FAS is the acronym of Free Alongside Ship. Like FOB, FAS is an incoterm that is applied only to the mode of transportation where water bodies are involved. In simple words, FOB exclusively applies to the shipping mode of transport. Under this incoterm the seller must deliver the goods along with the ship at the port.
In this incoterm the seller is responsible for the goods until it has placed on the dock and cleared for export. From that point on the buyer comes under the obligation to manage the risks and to be responsible for the costs and risks of shipping the document to its destination.
Unlike FOB the FAS has simpler obligations for the seller. Some of them are to look for the delivery of the goods and the necessary documents, packaging and wrapping of the goods same as in FOB and to get the customs clearance at the origin. Also like in FOB FAS also obliges the seller to take care of any inland transportation in the country of the origin. With this the seller’s obligations come to an end under the incoterm FAS.
Now let’s go through the buyer’s obligations under this incoterm. The buyer is responsible for the costs of goods and their exit charge. The buyer must also take care of the insurance of the goods and the international freight of the respective goods. Then there are the arrival expenditures that need to be managed by the buyer. The buyer must also get a customs clearance at arrival and any kind of inland transportation involved at the destination country. Mostly, these are the same as the obligations under FOB
So FAS and FOB are two incoterms that cover the mode of transportation for water bodies.
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