Posted in Finance, Accounting and Economics Terms, Total Reads: 342
Definition: Free Alongside (FAS)
FAS is one of the International Commercial terms (Incoterms) published by the International Chamber of Commerce (ICC) and it deals with the transfer of goods between a buyer and a seller as part of international trade through sea or inland waterways.
As per a FAS contract, a seller is required to get the export clearance, transmit the goods and deliver it alongside the buyer’s vessel at the named port of shipment. “Alongside” implies that the goods would be within the reach of the buyer ship’s crane. The risk of loss of goods gets transferred to the buyer from that point onwards.
Usually the charges of transmitting the goods till the named port of shipment are borne by the seller, except for the charges of loading the goods onto the vessel. Any kind of shipping or handling charges, post delivery at the port, are borne by the buyer.