FAS | Free Alongside Ship
FAS (named place) INCOTERMS 2020
FAS means the goods are delivered and the risk is transferred from the seller to the buyer when:
- The goods are placed onboard the ship,
- Which is nominated by the buyer,
- At the named place (port or berth).
In this rule, the location at which the risk is transferred from the buyer to the seller and also the location up to which the seller is responsible to arrange and pay for transportation costs are the same, which is on board the ship, nominated by the buyer, at the named place.
What you really need to watch for:
- This rule is only used for ocean freight or shipment through international waterways.
- FAS is not suitable for when the goods are handed over to the transport service provider before placement of the goods alongside the ship. In such cases, FCA should be used.
- It is important the both parties agree on the exact port and berth location within the named place as precisely as possible as this exact location is where the risk is transferred from the seller to the buyer and also the location up to which the seller has to pay for the transportation charges.
- The seller is responsible to clear the goods for export from the country of origin, but the seller is not responsible to do anything on the transit of the goods through the countries the shipment moves through or import clearance of the goods in the country of destination.
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