CIF vs FAS: who pays what

CIF is Cost, Insurance and Freight. FAS is Free Alongside Ship. Incoterms 2020.

The difference that matters

Full cost split

Cost blockCIFFAS
Export clearanceSellerSeller
Carriage to port / terminalSellerSeller
Loading onto main carriageSellerBuyer
Main carriage (freight)SellerBuyer
InsuranceSellerNeither obliged
Unloading at destinationBuyerBuyer
Import clearanceBuyerBuyer
Duties and import taxesBuyerBuyer
Risk passesWhen the goods are loaded on board at origin — same as CFR.When the goods are alongside the ship — quay or barge — not yet on board.
Transport modeSea / inland waterwaySea / inland waterway

What people get wrong

CIF

The required cover is the minimum level, not all-risks. Buyers who assume they are fully covered find out at claim time.

FAS

Only sensible for bulk or break-bulk. For containers the goods leave the seller long before the quay, so FCA fits better.

Questions

What is the main difference between CIF and FAS?
They split 3 cost blocks differently. loading onto main carriage falls to the seller under CIF and the buyer under FAS; main carriage (freight) falls to the seller under CIF and the buyer under FAS; insurance falls to the seller under CIF and the none under FAS.
Where does risk pass under CIF?
When the goods are loaded on board at origin — same as CFR.
Where does risk pass under FAS?
When the goods are alongside the ship — quay or barge — not yet on board.
Can CIF and FAS both be used for container shipments?
Both are written for sea and inland waterway transport. For containers, the goods usually leave the seller's control at a terminal rather than at the ship, so a rule for any mode of transport normally fits better.

Whichever term you agree, the paperwork has to say so

The Incoterm and named place belong on the commercial invoice, the packing list and the shipper's instructions — spelled the same way on each. ovrseas generates the set from one entry so they cannot disagree with each other.

Commercial invoice template

Compare other pairs

CFR vs CIFCFR vs FASCIF vs CIPCIF vs CPTCIF vs DAPCIF vs DDPCIF vs DPUCIF vs EXW

Incoterms® is a registered trademark of the International Chamber of Commerce. This page is an independent summary of how costs and risk are allocated and is not affiliated with or endorsed by ICC. For contract drafting, use the official Incoterms® 2020 rules published by ICC.