Incoterms: Free Alongside Ship (FAS)

What is FAS?

Free Alongside Ship (FAS) is a rule under Incoterms, to regulate international trade and solve problems that arise during the process. Under FAS, the seller is responsible for arranging the purchased goods to be delivered to the correct destination and having them ready for transfer. The goods must be placed next to a vessel at a particular port of departure like a loading dock, and this location cannot be a container terminal. FAS is unsuitable for containerized transport and is used for vessel charters. While the seller does not have to provide insurance, both the buyers and sellers must agree on proof of delivery document. 

Seller and Buyer Obligations

When shipping under FAS, both the seller and the buyer have certain obligations they must abide by. Take a look at the chart below for a general breakdown:

General: 

Seller’s Obligations - Deliver the goods and commercial invoice.

Buyer’s Obligations - Pay the price of the goods as agreed in the contract of sale.

Delivery:

Seller’s Obligations - Bring the goods to the agreed location and date. 

Buyer’s Obligations - Take the goods after they have been delivered. 

Risks:

Seller’s Obligations - Responsible for all of the risks until goods are delivered.

Buyer’s Obligations - Responsible for all of the risks once the seller delivers the goods.

Carriage:

Seller’s Obligations - Not required to make a contract of carriage. 

Buyer’s Obligations - Must contract the carriage unless stated otherwise by the seller.

Insurance:

Seller’s Obligations - No obligation unless the buyer requests.

Buyer’s Obligations - No obligation but can ask the seller for more information.

Delivery/transport document:

Seller’s Obligations - Must provide proof of delivery and a transport document for the buyer.

Buyer’s Obligations - Must accept the proof of delivery.

Export/Import clearance:

Seller’s Obligations - Responsible for all export clearance expenses. Must also assist with import/transit clearances if requested by the buyer.

Buyer’s Obligations - Must assist the seller with export clearance and pay for import clearance and all formalities.

Checking:

Seller’s Obligations - Must pay for all checking operations like weighing/counting the goods, packaging, etc.

Buyer’s Obligations - No obligation.

Allocation of cost:

Seller’s Obligations - Must pay all costs until goods are delivered. Also responsible for charges related to proof of delivery, export clearance, export duties and taxes, etc. Must also pay for all costs that come with helping the buyer obtain certain documents. 

Buyer’s Obligations - Must pay from the time when the goods have been delivered. If the buyer requests the seller for any assistance, the buyer must pay for any costs that may come up during the process. Must pay for any taxes or duties for import clearance and any additional charges caused by the carrier. 

Notices:

Seller’s Obligations - Must notify the buyer when goods have been delivered or if the vessel failed to deliver the goods. 

Buyer’s Obligations - Must notify the seller the vessel’s name and loading point.

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