FAS – Free Alongside Ship

The meaning of it is that the delivery is completed for the supplier when the product is on the quay for loading on vessel hired by the recipient. FAS is intended only for transporting goods by sea or inland waterway. Supplier pays the export duty, packaging of goods and transportation of cargo to the port, as well as the possible costs of arrival at the port, and provides the relevant documentation. Recipient loads the goods onto the ship, hires and pays the ship, bears all the costs of transporting the goods to the destination, insures the goods, pays import duty, relevant certificates, licenses, etc. FAS is designed to transport goods in bulk or in containers, and also for transportation of heavy equipment.

Who covers the logistics charges?

Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller.

Seller’s Obligations

• Goods, commercial invoice and documentation
• Export packaging and marking
• Export licenses and customs formalities
• Pre-carriage to terminal
• Delivery alongside vessel at port of shipment
• Proof of delivery
• Cost of pre-shipment inspection

Buyer’s Obligations

• Pay the price of the goods as provided in the sales contract
• Loading charges
• Main carriage
• Discharge and onward carriage
• Import formalities and duties
• Cost of pre-shipment inspection (for import clearance)

Botton Line

The FAS Incoterm is a suitable choice for buyers who have the necessary infrastructure to move the goods from the port of departure to its destination, as the seller is not responsible for any additional costs or risks associated with the shipment. This term also implies that the seller is responsible for all export customs formalities, including the payment of export duties and taxes. However, the FAS term is not suitable for goods that require special handling or require special packing, or if the buyer requires the goods to be shipped to a specific destination. In such cases, the CIF or FOB Incoterms should be used instead.