• FREE ALONGSIDE SHIP [... named port of shipment]
  • FREE ALONGSIDE SHIP [... named port of shipment]
This term is to be used only for sea or inland waterway transport.

FAS-Incoterms-2010-VINCULUM- Customs clearance Vladivostok-GK-IMPORT40Factory or warehouse manufacturer or sellerDelivery from the factory or warehouse to the departure terminalPlacement of goods on the cargo terminalPlacing goods on boardState borderSea transportation to the port of dischargeAccommodation at the temporary storage at the port of arrival (unloading)Delivery of goods ready for unloading from the vehicleConsignee WarehouseThe cost zone and the responsibility of the buyer when FASSeller’s cost and responsibility area for FASMoment of risk transfer when FAS!

"Free alongside ship "(" Freely alongside the ship ") means that the seller is considered to have fulfilled its obligation to deliver when product it is located along the side of the vessel nominated by the buyer (i.e., at the berth or barge specified in the contract) at the agreed port of shipment.  Risk loss or damage to the goods passes when the goods are located along the ship’s side, and from that moment the buyer bears all costs. 

Parties are encouraged to most accurately determine the point of loading to the named port of shipment, as the costs and risks up to this point is the seller, and such costs and expenses related to treatment can vary according to the practice of the port.

Delivery terms are applicable for goods transported in bulk and in containers. This can be coal, construction materials, ore, cereals, cereals, etc. When placing goods in containers, it is typical for the seller to hand over the goods to the carrier at the terminal, and not by placing them along the side of the ship. In such situations, it is advisable to use the term  FCA.

FAS requires the seller to perform customs clearance of goods for export.

For deliveries subject to FAS the seller has a better position - it has minimal risks and obligations.

Learn what you need to do when choosing FAS Close the list of actions for FAS
  • to clarify in detail the parameters and characteristics of the packages (including labeling), this is necessary for the subsequent customs clearance of goods;
  • clearly agree with the seller on the place of transfer to a specific berth at a particular port;
  • charter a vessel and notify the seller of which ship to deliver at the appointed time cargo.
  • We agree with insurance companies on insurance conditions, if necessary.
  • pay customs charges for importing goods;
  • to carry out customs clearance of goods;

Of course, this list is not complete and depends on the specific case, but under these conditions of delivery, the logistics of the buyer can prove most powerful and bring additional profit using an intermodal first ship.

 

 

1. General obligations of the seller and the buyer under the conditions FAS

A.1.The seller is obliged, in accordance with the contract of sale, to provide the buyer with the goods, the commercial invoiceinvoice, as well as any other proof of compliance of the goods with the terms of the contract of sale, which may be required under the terms of the contract.
Any document referred to in paragraphs A1-A10 may be replaced by an equivalent electronic record or procedure if agreed by the parties or is common.
V.1. The buyer must pay the price of the goods, as provided for in the contract of sale.
Any document referred to in paragraphs B1-B10 may be an equivalent electronic record or other procedure, if agreed by the parties or is common.

2. Licenses, permits, security control and other formalities under the conditions FAS

A.2.If required, the seller must, at his own expense and risk, an export license or other official authorization and carry out all customs formalities necessary for the export of goods.
V.2.If required, the buyer must obtain at his own expense and risk import license or other official authorization and carry out all customs formalities for the import of goods and its transportation through any country.

3. Transportation and insurance contracts under conditions FAS

A.3.a) Contract of carriage
The seller no duty to the buyer under the contract of carriage. However, at the request of the buyer or if it is commercial practice and the buyer does not give timely instructions to the contrary, the seller may be at the expense and risk of the customer contract for carriage on usual terms. In any case, the seller may refuse to conclude a contract of carriage, without delay, by notifying the buyer.
b) Contract of insurance
The seller no duty to the buyer under a contract of insurance. However, the seller must provide the buyer, at his request, at his risk and expense (if any costs), the information necessary for the buyer of insurance.
V.3.a) Contract of carriage
The buyer shall at his own expense for the carriage of the goods from the named port of shipment, except in cases where the contract of carriage is the seller, as described in paragraph A3 a);
b) Contract of insurance
The buyer has no obligation to the seller to conclude a contract of insurance.

4. Delivery and acceptance of goods under the conditions FAS

A.4.The seller must deliver the goods either by placing alongside the vessel nominated by the buyer at the point of loading, if any, specified by the buyer at the named port of shipment, or by ensuring the provision of such goods supplied. In this and in another case, the seller must deliver the goods on the date or within the agreed period, in accordance with the customs of the port.
If a particular point of loading is not specified by the buyer, the seller may select the named port of shipment and the item that best suits his purpose. When negotiating parties that the delivery will take place within a certain period, the buyer is entitled to select a date within this period.
V.4.The buyer must take delivery of the goods as soon as they have been delivered in accordance with paragraph A4.

5. Risk transfer under conditions FAS

A.5.Seller shall bear all loss or damage to the goods until it is delivered in accordance with paragraph A4, with the exception of the risks of loss or damage in the circumstances referred to in paragraph B5.
V.5.Buyer assumes all risks of loss or damage that may occur from the date of delivery in accordance with paragraph A4.
If:
a) the buyer does not give notice in accordance with paragraph B7 or
b) the vessel nominated by the buyer fails to arrive on time, or do not receive the goods, or shut down before loading time, which has been reported in accordance with paragraph B7;
buyer bears all risks of loss or damage to the goods from the agreed date or the date of expiry of the agreed period, provided that the goods were explicitly individualized as a commodity, which is the subject of the contract.

6. Allocation of expenses under conditions FAS

A.6.The seller must pay:
  • all expenses related to the goods until the time of their delivery in accordance with paragraph А4;
  • if necessary, the cost of the customs formalities to be paid for the export of goods, as well as any duties, taxes and other expenses paid upon export.
V.6.The buyer must pay:
  • all expenses related to the goods from the moment they are delivered, as provided for under A4, except, if necessary, the costs of completing customs formalities for exporting the goods, as well as all taxes, duties and fees payable upon exporting the goods as provided for A6 b);
  • all additional expenses incurred due to:
  • failure by the buyer to give proper notice in accordance with clause B7, or that the vessel nominated by the buyer did not arrive on time, or was unable to accept the goods, or stopped accepting the goods before the time specified in clause B7, provided that the goods were clearly individualized as goods that are the subject of the contract.
  • if necessary, all expenses related to the payment of taxes, duties and other official charges, as well as the fulfillment of customs formalities payable when importing goods, and the costs of transporting it through any country.

7. Buyer and Seller Referral Under Conditions FAS

A.7.The seller must, at the expense and risk of the buyer to give him adequate notice or that the goods have been delivered in accordance with paragraph A4, or that the ship is not taken at the agreed time.
V.7.The buyer must give the seller adequate notice of the vessel name, loading point and, if necessary, of a favorite time of delivery within the agreed period.

8. Documentary proof of delivery under conditions FAS

A.8.Seller shall, at its own expense provide the buyer with the usual proof that the goods have been delivered in accordance with paragraph A4.
If such evidence is not a transport document, the seller shall at the request of the buyer's expense and risk, to assist him in obtaining a transport document.
V.8.The buyer must accept the proof of delivery provided as envisaged in paragraph A8.

9.Checking, packaging, labeling and inspection of goods under conditions FAS

A.9.The seller must pay all costs associated with checking (checking quality, measuring, weighing, counting) which are necessary for the delivery of goods in accordance with paragraph A4, as well as the costs of inspection of goods before shipment, which is prescribed by the authorities of the exporting country.
The seller must, at his own expense, ensure the packing of the goods, unless it is customary in the industry to ship the goods specified in the contract in unpacked packaging. The seller may pack the goods in such a way as is necessary for his transportation, unless the buyer informs the seller about the specific packaging requirements before entering into the contract. Marking packaged goods must be properly implemented.
V.9.The buyer must pay the costs for the mandatory inspection of goods prior to shipment, except when such inspection is carried out by order of the authorities of the exporting country.

10. Assistance in obtaining information and related expenses under conditions FAS

A.10.If need be, the seller is obliged to provide the purchaser or to assist him in obtaining, at the request of the buyer, at his risk and expense, documents and information, including safety information, which may require the purchaser to import goods and / or transportation to the final destination.
The seller is obliged to compensate the buyer for all costs and charges incurred by the buyer in obtaining or providing assistance in obtaining documents and information as provided for in paragraph B10.
V.10.The buyer must notify the seller in a timely manner the requirements with regard to safety information, so that the seller could act in accordance with paragraph A10.
The buyer must reimburse the seller incurred by him costs and charges for providing or rendering assistance in obtaining documents and information as provided for in paragraph A10.
If required, the buyer is obliged to provide the seller or facilitate in the seller receiving, at the request of the seller, at his risk and expense, documents and information, including important safety information, which may require the seller to transport, export of goods and for their transport through any country.
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