Where does risk pass under FAS?

When the goods are alongside the ship — quay or barge — not yet on board.

Who pays the freight under FAS?

The buyer pays the main carriage. The seller pays export clearance, carriage to port / terminal.

Who pays import duties under FAS?

The buyer. Import clearance, duties and taxes are the buyer’s under every rule except DDP.

Can FAS be used for containers or air freight?

FAS is written for sea and inland waterway transport. For containers the goods usually leave the seller at a terminal, so FCA normally fits better; for air it does not apply.

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INCOTERMS®FASIncoterms 2020

FAS: Free Alongside Ship

F-group rule · sea and inland waterway only · Incoterms® 2020

FAS (Free Alongside Ship) means the seller delivers by placing the goods alongside the buyer’s vessel at the named port of shipment, cleared for export. Risk passes there — on the quay or a barge — before loading, which is the buyer’s.

Risk passes: When the goods are alongside the ship — quay or barge — not yet on board.
Main freight: Paid by the buyer
Insurance: Neither side is obliged to insure — agree who does
Customs: Export: Seller · Import: Buyer

Who pays what under FAS

Export clearance	Seller
Carriage to port / terminal	Seller
Loading onto main carriage	Buyer
Main carriage (freight)	Buyer
Insurance	Neither obliged
Unloading at destination	Buyer
Import clearance	Buyer
Duties and import taxes	Buyer

How to write FAS on your documents

The rule is only complete with its named place. The port of shipment, ideally with the berth or loading point.

FAS Ulsan Port, Berth 3, Korea — Incoterms® 2020

Write it the same way on the quotation, the proforma, the commercial invoice and the shipping instructions — a different place on one document is a different deal.

Use FAS when

Bulk or break-bulk cargo (grain, steel, project cargo) loaded by the buyer’s chartered vessel.
The buyer arranges the ship and the loading at the port.

Think twice when

Containers — they are handed over at a terminal days before the ship arrives. Use FCA.
Air, road or rail — FAS is for sea and inland waterway transport only.

What people get wrong about FAS

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

Questions about FAS

What does FAS mean in shipping?: FAS (Free Alongside Ship) means the seller delivers by placing the goods alongside the buyer’s vessel at the named port of shipment, cleared for export. Risk passes there — on the quay or a barge — before loading, which is the buyer’s.
Where does risk pass under FAS?: When the goods are alongside the ship — quay or barge — not yet on board.
Who pays the freight under FAS?: The buyer pays the main carriage. The seller pays export clearance, carriage to port / terminal.
Who pays import duties under FAS?: The buyer. Import clearance, duties and taxes are the buyer’s under every rule except DDP.
Can FAS be used for containers or air freight?: FAS is written for sea and inland waterway transport. For containers the goods usually leave the seller at a terminal, so FCA normally fits better; for air it does not apply.

The documents where FAS is written

Commercial invoice template
Customs and the buyer’s bank read the Incoterm here; it decides which costs belong in the invoice value.
Proforma invoice template
The buyer opens a letter of credit or pays a deposit on these terms — the same rule must follow through.
Quotation template
A price means nothing without its rule: «USD 12.50 FOB Busan» and «USD 12.50 DAP Dallas» are different offers.

Compare FAS with

FAS vs CFR FAS vs CIF FAS vs CIP FAS vs CPT FAS vs DAP FAS vs DDP FAS vs DPU FAS vs EXW FAS vs FCA FAS vs FOB

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.