Full formBusiness & Corporate
FASstands forFree Alongside Ship
Full Form of FAS
What is FAS?
Free Alongside Ship (FAS) is an international trade term, or Incoterm, that defines the seller's obligation to deliver goods alongside the vessel at a named port, typically on a quay or barge. In Indian commerce, FAS is widely used in contracts for export of bulk commodities such as iron ore, coal, or agricultural products. Under FAS, the seller bears all costs and risks until the goods are placed alongside the ship, after which the buyer assumes responsibility for loading, carriage, and insurance. This term is especially relevant for cargo delivered by barge or lighters at ports like Mumbai, Chennai, or Kandla. The buyer also manages customs clearance for export, a notable feature that distinguishes FAS from FOB. Commerce students appearing for Indian CA, CMA, or CS exams are tested on FAS as part of Incoterms 2020. Understanding FAS helps businesses allocate risk and cost appropriately in cross-border transactions, making it a fundamental concept in international logistics and trade law.
FAS का फुल फॉर्म
फ्री अलॉन्गसाइड शिप
Example
The contract specified FAS Nhava Sheva, requiring the seller to place the steel coils alongside the vessel before risk passes to the buyer.
FAS — frequently asked questions
What is the full form of FAS?
The full form of FAS is Free Alongside Ship. It is an Incoterm used in international trade to define the seller's delivery obligation up to the point where goods are placed alongside the vessel at the named port.
What is the difference between FAS and FOB?
Under FAS, the seller delivers goods alongside the ship, while under FOB (Free On Board), the seller must load the goods onto the vessel. Additionally, FAS requires the buyer to clear goods for export, whereas FOB places export clearance on the seller.
Is FAS commonly used in Indian export-import contracts?
Yes, FAS is used in Indian trade, especially for bulk cargo like minerals or grains where goods are lightered onto ships. However, FOB and CIF are more prevalent. FAS is still relevant for specific port operations and is tested in Indian commerce curricula.