Incoterms 2020 · Sea and inland waterway
FAS (Free Alongside Ship): who pays what
The short answer
Who pays what under FAS
| Step | Under FAS |
|---|---|
| Export clearance | Seller |
| Main freight | Buyer |
| Cargo insurance | Buyer (not required) |
| US customs clearance | Buyer |
| US import duty and fees | Buyer |
| Unloading at destination | Buyer |
| Risk passes to the buyer | Alongside the buyer's vessel at the port of loading |
In the contract, FAS is followed by the port of loading: for example "FAS Qingdao, Incoterms 2020".
What FAS means for a US importer
FAS is for bulk and breakbulk cargo: heavy machinery, steel, project cargo, grain. It is not meant for containers, which are handed over at a terminal, not alongside the ship.
FAS is one of the four rules for sea and inland waterway transport only.
US customs value under FAS
An FAS price carries no ocean freight, so it is usually the starting point for the US dutiable value.
Check the duty for your product in the Gateway tariff calculator.
Watch out for
- For containerized goods, use FCA instead.
FAS questions
What is the difference between FAS and FOB?
Under FAS the seller delivers the goods alongside the ship; under FOB the seller delivers them on board. Loading is the buyer's cost and risk under FAS.
Can FAS be used for container shipments?
It should not be. Containers are handed to the carrier at a terminal, so FCA fits them; FAS is for cargo delivered to the ship's side.
Sources
- International Chamber of Commerce: Incoterms 2020
- International Trade Administration (trade.gov): Know Your Incoterms
- 19 U.S.C. 1401a(b)(4)(A): price actually paid or payable
Incoterms® is a registered trademark of the International Chamber of Commerce. This page explains the rule in our own words; the ICC publication is the authoritative text.