The FAS Incoterm, or “Free Alongside Ship,” is an Incoterm exclusive to ocean freight shipping.
It is important to know that under free alongside ship, the seller must deliver the goods alongside the ship and bear all risks and costs until the goods are placed. Under FAS, the buyer is responsible for the cost of clearing export and unloading. This is an important thing, as under FAS the seller is obliged to pay the customs fees at the place of departure of the goods.
Seller’s obligations under the FAS Incoterm
– Delivery of Goods and Documents Required
– Packaging and Wrapping
– Inland Transport in the Country of Origin
– Customs Handling Fees at the Origin
Buyer’s obligations under the FAS Incoterm
– Payment of Goods
– Origin Charges
– Destination Charges
– Customs Handling Fees at the Destination
– Inland Transport at the Destination Country
– Payment of Duties and Taxes
Free Alongside Ship Insurance Details
While not mandated under FAS, acquiring insurance is a prudent and highly recommended step for both the buyer and seller. It’s a common practice to secure coverage for the portions of the shipment’s journey they are each responsible for. This ensures that any unforeseen circumstances during transit are adequately covered, providing a strong sense of security in an otherwise unpredictable shipping process.
As a buyer or seller operating under the FAS Incoterm, you have the option to take on the responsibility of securing shipment insurance for the entire shipping process. This decision, however, should be clearly communicated and agreed upon in your sales contract. By doing so, you maintain control over the insurance terms, ensuring they align with your specific needs and risk tolerance.
FAS and Container Transportation Details
Insurance is not mandatory under FAS but it’s a wise and recommended step both for the buyer and seller. The practice is to insure the portion of the shipments journey for which each party is responsible. It is a common practice to ensure that the shipment’s journey is adequately covered in case of any unexpected circumstances.
As a buyer, or seller who operates under the FAS Incoterm you can choose to be responsible for shipments insurance during the entire shipping process. It is important to communicate and agree on this decision in your contract. This allows you to maintain control of the insurance terms and ensure they match your specific needs.
