FAS DELIVERY TERM - FREE ALONGSIDE SHIP


FREE ALONGSIDE SHIP

FAS / Free Alongside Ship

Free Alongside Ship, FAS Delivery term is the less using delivery term in F group of incoterms. FAS is only using in sea shipments, if the main transportation will be provided by vessel.

Free Alongside Ship, FAS

In the form of FAS delivery, the seller, ie the exporter company, arrange the inland transportation via to port. First step, buyer (importer) company arrange the main shipment and give the seller's contact details to freight forwarding company (transporter company) The seller get the main shipment date and container details from forwarder company and get the container from the port or warehouse if they load the goods in their facility. The container carrying by truck from seller's facility to port by truck and its organised by the seller company 

For example, if the delivery term in the contract or in the proforma invoice is specified as "ABC city Port"  The importer (buyer) company organize the seaway shipment and let exporter (seller) known about the shipment date. Buyer (importer) company also responsible to manage the port operation with their carrier company and also responsible for port charges. The main difference between FOB and FAS, inland transportation belongs to buyer (exporter) company.

The exporter company is obliged to complete the container loading in factory and arrange the inland transportation to reach the container to the port. In the same time, exporter company also handle the customs clearence.

FAS, Free Alongside Ship: How to Calculate

In calculating the FAS price, the seller, ie the exporter, adds the profit share on the product's costs and add the  internal transportation cost. In this way the FAS price is determined.

FAS Price Calculation: Product cost + profit share + packaging + loading + internal shipping + customs costs

FAS : How it works

According to the FAS delivery type, the seller (exporter) company is responsible for loading the container in their company facility, carrying the container to port and handle the customs operations. All risks till the container reach to port, belong to the exporter (seller) company.  It is also obliged to carry out customs procedures so customs expense will be paid by seller.

FAS not only using in seaway deliveries. It could be use in also truck & train and airway deliveries. The main point is, buyer mention the delivery point as "FAS...." 
For example The seller company factory plant is in Guangzou, The buyer company want to get the goods at the Guangzou sea port. so the delivery term mentioned on proforma or contracts as: "FAS Guangzou port". Before the goods transport to the airport, the main freight company contact with the seller on behalf of the buyer company and gives the detailed adress. Its better to mention the detailed address on contract as "FAS X city Y portt"

If the main delivery is at any location other than the vendor's premises, for example: at a shipping terminal (railway, airport, port), the seller will be responsible for transporting the goods to the specified address. The unloading operations shall be carried out by the buyer at the transport terminal and the costs also at buyer's side

FAS DELIVERY TERM

Buyer and Seller's Responsibilities as FAS Delivery:

Seller (Exporter) responsibilities FAS delivery Term
  • The seller company responsible for loading goods in container and load the container on truck.
  • The seller company also should manage the inland transportation and carrying the goods to the port or any otherspesific place which is mentioned by buyer company 
  • Customs clearence also handled by the seller company

Buyer (Importer) responsibilities FOB delivery Term
  • The buyer's responsibilities start when container reach to the port
  • Insurance; covering all risks till the goods reach to buyer's facilities
  • The buyer company should handle the shipment costs
  • Customs clearance at destination point (in buyer's contry)
  • Inland transportation from destination port to buyer's facilities

Documents

The seller (exporter) company  should prepare the documents including: invoce, packing list, certificate or origin or any other documents needed to handle the customs clearence in buyer's country. The seller send the document set by courier to buyer company.

FAS Delivery Term:  Responsibilities for Both Side


details FASCostsRisks
PackagingSeller ie exporterSeller ie exporter
Internal shipment (to the harbour)Seller ie exporterSeller ie exporter
Customs clearenceSeller ie exporterSeller ie exporter
Port Loading (handling charges)Buyer ie importerBuyer ie importer
Shipment (main shipment charges)Buyer ie importerBuyer ie importer
InsuranceBuyer ie importerBuyer ie importer
Port Unloading at destination (handling)Buyer ie importerBuyer ie importer
Customs clearence at destinationBuyer ie importerBuyer ie importer
Internal shipment at destination ( (www.ihracat.co)Buyer ie importerBuyer ie importer

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COMMENTS

BLOGGER: 1
  1. Thanks for sharing this article here about the International Freight Shipping. Your article is very informative and I will share it with my other friends as the information is really very useful. Keep sharing your excellent work.

    ReplyDelete

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usatradevisa: FAS DELIVERY TERM - FREE ALONGSIDE SHIP
FAS DELIVERY TERM - FREE ALONGSIDE SHIP
FAS is one of the incoterms created to determine the authorities and responsibilities of exporters and importers. FAS incoterm is described in incoterms 2010 with all the details.
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