant details in the sales contract.
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