FAS and CIF under Inco terms 2020

Distinguish between CIF and FAS under delivery rules of ICC

Cost and Insurance and Freight at named location Vs. Free Along Side at a named location

Under FAS delivery terms, the seller completes his obligation of costs and risks under movement of goods and passes to buyer when he places the goods near a ship or other water carrier.  But under CIF delivery rules, the seller transfers costs of movement of goods to the buyer when the goods arrived at buyer’s side.

The risks under CIF terms passes from seller to buyer when the goods are placed on board the water carrier (Boat/Ship/Vessel), but under FAS terms of delivery, the seller transfers risks and costs when he places goods near to a vessel or the place where the vessel nominated by the buyer is planned.

The freight payment against main carriage under CIF is liable to pay by the seller.  But under FAS, the main carriage is undertaken by the buyer.

As per Incoterms 2020, under CIF delivery rules, the seller is liable to cover minimum insurance cover against the goods moved from seller to buyer.  However, Incoterms 2020 is silent about the parties responsible for arranging insurance under FAS rules of delivery thereby either the parties may undertake insurance as per their contract of carriage mutually agreed.

The buyer has control over deciding ocean freight, as main carriage is arranged by him and he holds strength in tracking shipment under FAS delivery terms.  But under CIF, the buyer has to depend upon the seller for getting export shipment details with shipping tracking, as the seller has control over freight under main carriage.

Detailed posts about CIF and FAS are explained easily with simple language in this website, you may click below to read those.

FAS  Free Alongside Ship

CIF  Cost Insurance and Freight

The above information about FAS and CIF may be added by sharing your thoughts below:

Click here to read other delivery rules under Inco terms  

Learn practical problems and solutions in Exports and Imports

Banking rules related to Exports and Imports in India

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