FOB vs. FAS a differentiating study based on Inco terms 2020 rules for movement of goods
What is the difference between Free Along Side at a named place and Free On Board at a named place?
How does FAS work and how FOB?
Among 11 inco terms under 2020, similarities are more for FAS and FOB.
When comparing both FOB and FAS rules of delivery under movement of goods, the major difference is that goods are placed by the buyer near a ship nominated by buyer. But under FOB rules of delivery, goods are placed onboard the vessel by the seller.
When deeply analyzing the difference between FOB and FAS some for facts can be discussed here. As explained, the seller is liable to place the goods at a named place where vessel is arriving or yet to arrive. If any cancellation of vessel or change of arrival place, the seller and buyer may face problems as the vessel planning for main carriage is undertaken by the buyer from his country. However, under FOB, such risks may be avoided.
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FAS – Free Along Side (named Place)
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FOB – Free On Board (named Places)
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Costs
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Risks
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Costs
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Risks
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Warehouse services
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Seller
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Seller
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Warehouse services
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Seller
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Seller
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Marking and labeling
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Seller
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Seller
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Marking and labeling
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Seller
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Seller
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Packing of Goods
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Seller
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Seller
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Packing of Goods
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Seller
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Seller
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Loading at Seller’s premises
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Seller
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Seller
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Loading at Seller’s premises
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Seller
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Seller
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Transportation from Seller’s
premises to Load port
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Seller
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Seller
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Transportation from Seller’s
premises to Load port
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Seller
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Seller
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Unloading at Loading Port
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Seller
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Seller
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Unloading at Loading Port
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Seller
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Seller
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Loading to Vessel/Aircraft
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Buyer
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Buyer
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Loading to Vessel/Aircraft
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Seller
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Seller
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Export documentation
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Seller
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Seller
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Export documentation
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Seller
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Seller
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Export Customs Clearance
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Seller
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Seller
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Export Customs Clearance
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Seller
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Seller
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Export Taxes and duties (if any)
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Seller
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Seller
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Export Taxes and duties (if any)
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Seller
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Seller
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Handling at Load Port
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Seller
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Seller
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Handling at Load Port
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Seller
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Seller
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Main Carriage
(Ocean Freight/Airfreight)
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Buyer
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Buyer
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Main Carriage
(Ocean Freight/Airfreight)
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Buyer
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Buyer
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Import Customs Clearance
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Buyer
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Buyer
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Import Customs Clearance
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Buyer
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Buyer
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Import Documentation
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Buyer
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Buyer
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Import Documentation
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Buyer
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Buyer
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Import Taxes and Duties (if any)
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Buyer
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Buyer
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Import Taxes and Duties (if any)
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Buyer
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Buyer
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Transportation from destination
port to named place
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Buyer
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Buyer
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Transportation from destination
port to named place
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Buyer
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Buyer
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Unloading at named place
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Buyer
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Buyer
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Unloading at named place
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Buyer
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Buyer
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Detailed posts about FAS and FOB are written in this website and you may click below link to understand easily:
FAS Free Alongside Ship
FOB Free On Board
The above posts are about the difference between FOB and FAS. You may add your thoughts to this post differentiating FAS and FOB under Inco terms rules 2020 issued by ICC for smooth movement of goods under trade.
Learn practical problems and solutions in Exports and Imports
Click here to read latest Inco terms rules for delivery of goods
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How to open Letter of Credit, easily explained here
C Rules of Delivery terms under Incoterms 2020 F Rules of Inco Terms 2020E Category of Incoterms 2020 Omni Model Inco Terms of Delivery 2020 FOB and CFR under Inco terms 2020 CIF and FOB under Inco terms 2020 Do Inco Terms rules talk about payment of goods? Does Incoterms explains about ownership of goods? Inco Terms used under Sea and Inland waterways only Difference between Omni model Inco Terms and Marine Restricted When does Bank use IncoTerms ? Compare CIF and DPU from Inco terms 2020 point of view CIF and DAP under Inco terms 2020 CPT delivery terms, buyer or seller to unload goods at destination? Difference between FAS and FOB under Inco terms 2020 CFR and FAS, A Comparison under Inco terms 2020 FAS and CIF under Inco terms 2020 CIF terms, Importer or Exporter responsible to unload the goods? Who arranges insurance under DDP terms of delivery as per Incoterms 2020? On Carriage under Delivery of goods, easily explained