FAS stands for Free Alongside Ship… (named port of shipment), which means that the seller has fulfilled the obligation to deliver the goods when he delivers them to the shipside (on the dock or in the barge) designated by the buyer at the port of shipment after completing the export customs clearance procedures. All subsequent costs and risks shall be borne by the buyer; when the ship cannot dock, the costs and risks of barging the goods from the dock to the shipside shall still be borne by the seller.
FAS terms apply to water transport.
1. Seller’s obligations
(1) Deliver the goods specified in the contract to the side of the ship designated by the buyer at the time and port of shipment specified in the contract, and notify the other party in a timely manner.
(2) Bear all risks and costs before the goods are delivered to the shipside at the port of shipment.
(3) Obtain official export certificates at your own risk and expense, complete all customs procedures required for the export of goods, and pay export-related taxes and fees.
(4) Submit commercial invoice and delivery note, or electronic record or program certificate with equivalent function.
2. Buyer’s Obligations
(1) Enter into a contract for the transportation of goods from the designated port of shipment, pay the freight, and promptly notify the seller of the name of the ship, the place of loading and the required time of delivery.
(2) Receive the goods and pay the purchase price at the time and place specified in the sales contract.
(3) Bear all risks and expenses incurred after receiving the goods, and handle insurance procedures at its own expense.
(4) Obtain import license or other official import documents at its own risk and expense, and handle customs procedures required for the import of goods.