EXW vs FAS: who pays what

EXW is Ex Works. FAS is Free Alongside Ship. Incoterms 2020.

The difference that matters

Full cost split

Cost blockEXWFAS
Export clearanceBuyerSeller
Carriage to port / terminalBuyerSeller
Loading onto main carriageBuyerBuyer
Main carriage (freight)BuyerBuyer
InsuranceNeither obligedNeither obliged
Unloading at destinationBuyerBuyer
Import clearanceBuyerBuyer
Duties and import taxesBuyerBuyer
Risk passesWhen the goods are placed at the buyer’s disposal at the seller’s premises — before anything is loaded.When the goods are alongside the ship — quay or barge — not yet on board.
Transport modeAny modeSea / inland waterway

What people get wrong

EXW

The buyer is formally responsible for export clearance in their supplier’s country, which they often cannot legally do. FCA usually fixes this.

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 EXW and FAS?
They split 2 cost blocks differently. export clearance falls to the buyer under EXW and the seller under FAS; carriage to port / terminal falls to the buyer under EXW and the seller under FAS.
Where does risk pass under EXW?
When the goods are placed at the buyer’s disposal at the seller’s premises — before anything is loaded.
Where does risk pass under FAS?
When the goods are alongside the ship — quay or barge — not yet on board.
Can EXW and FAS both be used for container shipments?
EXW 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 EXWCFR vs FASCIF vs EXWCIF vs FASCIP vs EXWCIP vs FASCPT vs EXWCPT vs FAS

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.