The term Free Alongside Ship (FAS) is used in business to refer to the buying and selling of goods that will be transported by sea or inland waterway. Under this term, the seller is responsible for clearing the goods for export and delivering them to the wharf next to the buyer’s selected vessel. Once the goods are placed on the wharf, the seller’s delivery is considered complete, and the buyer assumes the risk of loss. The buyer is also responsible for all transportation costs.
The term “Free alongside ship” (FAS) is used in mercantile contracts to outline the rights and obligations of both the buyer and seller of goods. In an FAS agreement, the seller is responsible for clearing the goods for export and delivering them to the wharf next to the buyer’s selected vessel. The buyer bears the costs of transportation, and the seller’s delivery is considered complete once the goods are placed on the wharf. This term is applicable only when goods are transported by sea or inland waterway. For instance, if a Chinese company sells 1000 units of a product to a US company with an FAS delivery term, the Chinese company is accountable for clearing the goods for export and delivering them to the wharf next to the US company’s chosen vessel. Once the goods are on the wharf, the US company assumes responsibility for all transportation costs and any potential loss. In summary, the FAS term in this example signifies that the Chinese company is responsible for delivering the goods to the wharf, and the US company takes on the costs of transportation and any risk of loss thereafter. Consequently, if the goods are damaged or lost during transportation from the wharf to their final destination, the US company is liable for any resulting losses.
FAS is a trade term used in international shipping contracts, indicating that the seller is responsible for delivering the goods alongside the vessel at the named port of shipment. The buyer assumes responsibility for the goods once they are placed alongside the ship.
The seller must ensure that the goods are delivered alongside the ship at the agreed-upon port of shipment, cleared for export, and ready for loading. They are responsible for all costs and risks until the goods are placed alongside the ship.
The buyer is responsible for arranging the main carriage of the goods, including the costs and risks associated with transportation from the port of shipment to the final destination. They must also handle import clearance and any applicable taxes or duties.
No, under FAS, the seller is only responsible for delivering the goods alongside the ship. The buyer is responsible for loading the goods onto the vessel.
The risk of loss or damage to the goods transfers from the seller to the buyer once the goods are placed alongside the ship. Therefore, the buyer assumes the risk from that point onwards.
Yes, the buyer has the freedom to select the carrier and determine the route of transportation from the port of shipment to the final destination. This allows the buyer to have control over the costs and efficiency of the transportation process.
If the seller fails to deliver the goods alongside the ship at the agreed-upon port of shipment, they may be in breach of the contract. The buyer may have legal remedies available, such as seeking damages or termination of the contract.
The seller must provide the buyer with the usual commercial invoice, packing list, and any other documents required for export clearance. Additionally, they must provide the buyer with a bill of lading or an equivalent document that proves the goods have been delivered alongside the ship.
Yes, the buyer has the right to inspect the goods before they are loaded onto the vessel. This allows them to ensure that the goods meet the agreed-upon specifications and are in satisfactory condition.
Yes, FAS can be used for any type of goods that are suitable for transportation by sea. However, it is important to consider the nature of the goods and their specific requirements when choosing the appropriate trade term.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 16th April 2024.
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