How to differentiate FAS with EXW under Inco terms 2020
What are the differences between EXW and FAS under Incoterms 2020 delivery rules for movement of goods from the seller to buyer?
EXW can be used for all modes of transport where s FAS is used only for the movement of goods by Sea and Inland waterways.
Under EXW terms of delivery, pre carriage costs and risk is undertaken by the buyer where as pre carriage costs and risks under FAS is under the responsibility of Seller.
Loading charges and risks at seller’s place are under the responsibility of Seller in case of FAS terms, but the costs and risks of loading goods at seller’s place is on the shoulder of buyer under EXW terms of delivery under Inco term rules 2020 for movement of goods.
Export documentation and export customs clearance are absorbed by the seller with his on costs and risks under FAS terms. But the responsibility to undertake the costs and risks against export customs clearance and documentation are with the buyer under EXW terms as per Incoterms 2020.
Under EXW, the seller transfers his risks and costs to buyer when goods are placed at his premises or agreed named place before pre carriage. But under FAS, the seller passes his risks and costs to the buyer only at the time of placing goods near the Vessel nominated by buyer for main carriage.
The buyer contracts EXW terms, if he is familiar with the costs and risks involved in pre carriage and export customs clearance process at seller’s country. Also the buyer should have a sound knowledge and experience in handling main carriage, import customs clearance and on carriage risks and costs involved. But under EXW, all such risks and costs are transferred to buyer.
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EXW - Ex Works (named place)
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FAS – Free Along Side (named Place)
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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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Buyer
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Buyer
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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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Buyer
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Buyer
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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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Buyer
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Buyer
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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
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Buyer
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Buyer
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Export documentation
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Buyer
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Buyer
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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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Buyer
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Buyer
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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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Buyer
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Buyer
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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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Buyer
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Buyer
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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
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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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A detailed explanation about EXW and FAS is written separately in this website, you may click below to read:
FAS Free Alongside Ship
EXW Ex Works
The above information clearly explains about EXW and FAS. You may share your thoughts on difference between EXW and FAS under Inco terms 2020.
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