Maritime and Inland Waterway transport only
This Incoterms® rule is suitable for maritime and inland waterway transport only. In that case, the Seller must deliver the goods alongside the named vessel such as a quay (point of transfer of the risks).
Beyond this point, any potential damage occurring to the goods is under the sole responsibility of the buyer.
Accordingly, the buyer must pay for main and post-carriage costs as well as for terminal handling charges (depending on liner terms).
However, the seller is liable for export custom clearance formalities, if applicable.
Any pre-shipment inspection required by law in the seller’s country, is at the seller’s expense.
In much the same way, the buyer is liable for import customs clearance formalities (taxes and duties, VAT).
Usual Documents required:
Upon request, the seller may assist the Buyer for obtaining any documents needed for the transport and import clearance.
Note that the related costs are at the expense of the buyer.
Make sure that the exact point of delivery in the port of shipment is precisely specified (transfer of risk from seller to buyer).
When should I use the Free Alongside Ship (FAS) Incoterms rule?
Basically, the Free Alongside ship (FAS) Incoterms rule is recommended when the Seller trades produces and raw materials (such as commodities for instance) and where he has an easy access to bulk cargo (dry or liquid).
However for containerised goods, usually handed over to the carrier before the loading aboard the vessel, CFR is not fit for purpose and FCA should be considered instead.