CIP vs FAS: who pays what

CIP is Carriage and Insurance Paid To. FAS is Free Alongside Ship. Incoterms 2020.

The difference that matters

Full cost split

Cost blockCIPFAS
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 handed to the first carrier — same as CPT.When the goods are alongside the ship — quay or barge — not yet on board.
Transport modeAny modeSea / inland waterway

What people get wrong

CIP

The 2020 revision raised CIP cover above CIF’s. Contracts copied from pre-2020 templates often still assume they match.

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 CIP and FAS?
They split 3 cost blocks differently. loading onto main carriage falls to the seller under CIP and the buyer under FAS; main carriage (freight) falls to the seller under CIP and the buyer under FAS; insurance falls to the seller under CIP and the none under FAS.
Where does risk pass under CIP?
When the goods are handed to the first carrier — same as CPT.
Where does risk pass under FAS?
When the goods are alongside the ship — quay or barge — not yet on board.
Can CIP and FAS both be used for container shipments?
CIP works for any mode of transport. FAS is written for sea and inland waterway transport only.

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 CIPCFR vs FASCIF vs CIPCIF vs FASCIP vs CPTCIP vs DAPCIP vs DDPCIP vs DPU

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.