12 strengths for an exporter under FAS terms of delivery

Advantages of FAS for Buyer under Incoterms 2020

How does FAS terms benefit for importer under Inco terms 2020? 

The following are the 12 advantages for buyer under FAS delivery terms:


01. One of the benefits for importer under FAS terms is that; comparatively with most of the delivery rules to move goods from exporter’s place to importer’s place, the risks of buyer are higher thereby the buyer keeps more profit margins against the export sales under FAS delivery terms.


02. Another advantage for buyer under FAS delivery terms is that the importer undertakes main carriage, import clearance, import government rules and regulations under FAS, the buyer strengthens his experience in such areas which can be utilized for similar transactions with same supplier or with different sellers; naturally strengthens the importer’s volume of business.


03. The FAS delivery rules allows the buyer to  hold complete control over main carriage, contracting sea freight with shipping carriers thereby ultimate strength to negotiate ocean freight  and services posses by the importer. This is a merit for seller under FAS terms of delivery.

04. One of the other advantages for exporter under FCA terms is that the government rules and regulations of pre carriage need not be known for an importer under FAS terms of delivery as those responsibilities are undertaken by the seller.

05.Under FAS, the buyer need not worry about export customs clearance process at exporter’s country, export documentation, export taxes if any. This is an advantage for exporter under FAS terms.


06. Another advantage for exporter under FAS terms is that once the goods are placed for loading the vessel under FAS terms, the buyer takes care of total movement of goods and safety of goods is secured by the importer in an export import business.


07.  In an export import trade, one of the main advantages for importer when contract of carriage is under FAS is that the cost calculation against import customs clearance, import duties, import documentation and on carriage to final destination of buyer can be assessed by him under FAS terms of delivery rules, as the importer undertakes all such activities.


08. Selection of main carriage is done by the importer thereby; the control over ocean freight is with the buyer. This is an advantage for buyer.


09.  One of the another advantage for buyer under FAS terms is that the cost of movement of goods from the load port of loading to final destination can be ascertained by importer under FAS which helps him to do further business transactions with same supplier or suppliers of similar delivery terms.


10. Since the ocean freight is contracted by the importer, he holds control over releasing Bill of Lading and shipping tracking information from the shipping carrier. This is a merit for importer in international business when contract of carriage on FAS basis.


11. Since the risks and costs are covered by seller at his country, it is comparatively easier to handle rest of the movement of goods in buyer’s own country. This is an advantage for buyer when contract of carriage is on FAS basis.


12. Another advantage to buyer is that under FAS terms, importer is responsible to unload the goods and thereby he can ensure the safety of goods without damage when unloading the goods at final destination.


We hope the above advantages for importer under FAS enlighten you to do better business in import export business.


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